Roll Call of present members:
President- Kurt Ziegler
Vice-President- Susan DeLong
Secretary- Elizabeth Munger
Treasurer- Amy Thomas-August
Trustee- Kenneth Gulock
Trustee- Amber Hildebrand
Trustee- Wendy Tobias

This agenda item is the opportunity for the audience to address the Board on any agenda item. The Board will take no action on issues brought before it at this time but may refer such issues to the administration for further study. 

In keeping with Board Policy po0167.3 the following rules apply to audience participation:

To permit fair and orderly public expression, the Board shall provide a period for public participation at public meetings of the Board and publish rules to govern such participation in Board meetings and in Board committee meetings.

The presiding officer of each Board meeting at which public participation is permitted shall administer the rules of the Board for its conduct.
The presiding officer shall be guided by the following rules:

1. Public participation shall be permitted at a time as determined by the presiding officer. 
2. Anyone with concerns related to the operation of the schools or to matters within the authority of the Board may participate during the public portion of a meeting. 
3. Attendees must register their intention to participate in the public portion of the meeting upon their arrival at the meeting. 
4. Participants must be recognized by the presiding officer and will be requested to preface their comments by an announcement of their name; address; group affiliation, if and when appropriate. 
5. Each statement made by a participant shall be limited to five (5) minutes duration.
6. No participant may speak more than once on the same topic unless all others who wish to speak on that topic have been heard. 
7. Participants shall direct all comments to the Board and not to staff or other participants.
8. All statements shall be directed to the presiding officer; no person may address or question Board members individually.

Move to approve the following:

• Minutes Regular Board Meeting May 18, 2026
• May Check Register
• May Investment Log
• May Purchase Card Report
• May SACC Report
• May Food Service Report

 Recommendation for approval of the following personnel report:

 

RESIGNATIONS

Lake Shore Federation of Teachers(LSFT), Local 01465

• Julia Westrick - LSFT 5th Grade Teacher, Violet Elementary School; effective June 10, 2026.

Lake Shore Federation of Support Staff (LSFSS), Local 04793

• Nicole Cherry - LSFSS Class A Elementary Recess/Lunchroom Monitor, Masonic Heights Elementary School; effective May 14, 2026.

• Todd Marshall - LSFSS Class C High School Campus Monitor, Lake Shore High School; effective June 10, 2026.

Non-Unit

• Jessica Vollaro - Non-Unit GSRP Teacher, Lake Shore Early Childhood Center; effective June 10, 2026.

RETIREMENTS

Non-Unit

• Jim Feldman — Non-Unit Social Studies Teacher, North Lake High School; effective June 10, 2026, after 30 years of service.

Lake Shore Federation of Support Staff (LSFSS), Local 04793

• Cheryl Maclean — LSFSS, Class E CI/ECSE Special Education Teaching Assistant, Lake Shore High School; effective June 10, 2026, after 18 years of service.

TERMINATION

American Federation of State, County, & Municipal Employees (AFSCME), Local 1217

• Employee # 385755  — AFSCME Kitchen Helper, Kennedy Middle School; effective June 9, 2026.

EMPLOYMENT RECOMMENDATIONS

American Federation of State, County, & Municipal Employees (AFSCME), Local 1217

• Alexandra Douglas — AFSCME Bus Driver, Districtwide; effective July 1, 2026; Bus Driver, Step 1

Lake Shore Federation of Teachers(LSFT), Local 01465

• Morgan Clausen - LSFT 5th Grade Teacher, Violet Elementary School; effective September 1, 2026; BA Step 1

• Allisyn Melcher - LSFT 5th Grade Teacher, Violet Elementary School; effective September 1, 2026; BA Step 1

• Erinne Lubienski - LSFT 4th Grade Teacher, Violet Elementary School; effective September 1, 2026; BA Step 6

• Ashley Johnson - LSFT Kindergarten Teacher, Violet Elementary School; effective September 1, 2026; MA Step 4

• Ashley Thompson - LSFT Kindergarten Teacher, Violet Elementary School; effective September 1, 2026; MA Step 5

• Samantha Gall - LSFT Elementary Music Teacher, Violet Elementary School; effective September 1, 2026; BA Step 1

• Abigail Finch - LSFT 3rd Grade Teacher, Rodgers Elementary School; effective September 1, 2026; BA Step 1

• Lillian Moceri - LSFT 4th Grade Teacher, Rodgers Elementary School; effective September 1, 2026; BA Step 1

• Devynn Lietz - LSFT Counselor, Kennedy Middle School, effective September 1, 2026; MA Step 1

REVISED SALARY SCHEDULES

• Administrative Salary Grid (ASG) 2026-2028

• Administrative Support Clerical (ASC) 2026-2028

• Support Personnel Hourly (SPH) 2026-2028

• Support Personnel Salary (SPS) 2026-2028

The Truth in Taxation Act requires that a notice of Public Hearing be circulated in a newspaper publication in connection with the statutory budgeting process. The hearing must officially be opened and closed.

President Ziegler shall open the Public Hearing to hear any testimony forthcoming from the community regarding the proposed 2026-2027 budget.
 

Based upon the information provided by the Macomb County Department of Equalization, the operating millage rate shall be 18.0000 mills on non-homestead property (maximum allowable) in tax year 2025. The debt rate shall be 7.0000 mills in tax year 2026, which remains the same as 2025.
 

GENERAL FUND PROPOSED FINAL BUDGET AMENDMENT — 2025/26 (COLUMN 4)

Column 4 of the attached document represents the Proposed Final Amendment to the 2025/26 General Fund Budget. Column 2 reflects the Approved Original Budget, which projected a net decrease of $3,072,582. Column 3 reflects the Approved First Amendment, which projected a net decrease of $1,550,930. The Proposed Final Amendment projects a net decrease of $832,068, representing an improvement of $2,240,514 from the Original Budget and $718,862 from the First Amendment.

The Proposed Final Amendment results in a projected General Fund balance of $7,642,027 as of June 30, 2026, representing 14.6% of General Fund expenditures.  This reflects a decrease of $832,068 from the June 30, 2025 fund balance of $8,474,095.

Since the February 2026 Amendment, General Fund revenues are projected to increase by $1,151,255, while expenditures are projected to increase by $432,393.

The major General Fund revenue and expenditure changes included in the Proposed Final Amendment compared to the February Amendment are summarized below:

GENERAL FUND REVENUES

Local Sources: Local revenue increased by a net amount of $71,083, including:

• $27k increase in investment earnings
• $22k increase in credit recovery revenue
• $18k increase in School Aged Child Care (SACC) revenues
• $10k increase in Lake Shore Foundation for Educational Excellence (LSFEE) contributions
• $5k decrease in property tax collections
• $1k net decrease in miscellaneous revenue, including athletics, cell tower lease payments, facility rentals, Chromebook repairs, and E-RATE revenue 

State Sources: State revenue increased by a net amount of $793,413, including:

• $73k increase in foundation allowance and declining enrollment revenue
• $51k increase in MPSERS Section 147 Cost Reimbursement and Defined Contribution (DC) Forfeiture Credit revenue

Additional state revenue adjustments are fully offset by corresponding expenditures and include:

• $402k increase in Section 31aa Per Pupil Mental Health Grant revenue
• $177k increase in Section 61v CTE Program Expansion Grant revenue
• $104k increase in Section 35m Literacy Supports Grant revenue
• $9k increase in Section 22l District Transportation Costs revenue
• $2k increase in Section 67f FAFSA Completion Grant revenue
• $18k decrease in Section 27l(2) Educator Compensation revenue due to the reallocation to the Food Service Fund to support eligible stipend expenditures
• $5k decrease in Section 99h First Robotics revenue
• $2k decrease in Section 31a At Risk Grant revenue

Federal Sources: Federal revenue increased by a net amount of $197,341, including:

• $80k increase in Title I, Part A revenue
• $87k increase in Title I, Regional Assistance Grant revenue
• $21k increase in Title II, Part A revenue
• $9k increase in Title IV, Part A revenue

Interfund Transfers: Interfund transfer revenue increased by $35,000 due to the adjustment of the indirect cost recovery transfer from the Food Service Fund.

Interdistrict Sources: Interdistrict revenue increased by a net amount of $54,418, including:

• $51k increase in Act 18 Center Program reimbursements from Macomb ISD
• $4k increase in revenue from the sale of capital assets
• $1k decrease in International Academy of Macomb revenue

GENERAL FUND EXPENDITURES

Basic Programs: Basic Programs increased by a net amount of $50,165, including:

• $104k increase in 35m Literacy Supports Grant expenditures
• $50k increase in Dual Enrollment and Early College expenditures
• $31k increase in textbook expenditures
• $28k increase in Regional Assistance Grant expenditures
• $2k increase in Section 67f FAFSA Completion Grant expenditures
• $70k decrease in tuition reimbursement expenditures
• $78k net decrease in salaries and benefits
• $12k net decrease in other purchased services
• $5k decrease in First Robotics expenditures

Added Needs: Added Needs increased by a net amount of $44,778, including:

• $165k increase in 61v CTE Program Expansion Grant expenditures
• $11k net increase in purchased services and supplies
• $131k net decrease in salaries and benefits

Pupil Supports: Pupil Supports decreased by a net amount of $125,541 primarily due to salary and benefit costs coming in below budget.

Instructional Staff: Instructional Staff increased by a net amount of $162,252, including:

• $58k increase in Regional Assistance Grant expenditures
• $45k increase in 31aa Mental Health grant expenditures
• $21k increase in Title II grant expenditures
• $16k net increase in salaries and benefits
• $12k increase in 61v CTE Program Expansion grant expenditures
• $7k increase in Title IV grant expenditures
• $3k increase in Title I grant expenditures

General Administration: General Administration decreased by a net amount of $10,640, including:

• $10k increase in LSFEE related expenditures
• $4k net increase in purchased services and supplies
• $24k net decrease in salaries and benefits

Fiscal Services: Fiscal Services decreased by a net amount of $14,077, including:  

• $4k net increase in purchased services and supplies
• $18k net decrease in salaries and benefits

Operations, Maintenance and Security: Operations, Maintenance and Security increased by a net amount of $118,232, including:  

• $124k increase in 31aa Mental Health expenditures
• $49k increase in utilities costs
• $11k net increase in supplies
• $56k net decrease in salaries and benefits
• $10k net decrease in purchased services

Athletics: Athletics decreased by a net amount of $21,471, including: 

• $28k increase in salaries and benefits
• $43k decrease in supplies and capital outlay
• $6k decrease in purchased services

Community Services: Community Services decreased by a net amount of $19,008, including: 

• $15k decrease in salaries and benefits 
• $4k decrease in other expenditures

Outgoing Transfers: Outgoing Transfers increased by $250,000 due to the transfer to the Building & Site Fund

OVERALL SYNOPSIS-GENERAL FUND

The Proposed Final Amendment to the 2025/26 General Fund Budget reflects a continued strengthening of the District’s financial position.  The projected operating deficit has improved from $3,072,582 in the Original Budget and $1,550,930 in the First Amendment to a projected net decrease of $832,068, representing an improvement of $2.24 million from the Original Budget and $718,862 from the First Amendment. The amendment results in a projected General Fund balance of $7.64 million, or 14.6% of annual expenditures.

The improvement is primarily attributable to increased revenues from local, state, and federal sources. State and federal revenues increased significantly due to additional allocations for safety and mental health services, literacy supports, career and technical education expansion, and other grant-funded programs. Local revenues also exceeded prior projections due to higher investment earnings, credit recovery revenue, and School Aged Child Care revenue.

General Fund expenditures increased overall since the First Amendment, largely due to additional expenditures associated with newly awarded grant funding, including Sections 31aa, 35m, and 61v. These increases were partially offset by salary and benefit expenditures that came in below budget across several functional areas. The amendment also includes a $250,000 transfer to the Building & Site Fund to support facility needs and a $115,000 indirect cost recovery transfer from the Food Service Fund.

The Proposed Final Amendment includes more precise cost estimates for expenditure functions, developed collaboratively with the Superintendent, central office administrators and staff, principals, and program directors. However, it is important to note that the Final Budget Amendment remains an estimate based on the most current financial information available.  The District’s auditors will present the actual audited financial data for the 2025/2026 fiscal year in the fall.

PROPOSED ORIGINAL GENERAL FUND BUDGET-2026/27 (COLUMN 5)

Column 5 of the attached document presents the Proposed Original 2026/27 General Fund Budget. The budget projects a net operating loss of $2,691,572, reducing the General Fund balance to an estimated $4,950,455 as of June 30, 2027. This equates to 9.0% of General Fund expenditures. The projected operating loss is $1,859,504 greater than the budgeted 2025/26 loss of $832,068.

This budget is based on the voter-approved operating millage rate of 18.0000. The combined debt millage rate remains at 7.0000, unchanged from prior years.

This budget reflects several significant structural changes that make year-over-year comparisons unique. Beginning in 2026/27, operations for the Early Childhood Center and North Lake High School have been transferred from the Adult Education Fund to the General Fund. In addition, expenditures previously budgeted in the Internal Service Fund have been incorporated into the General Fund budget, as the Internal Service Fund will be closed at the conclusion of the 2025/26 fiscal year. As a result, readers will notice increases in both revenues and expenditures that are attributable to these fund realignments rather than solely to changes in ongoing operations.

Compared to the 2025/26 budget, total revenues are projected to increase by $1,117,060, while total expenditures are expected to increase by $2,976,564. As a result, expenditures are projected to outpace revenue growth by $1,859,504.

Column 6 provides a summary of the major revenue and expenditure changes between the 2025/26 to 2026/27 budgets.

GENERAL FUND REVENUES

Local Sources: The net increase of $1,019,123 in Local Sources is primarily attributable to two factors. Property tax revenue is projected to increase by approximately $188,000 as a result of higher taxable values in 2026, while the transfer of the Early Childhood Center to the General Fund adds an estimated $887,000 in tuition revenue. These increases are partially offset by a combined decrease of approximately $55,000 in School Aged Child Care (SACC) revenue, cell tower lease payments, insurance claim reimbursements, and proceeds from the sale of technology items.

State Sources: The net increase of $174,197 in State Sources is primarily attributable to changes in foundation allowance funding, MPSERS reimbursements, and various state grants and categorical programs.

Key changes include:

• A $23,418 increase in foundation allowance revenue based on a projected $250 per-pupil funding increase and an enrollment projection of 2,980 students, including North Lake High School students whose funding was previously recorded in the Adult Education Fund.

• A $539,900 decrease in MPSERS Cost Reimbursement (Section 147) revenue due to the reduction in the Unfunded Actuarial Accrued Liability (UAAL) stabilization rate from 15.02% to 13.51% of prior-year wages.

• A net increase of approximately $691,000 in state grants, categorical funding, and one-time appropriations, including:

• $1.103 million increase in Section 31aa(5) Student Mental Health Staff funding
• $552k increase in Section 31aa Mental Health Grant per-pupil funding, including projected carryover from 2025/26
• $130k increase in Section 31aa(4) School Resource Officer and Safety Dog funding
• $449k decrease in Section 27l Educator Compensation Program funding
• $320k decrease in Section 35m Literacy Supports funding
• $131k decrease in GSRP carryover funding
• $165k decrease in Section 61v CTE Program Expansion funding
• $18k decrease in Section 27h Mentor Stipends funding
• $7k decrease in Section 35a(5) Early Literacy Targeted Instruction funding

Federal Sources: Federal Sources are projected to decrease by $167,109. This reduction is attributable to the elimination of Filter First funding associated with the completion of the project during the 2025/26 fiscal year. While additional funding opportunities may become available through a future Round 2 application process, no related revenue has been budgeted for 2026/27 at this time.
 
Interdistrict Sources: The $90,849 net increase in Interdistrict Sources is primarily due to a $60,989 projected increase in Special Education County Millage funding and a $34,000 increase in Enhancement Millage revenue from the Macomb ISD. These amounts are calculated by the MISD and are based on Spring 2026 student count and taxable value adjustments.  The increase is partially offset by the removal of $4,140 budgeted for proceeds from the sale of capital assets.

GENERAL FUND EXPENDITURES

Basic Programs: Expenditures for Basic Programs are projected to increase by a net $43,011. Significant changes include:

• A net increase of approximately $424,000 associated with the transfer of North Lake High School operations to the General Fund, including:
  • $298k for salaries and benefits
  • $123k for purchased services
  • $3k for supplies

• $379k increase in salaries and benefits funded through the Section 31aa Mental Health Grant
• $97k net increase in salaries and benefits, reflecting contractual step increases for 2026/27, changes in the employer retirement contribution rate, and a 3% increase in health insurance costs, partially offset by staffing changes resulting from newly hired teachers entering at salary steps lower than the retired employees they are replacing
• $68k net increase in supplies and capital outlay expenditures
• A decrease of approximately $662,000 related to several grant-funded programs, including:
  • $320k for the Section 35m Literacy Supports Grant
  • $204k for the Section 27l Educator Compensation Program
  • $131k in GSRP carryover funding
  • $7k for the Section 35a (5) Early Literacy Targeted Instruction Grant
• $220k net decrease in textbook budgets
• $41k net decrease in purchased services

Added Needs: Expenditures for Added Needs are projected to increase by a net $190,295. Significant changes include:

• $417k net increase in salaries and benefits, reflecting contractual step increases for 2026/27, changes in the employer retirement contribution rate, and a 3% increase in health insurance costs
• $4k net increase in purchased services and supplies
• $165k net decrease for the 61v CTE Expansion Grant
• $66k net decrease for the Section 27l Educator Compensation Program

Pupil Supports: Expenditures for Pupil Supports are projected to increase by a net $1,198,361, primarily due to increased salaries and benefits costs associated with expanded mental health staffing and ongoing personnel-related cost increases. Significant changes include:

• $1.103m increase in salaries and benefits funded through the Section 31aa(5) Student Mental Health Staff Grant
• $204k net increase in salaries and benefits, reflecting contractual step increases for 2026/27, changes in the employer retirement contribution rate, and a 3% increase in health insurance costs
• $82k net increase associated with the transfer of North Lake High School operations to the General Fund for salaries and benefits
• A decrease of approximately $191k related to several grant-funded programs, including:
  • $114k for the Section 31aa Mental Health Grant
  • $72k for the Section 27l Educator Compensation Program
  • $5k for the Section 27h Mentor Support Grant

Instructional Staff: Expenditures for Instructional Staff are projected to decrease by a net $27,154. Significant changes include:

• $157k increase funded through the Section 31aa Mental Health Grant
• $2k net increase in supplies
• $164k net decrease in salaries and benefits, primarily due to the reduction of one position
• $14k decrease for the Section 27l Educator Compensation Program
• $8k decrease for the Section 27h Mentor Support Grant

General Administration: Expenditures for General Administration are projected to decrease by a net $10,375. Significant changes include:

• $4k net increase in salaries and benefits, primarily related to the restructuring of central office staff
• $13k net decrease for purchased services and supplies
• $2k net decrease for the Section 27l Educator Compensation Program

School Administration: Expenditures for School Administration are projected to increase by a net $280,600. Significant changes include:

• A net increase of approximately $208,000 associated with the transfer of North Lake High School operations to the General Fund
• $140k net increase in salaries and benefits, reflecting contractual step increases for 2026/27, changes in the employer retirement contribution rate, a 3% increase in health insurance costs, and an additional secretary at Lake Shore High School
• $30k net decrease for the Section 27l Educator Compensation Program

Fiscal Services: Expenditures for Fiscal Services are projected to increase by a net $232,411.
Significant changes include:

• A $201,000 increase in workers' compensation expenditures associated with the transfer of the Internal Service Fund to the General Fund
• A net increase of approximately $36,000 associated with the transfer of North Lake High School operations to the General Fund
• $5k net decrease for the Section 27l Educator Compensation Program

Operations, Maintenance and Security: Expenditures for Operations, Maintenance, and Security are projected to increase by a net $335,576. Significant changes include:

• $130k increase funded through the Section 31aa(4) School Resource Officer and Safety Dog Grant
• $129k increase funded through the Section 31aa Mental Health Grant
• $105k net increase in salaries and benefits, reflecting contractual step increases for 2026/27, changes in the employer retirement contribution rate, and a 3% increase in health insurance costs
• $85k net increase in utility costs
• $57k net increase in purchased services
• $17k net increase in supplies and other expenditures
• $5k net increase associated with the transfer of North Lake High School operations to the General Fund
• $5k net increase associated with the transfer of Early Childhood Center operations to the General Fund
• $167k decrease related to the completion of the Filter First project
• $30k net decrease for the Section 27l Educator Compensation Program

Transportation: Expenditures for Transportation are projected to increase by a net $34,697.
Significant changes include:

• $46k net increase in salaries and benefits, reflecting contractual step increases for 2026/27, changes in the employer retirement contribution rate, and a 3% increase in health insurance costs
• $1k net increase associated with the transfer of North Lake High School operations to the General Fund
• $13k net decrease for the Section 27l Educator Compensation Program

Central: Expenditures for Central Services are projected to decrease by a net $10,474. Significant changes include:

• $91k net increase in salaries and benefits, reflecting contractual step increases for 2026/27, changes in the employer retirement contribution rate, a 3% increase in health insurance costs, and the addition of two part-time media technician positions
• $6k net increase associated with the transfer of North Lake High School operations to the General Fund
• $3k net increase in purchased services and supplies
• $100k net decrease for the reduction of severance payout budgets
• $10k net decrease for the Section 27l Educator Compensation Program

Athletics: Maintain the original budget of $900,000 from the previous year.

Community Services: Expenditures for Community Services are projected to increase by a net $938,145. Significant changes include:

• $882,000 net increase associated with the transfer of the Early Childhood Center operations to the General Fund
• $62k net increase in salaries and benefits, reflecting contractual step increases for 2026/27, changes in the employer retirement contribution rate, and a 3% increase in health insurance costs
• $6k net decrease for the Section 27l Educator Compensation Program

Outgoing Transfers: Expenditures for Outgoing Transfers are projected to decrease by $250,000 due to the removal of the budgeted transfer to the Building & Site Fund. No transfer has been included in the 2026/27 budget at this time; however, the need for a transfer will be reevaluated during the fiscal year based on available fund balance, operational needs, and capital project requirements.

OVERALL SYNOPSIS-GENERAL FUND

The Proposed Original 2026/27 General Fund Budget reflects a projected net operating loss of $2,691,572, resulting in an estimated Fund Balance of $4,950,455 as of June 30, 2027, or 9.0% of General Fund expenditures. This represents a decrease in net income of $1,859,504 compared to the 2025/26 budgeted operating loss of $832,068.

The 2026/27 budget reflects several significant structural changes that make year-over-year comparisons unique. Beginning in 2026/27, operations for the Early Childhood Center and North Lake High School have been transferred from the Adult Education Fund to the General Fund. In addition, expenditures previously budgeted in the Internal Service Fund have been incorporated into the General Fund as the district transitions away from its self-insured workers’ compensation model. The Internal Service Fund will be closed at the conclusion of the 2025/26 fiscal year. As a result, increases in both revenues and expenditures are influenced by these fund realignments and are not solely attributable to changes in ongoing district operations.

Compared to the 2025/26 budget, revenues are projected to increase by $1,117,060, while expenditures are projected to increase by $2,976,564. Revenue growth is primarily attributable to the transfer of Early Childhood Center tuition revenue to the General Fund and increases in State mental health funding. Expenditure growth is largely driven by the transfer of the Early Childhood Center, North Lake High School, and workers’ compensation expenditures to the General Fund, as well as contractual salary step increases and a 3% increase in health insurance costs.

The budget is based on a projected foundation allowance increase of $250 per pupil and an enrollment projection of 2,980 students, including North Lake High School students. The budget also reflects a reduction in MPSERS Cost Reimbursement revenue due to the decline in the Unfunded Actuarial Accrued Liability (UAAL) stabilization rate from 15.02% to 13.51% of prior-year wages.

It is important to note that this budget was developed prior to the enactment of the State’s 2026/27 School Aid Budget. As a result, several key assumptions, including the per-pupil foundation allowance, categorical funding allocations, grant awards, and other State Aid provisions remain subject to change. These factors will be closely monitored throughout the fiscal year and may require future budget adjustments.

The budget does not include a transfer to the Building & Site Fund. The need for such a transfer will be reevaluated during the fiscal year based on available fund balance, operational needs, and capital project requirements.

Based on current projections, the district does not anticipate the need to issue a State Aid Anticipation Note during 2026/27. However, cash flow will continue to be monitored throughout the fiscal year, and borrowing needs will be reevaluated should State funding or other financial conditions materially change.

PROPOSED ORIGINAL BUDGET-OTHER FUNDS-2026/27

The remaining attached documents are the Proposed Original 2026/27 Budgets for all the other funds of the District. The major highlights are as follows:

ADULT EDUCATION FUND — The Adult Education Fund is projected to end the 2026/27 fiscal year with a fund balance of $38,869. The budget reflects a new chapter for the Adult Education Fund as the Early Childhood Center and North Lake High School have been transferred to the General Fund. As a result, the Adult Education Fund is now focused primarily on trips, tours, enrichment, and community education programming.
The opening of the district's new Community Center provides an exciting opportunity to expand programming and services for students, families, and community members. As new offerings are introduced and participation increases, the district anticipates corresponding growth in program revenues. The district will continue to monitor participation levels, evaluate program offerings, and assess financial performance throughout the year to ensure the fund remains responsive to community interests while maintaining long-term financial sustainability.

FOOD SERVICE FUND — The Food Service Fund is projected to end the 2026/27 fiscal year with a fund balance of $584,184. The fund will continue to contribute $115,000 in indirect cost recovery to help offset central office expenses in the General Fund.

The Governor's proposed 2026/27 budget includes continued funding for the Michigan School Meals program, which would allow all public-school students to receive free breakfasts and lunches during the school year. However, final funding is dependent upon approval of the State budget, and the district will continue to monitor legislative developments closely.

Despite ongoing inflationary pressures impacting food, supply, and labor costs, the fund is projected to begin the fiscal year with a healthy fund balance of $647,430 as of June 30, 2026. This provides the district with financial flexibility and a cushion against future operating losses or changes in State and federal funding.

COMMON DEBT FUND — The 2026/27 fiscal year marks a significant transition in the district's debt service operations. In May 2026, the Board of Education approved the establishment of a Common Debt Fund, which will consolidate the district's existing debt service funds into a single fund beginning in 2026/27.

The consolidation is intended to simplify financial reporting, improve administrative efficiency, and provide a comprehensive view of the district's debt obligations and related tax revenues. Upon completion of the 2025/26 fiscal year, the remaining balances and activities of the existing debt service funds will be transferred to the Common Debt Fund, and future debt-related revenues and expenditures will be recorded within the new fund.

The district will continue to monitor taxable value growth, debt levy collections, and future debt service requirements to ensure sufficient resources are available to meet all bond principal and interest obligations.

2022 CAPITAL PROJECTS FUND — The 2025/26 fiscal year represents the final year of activity for the 2022 Capital Projects Fund. With the completion of the projects funded through the initial 2022 bond issuance (Series I), the district anticipates closing the fund at the conclusion of the 2025/26 fiscal year. Any remaining fund balance will be transferred to the 2024 Capital Projects Fund (Series II) to support ongoing bond projects authorized under the 2022 bond program.

INTERNAL SERVICE FUND — The 2025/26 fiscal year represents the final year of operations for the Internal Service Fund. Effective July 1, 2025, the district transitioned from a self-insured workers' compensation program to a fully insured workers' compensation program.  As a result, workers' compensation expenditures previously accounted for in the Internal Service Fund have been incorporated into the General Fund beginning in 2026/27.

As part of the Early Childhood Center renovation project, classroom furniture is needed for several special education programs that will be relocating to the new facility, including the Early Childhood Special Education (ECSE) Self-Contained Preschool, the Early Childhood Special Education Preschool program for students with Moderate Cognitive Impairments (MoCI), and the K-2 Special Education program for students with Mild Cognitive Impairments (MiCI).

The Special Education Preschool programs were previously housed at Rodgers Elementary, and the MiCI program was previously located at Violet Elementary. These classrooms did not receive new furnishings as part of prior district furniture purchases. As these programs transition to the Early Childhood Center, updated furniture is needed to support student learning, accessibility, safety, and the specialized instructional needs of each classroom.

The furniture package includes classroom seating, tables, storage units, sensory and dramatic play furnishings, teacher workstations, learning center materials, and other age-appropriate furnishings designed to create functional and engaging learning environments for students with diverse learning needs.

Lakeshore Learning Materials provided a furniture quote totaling $80,692.74 through the OMNIA cooperative purchasing program, allowing the District to utilize competitively solicited pricing without issuing a separate Request for Proposal. The cooperative contract pricing includes discounts and freight savings totaling $16,988.00.

The project will be funded through Series II Bond proceeds.                            
Enclosure: Lakeshore Learning Materials Quote #1000008586

The furniture package includes student gaming workstations, task seating, collaborative learning furniture, storage cabinets, instructor workstations, and flexible seating designed to support the District's Esports program.

NBS Commercial Interiors provided a furniture quote totaling $38,007.09 through the E&I Cooperative Services consortium, allowing the District to obtain competitively solicited pricing without issuing a separate Request for Proposal. The cooperative contract pricing includes furniture, delivery, and installation.

The project will be funded through Series II Bond proceeds.

Enclosure: NBS Commercial Interiors Quote #402938

Students will attend the Student Television Network (STN) National Convention 2027 in Long Beach California on March 17-22, 2027. The students will create, complete, and connect across broadcast, film, and multimedia, as well as, attend media sessions lead by industry professionals.

Lake Shore High School has been a member of STN for the past two years and has participated in several remote competitions.

Recommended travel arrangements for 10-14 students have been coordinated through Bob Rogers Travel in partnership with West Bloomfield High School. Combining travel plans provides cost savings through group airfare, shared transportation, and educational experiences included in the itinerary. The proposed itinerary is attached.

Travel will be by Delta Airlines, with lodging at the Hyatt Regency Long Beach 200 S. Pine, Long Beach CA (562)491-1234. Fundraising efforts will help offset student costs. District-approved permission slips, including medical information, will be obtained for all participants.
 

LSPS fourth-grade students will travel by motor coach and ferry to Mackinac Island to engage in a Michigan historical "being there" experience. Students will explore Michigan's economic history and the impact of European exploration on our state and our economy. The field trip connects the fourth-grade social studies benchmarks for Michigan's history, geography, economy, and culture.

The field trip dates are May 11-13, 2027. Cost per student is $600.

We are recommending Preferred Charters, 3001 Dove Rd, Port Huron, MI 48060 (810-982-7433) with lodging accommodation at Mission Point Resort, 6633 Main St, Mackinac Island, MI 49757 (906-430-8138).

District-approved permission slips that include full medical information will be used.