General fund: $103.4M in revenue and expenditures
By Joseph Goral
Staff Writer
jgoral@mihomepaper.com
LAKE ORION — The Lake Orion Community Schools Board of Education adopted the district’s 2026 fiscal year budget during its regular meeting on June 25.
There were a number of changes that were made to the proposed budget from the final budget amendment that were also adopted during the meeting, according to LOCS Assistant Superintendent of Business and Finance Andrea Curtis.
“As of right now, we have an increase in local property taxes of $865,000,” Curtis said during the board meeting on June 11. “We have an increase of $1.059 million in state aid which projects a $392 per-pupil increase – or $10,000 per pupil from the governor’s budget, and a net decrease of 147 student FTE.”
There is a $558,000 increase of MPSERS 147a2, 147e and 147g funding and a $2.503 million in 147c1 MPSERS funding because the funding rate is going from 10.58% to 15.02%.
Curtis also said there is an increase in projected intermediate school district PA-18 special education funding of $303,000, an increase in other revenue of $700,000 due to the sale of the district’s administration building; a $3.03 million decrease in fiscal year 2025 one-time MPSERS 147a4 funding; a decrease of $2.081 million in 147g and 147c2 MPSERS funding due to offsetting expenses.
There is a $4.269 million decrease of state categorical grants. The most significant of these, according to Curtis, is to 35j professional development and 23g summer programming.
There is also a net $629,776 decrease in federal funding made up of the following: a $260,400 decrease in ESSER III funding, a $264,500 decrease in head start funds moved to the community service fund, a $43,500 decrease in title grants based on initial grant awards not including carryover and a $31,400 decrease in Grow Your Own finding, according to district documents.
Significant expense adjustments include new fiscal year projected wages based on bargaining groups and staff absorption to “right size the district,” and working toward keeping a balanced budget, Curtis said.
“Based on wages, the related retirement and FICA expenses were also adjusted,” she said.
The district’s general fund’s expected revenue and expenditures are $103.4 million.
The general fund’s expenditures are appropriated in the following amounts:
Basic programs, $47,519,493, and added needs, $14,710,223, make up the general fund’s total instruction expenditures of $62,229,716.
General fund expenditures to appropriate continue with support services in LOCS documents totaling $41,192,788. Support services are made up of pupil support services, $9,230,438, instructional staff support services, $4,895,294, general administration, $1,617,740, school administration, $5,084,988, business services, $1,485,488, operations and maintenance, $7,388,344, transportation services, $5,520,627, communication services, $254,974, human resources, $1,284,701, technology services, $2,160,146, pupil services, $284,911, athletics activities, $1,738,502, and community services, $246,635.
Curtis said she is keeping an eye on the community service fund.
“The resulting change to fund balance (due to transportation cost decreases) is a proposed $20,828 increase resulting in a $10.1 million fund balance,” Curtis said.
The district’s 2021 refunding bond will fall off because the last payment was made during the current fiscal year, but the 2025 bond debt for series three of the district’s current bond was added, according to Curtis.
“And then lastly we will pay off the school bond loan fund balance – the remaining principle of $472,529,” Curtis said.
To read LOCS documents regarding the budget resolution in full visit lakeorionschools.org/board-of-education, click “agendas and minutes” and navigate to the agenda from the June 11 and June 25 meetings.