Milan Area Schools is heading into the next school year with a preliminary budget that shows a tighter financial picture, with district officials stressing that the figures are still early estimates.
The Milan Area Schools Board of Education reviewed the preliminary 2026-27 budget during its May 19 regular meeting. The plan projects about $31.7 million in revenue and $33.6 million in expenses. If those numbers hold, the district would use about $1.9 million from fund balance.
Fund balance is the district’s reserve, or money left on hand at the end of the year. Under the preliminary budget, Milan would end the 2026-27 school year with about $708,939 in fund balance, or 2.1% of expenditures.
Early Budget Includes Unknowns
Finance Director Krista Hendrix said the budget includes several assumptions, including a $250 per-pupil foundation allowance increase, 30 fewer students than the district counted in February, lower estimates for some state aid payments and unknown grant carryover amounts.
The foundation allowance is the main per-student funding amount districts receive from the state.
“These numbers normally get better as the amendments go,” Hendrix said.
The $250 per-pupil increase has appeared in state budget proposals, but the final state budget had not been settled at the time of the meeting. Michigan Public reported earlier this month that both the Senate and House school budget proposals included similar per-student increases.
Board President Thomas Faro said the district is still waiting for final state numbers and that the per-pupil increase is only part of the picture.
“It’s always interesting when all the elected officials say, ‘We’re giving you a $250 increase,’ but they don’t talk about these other things that they’re taking away,” Faro said.
Faro cited possible changes to enrollment stabilization, transportation and retirement-related cost offsets.
The preliminary budget also accounts for the elimination of three certified staff positions. Superintendent Ryan McMahon said those positions had already been addressed.
Board Secretary Sara Meray also emphasized the uncertainty in the early numbers.
“There’s just a lot that’s unknown at this time,” Meray said. “We do anticipate that the budget will change.”
Current-Year Budget Improves
The current-year budget amendment shows a stronger ending position than the district projected earlier this year. Hendrix said the 2025-26 amendment now projects an ending fund balance of about $2.63 million, or 7.32% of expenditures. That compares with about $2.07 million, or 5.8%, in the previous amendment.
Part of that fund balance is assigned for Paddock Early Childhood Center. Without that assigned amount, the district’s unassigned fund balance is about 5.8%.
Faro reminded the board that its goal is a 10% fund balance, and that districts begin to face state-level concerns when fund balance drops below 5%.
The budget items were presented as first readings. The board is expected to vote on the amendments and preliminary budget at its June 3 meeting.
Other Board Action
The board voted 6-0 to support the 2026-27 Washtenaw Intermediate School District budget and renewed the district’s food service management contract with Chartwells.
Board members also approved a Milan Middle School water main replacement for an amount not to exceed $81,365 with Slusarski Excavating & Paving Inc. The project will replace the 4-inch domestic water service at the middle school and is expected to begin after students are out for the summer.
McMahon said the project is eligible for sinking fund dollars. The board also approved policy updates and the 2026-27 Professional Development Advisory Committee.
Literacy Curriculum Update
Assistant Superintendent Jennifer Bookout and members of the district’s elementary literacy team updated the board on CKLA, or Core Knowledge Language Arts.
Core Knowledge describes CKLA as a language arts curriculum that builds reading, writing, listening, speaking, knowledge and vocabulary.
District staff said Milan selected CKLA after reviewing curriculum options tied to state literacy changes and the science of reading. Staff said the curriculum focuses on reading skills, comprehension, vocabulary, background knowledge and writing.
Staff described the first year as a major shift for teachers and paraprofessionals, with CKLA taking up about 120 minutes a day. They said students are engaging with the material.
No public comments were offered during the meeting.
114 North Main St Suite 10 Chelsea, MI 48118
