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Flat Rock board adopts 2026-27 budget, sets operating levy after Truth in Taxation hearing
Summary
The Flat Rock Community Schools Board adopted the 2026-27 Original Budget and supporting tax certification, setting the operating levy and confirming debt millage; the budget projects a $1.6 million operating deficit for next year amid declining enrollment and rising benefits costs.
The Flat Rock Community Schools Board of Education adopted its 2026-27 Original Budget and supporting tax certification following a Truth in Taxation hearing on June 22.
Administrators told the board the district will levy 18 mills on non-homestead property and 6 mills on commercial personal property for general operating purposes; a Headlee rollback factor (0.9907) reduced the district's authorized operating rate from 18.3436 to 18.1730 mills. Debt millage remains unchanged at 11.22 mills. District staff reported that non-homestead taxable values rose by about $5.38 million (5.02%), producing roughly $96,800 in additional operating tax revenue, while commercial personal property declined about 12.34%, reducing revenue by about $7,500; the net increase was reported at approximately $89,200.
The adopted 2026-27 General Fund budget lists total revenue at approximately $27.46 million and expenditures at approximately $29.06 million, yielding a projected operating deficit of about $1,604,000. Administrators cited a blended student count projection of 1,599 FTE (a decline of about 67 FTE), a foundation allowance of $10,300 per FTE, a projected net state-aid decrease of about $244,000, planned 3% wage increases under current collective bargaining agreements, and rising fringe benefit costs (4% for health/prescription premiums; 3% for dental/vision) as key assumptions driving the deficit.
Board members adopted the resolution by roll call vote: Ayes 6, Nayes 0, Abstain 0, Absent 1. The district noted the 2026 levy supports bond obligations and a payment to the School Bond Loan Fund of roughly $1,129,000 without an increase in the debt millage rate. Administrators also briefed the board on bond and construction funds, projecting that bond proceeds would be exhausted by June 30, 2027 and noting an expected arbitrage rebate obligation on Series II interest earnings (approximately 33% of interest income).
The board indicated the budget will be monitored as state aid is finalized and as enrollment and cost assumptions are confirmed.
