Thornapple Kellogg board approves 2026–27 budgets, holds tax levy at 18 mills

Thornapple Kellogg School District Board of Education members on June 15 adopted the district’s 2026–27 budgets and initial appropriation after a public hearing and presentation by district administration.

Administration reported the district’s fiscal 2024–25 actuals closed with a modest deficit and that the 2025–26 school year began with an approximate $1.45 million shortfall. After revisions tied to categorical grants the district projects a 14.61% fund balance for 2025–26 and said the final audit and unspent grant carryover could increase that percentage to about 16%. Revenues for the coming year were presented at just north of $50 million, down from a revised $51 million in 2025, with several one-time grants and startup funds (for example, a GSRP startup of $320,000) no longer available in 2026–27.

The board approved interfund transfers described by administration, including an increased transfer from the food-service fund into the general fund (previously $75,000, increased by $25,000 in later proposals) and a $10,000 transfer to the public library fund to prevent a negative fund balance. Administration said the food-service fund remains healthy, with an estimated roughly 20% fund balance despite a drop in lunch meals of about 5.3% (nearly 19,000 fewer lunches year-over-year). Student activity funds were budgeted using July–May actuals plus June activity from the prior year because club revenues and expenditures are timing-dependent.

On revenue drivers, administration noted a proposed foundation allowance of $10,300 and flagged ongoing state-level uncertainty about rolling categorical dollars into the foundation allowance. The presentation also described a Headlee rollback fraction that reduces the allowable millage; despite that, the district will again levy 18 mills on non-homestead property, which administration said generates roughly $3.9 million for the general fund. Debt-service levy was presented at 9.65 mills for five qualified debt bonds, producing about $10 million to service outstanding debt.

Board members asked about enrollment assumptions (administration projected 2,960 FTE for next year, down from 2,996.2), how meal counts account for snow days, and retirement-cost assumptions; administration said retirement rates are projected to decline (from about 29.91% to 27.51%) and noted a pending state legal matter (House Bill 6058) that could, if resolved against the district, add an estimated cost of roughly $350,000 — a contingency not currently budgeted.

Following the presentation the board took roll-call votes to adopt the resolutions approving the general fund, food service, public library and student activity budgets and to adopt the 2026–27 appropriation (initial) budget. Recorded votes on the budget adoption showed 'Yes' from Winger, Hess, Brock, Price, Stanton and Flick; the motions carried.

Next steps: administration said required L-4029/L-429 levy forms prepared with PFM will be signed and any remaining technical questions would be addressed by staff as the district moves into the next steps of audit and bids for capital projects.

Members of the public were given time for comment during the hearing; no substantive public objections to the budgets were recorded on the transcript.