South Lyon school board reviews final 2025'26 budget and proposed 2026'27 budget; tax-rate request filed
June 01, 2026 | South Lyon Community Schools, School Boards, Michigan
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The board received an extended budget presentation from finance director Mrs. Gray that covered the district's final fiscal-year 2025'26 numbers and the proposed 2026'27 general-fund budget and accompanying L4029 tax-rate request.
For 2025'26 Mrs. Gray reported an estimated ending fund balance of $16.8 million, about 13.4% of operating expenditures, with an estimated operating loss of roughly $1.5 million. She said revenue revisions included a $2.5 million net increase from state and grant sources that largely offset a decline in local property-tax receipts tied to updated county valuation figures.
Looking ahead to 2026'27 the administration presented a proposed budget that assumes a $10,250 per-pupil foundation allowance (a $200 increase used in planning) and a blended membership estimate of 8,156 FTE. Under those assumptions the district estimated a 2026'27 operating loss near $2.95 million and an ending fund balance of about $13.9 million (roughly 11.2% of expenditures). Mrs. Gray identified the 27L one-time educator compensation grant and the 35MM literacy allocation as notable drivers in year-over-year grant volatility.
She also reviewed tax-rate specifics and the Headley millage-reduction fraction used in L4029 calculations. The district reported an 18-mill operating non-homestead levy subject to a Headley reduction factor of .9899; the debt-service levy for all property was shown at 7.0 mills for a total requested levy of 25 mills. Mrs. Gray said the county-reported taxable value numbers produced an offsetting shift between local and state aid buckets rather than a net revenue loss when both sides of the calculation are combined.
Trustees and administrators discussed revenue assumptions, grant timing and risks from contract negotiations and enrollment trends. Several trustees thanked finance staff for conservative budgeting and emphasized the importance of maintaining a healthy fund balance given multi-year operating deficits in planning scenarios.
The board set required notices and will bring formal budget resolutions and the L4029 tax-rate request to the June 16 meeting for action and final adoption.
For 2025'26 Mrs. Gray reported an estimated ending fund balance of $16.8 million, about 13.4% of operating expenditures, with an estimated operating loss of roughly $1.5 million. She said revenue revisions included a $2.5 million net increase from state and grant sources that largely offset a decline in local property-tax receipts tied to updated county valuation figures.
Looking ahead to 2026'27 the administration presented a proposed budget that assumes a $10,250 per-pupil foundation allowance (a $200 increase used in planning) and a blended membership estimate of 8,156 FTE. Under those assumptions the district estimated a 2026'27 operating loss near $2.95 million and an ending fund balance of about $13.9 million (roughly 11.2% of expenditures). Mrs. Gray identified the 27L one-time educator compensation grant and the 35MM literacy allocation as notable drivers in year-over-year grant volatility.
She also reviewed tax-rate specifics and the Headley millage-reduction fraction used in L4029 calculations. The district reported an 18-mill operating non-homestead levy subject to a Headley reduction factor of .9899; the debt-service levy for all property was shown at 7.0 mills for a total requested levy of 25 mills. Mrs. Gray said the county-reported taxable value numbers produced an offsetting shift between local and state aid buckets rather than a net revenue loss when both sides of the calculation are combined.
Trustees and administrators discussed revenue assumptions, grant timing and risks from contract negotiations and enrollment trends. Several trustees thanked finance staff for conservative budgeting and emphasized the importance of maintaining a healthy fund balance given multi-year operating deficits in planning scenarios.
The board set required notices and will bring formal budget resolutions and the L4029 tax-rate request to the June 16 meeting for action and final adoption.
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