Buchanan board approves 2025–26 year‑end budget amendment, adopts 2026–27 appropriation

The Buchanan Community Schools Board of Education on June 29 adopted a year‑end amendment to the 2025–26 budget and approved the district’s 2026–27 budget appropriation to take immediate effect.

District business official Scott Johnson presented the amendment and the proposed 2026–27 assumptions, telling the board he prepared the changes “to align the budget as closely as possible with updated revenue and expenditure projections before the fiscal year ends at midnight tomorrow.” His presentation reviewed the general fund, building and site capital projects, debt‑retirement, food service, public improvement and student activities funds and explained the recommended appropriations.

Why it matters: staff said the 2026–27 proposal is intentionally conservative because the State of Michigan had not finalized its budget. Johnson described key assumptions including a projected $250 per‑pupil increase in foundation allowance, a modest enrollment decline (about 10 students), and roughly $21.7 million in total revenue for 2026–27. He warned the combination of assumptions produces “about a $1.3 million deficit for next year,” which would reduce the district’s projected unrestricted fund balance to about $3.9 million while keeping the district within its two‑month reserve policy.

Details cited at the meeting: Johnson said the district’s debt retirement fund balance was approximately $190,000 at June 30, 2025 and is projected to be “just over $140,000” at fiscal‑year end; he noted the Michigan Department of Education had characterized the food service fund balance as in excess and had encouraged the district to reduce that fund’s reserves. Johnson also explained recent millage activity, noting the district is collecting roughly 17.8390 operating mills (below the 18 mills authorized for non‑homestead properties) and reported a sinking‑fund rate of about 7.692 mills; he said changes to taxable values and Headlee rollbacks affect millage calculations and effective rates.

Board action: After presentation and discussion the board voted 7–0 to accept the 2025–26 amended budget and to adopt the 2026–27 budget appropriation under the general appropriations resolution. The motion was recorded and entered into the minutes.

What’s next: staff said they will finalize an amended budget once state counts and actual amounts are available and will provide monthly statements to the board so trustees can monitor fund balance and revenue collections through the coming year. The board also approved a $300,000 transfer from the general fund to the public improvement fund (separately approved by roll call) to set aside dollars for facility projects.