Marshall Public Schools board approves 2025-26 budgets amid state funding uncertainty

The Marshall Public Schools Board of Education on Monday approved the 2025-26 general fund, food service and student activity budgets following a public hearing and discussion of state funding changes and local grants.

The board opened a public hearing on the district’s 2025-26 budget and heard a presentation from Kendra, a district staff member who reviewed last year’s savings and this year’s projections. The board then approved the budgets in roll-call votes (motion to approve the 2025-26 budgets by Derek Allen, supported by Mark Mihalka; roll-call votes recorded as yes by Jerry Underhill, Mark Mihalka, Derek Allen, Matt Davis, Amanda Lankard and Lauren Brown).

Kendra said the district saved “over half a million dollars” this year by refunding 2015 debt and consolidating debt accounts into a common debt fund, which increased investment returns. For 2025-26 she said the state is proposing a maximum foundation allowance of $10,000 per pupil and a 4.1% increase in at‑risk and ELL funding; she emphasized the foundation allowance combines property tax and state aid and that the district cannot receive more than the $10,000 per pupil cap.

Kendra outlined several state-level changes affecting district revenue and expense lines: an increase in the retirement unfunded actuarial liability (UAL) rate from 10.58% to 15.02% (revenue to the district is expected to offset the higher employer cost), elimination of a line identified as “147a4” that she said represents a loss of about $982,000 for the district, and a reduction in the MPSERS rate from 31.36% to 29.91% (a projected savings of roughly $200,000). She also said federal and state special‑education and mental‑health funding shifts will have neutral or mixed impacts on the district’s net position.

On fund balance, staff projected a one‑year draw of about $2.4 million (described in presentation materials as a 2.4% reduction) that would leave the district with roughly a 12–15% fund balance. Kendra said that the district will not need to take a traditional September cash‑flow note this year — a step that has been required in prior years — and that avoiding that loan is expected to save the district an estimated $70,000–$90,000 in interest costs.

The board packet included separate funds: staff said the student activities fund is expected to take in about $500,000 and spend about $450,000, while food service appropriations were projected at approximately $2,000,000 with expenditures near $1,900,000.

Board members voiced frustration with state budget timing and the difficulty of preparing a July 1 budget before the district receives final state aid numbers; one trustee described the state process as an “absolute embarrassment” for school districts. Board members also noted that past conservative budgeting and year‑end adjustments often reduce the projected draw on fund balance.

During public comment, Jess Roberts of the Albion NAACP identified her organization and said the group is “here to help” and watching district activity; no one spoke in opposition to the budgets during the hearing.

The board approved the revised 2024-25 general fund budget earlier in the meeting as well (motion by Mark Mihalka, supported by Matt Davis; roll-call votes recorded as yes by the board), and then took the separate roll‑call vote to adopt the 2025-26 general fund, food service and student activity budgets.

The board also approved related routine finance items during the same session, including a resolution to set the 2026 operating, debt and sinking fund levies at the same millage levels as the prior year.

The district’s superintendent and finance staff said they will return to the board with any necessary budget amendments if legislation or final state aid numbers require changes.