News Photo by Reagan Voetberg Alpena Public Schools Associate Superintendent for Business and Operations Mary Lyon speaks to the APS Board of Education on Monday.

ALPENA — The Alpena Public Schools Board of Education approved the 2025-2026 General Appropriations final budget amendment resolution and the 2026-2027 General Appropriations budget resolution at the regular meeting on Monday.

2025-2026 GENERAL APPROPRIATIONS FINAL BUDGET

Mary Lyon, associate superintendent for business and operations, explained the outcome of the 2025-2026 budget.

“I just want to remind our public and board about a couple things,” Lyon said. “So our general fund is our operating fund, and that’s what the 18 mills, minus the Headlee rollbacks, that’s what’s used to support that and other money from the state. That fund is what we use to pay our employees, order curriculum supplies, and different things like that. That is also the fund where all of our grants, or most of our grants, flowed through.”

The general fund for 2025-2026 consisted of $12,841,373 in local revenue, $40,248,827 in state revenue, and $2,139,111 in federal revenue. Other financing sources were $150,000 pulled from food service for indirect costs, that cover expenses in the general fund that food service creates.

That creates a total revenue of $55,344,311. The fund equity balance when the school year started was $17,447,543, meaning total available to appropriate was $72,791,854. Lyon said the district will be appropriating $56,277,445, to close off the year

“Due to this adoption we will be drawing $930,134 out of fund equity, so as of the end of the fiscal year our fund equity will then be about $16,514,409,” Lyon said. “I say approximate because I have to leave money in here that somebody didn’t do a purchase order for, or all of the wages that have to be accrued back to this year.”

There was a major increase in the teacher contract because per-pupil allowance was larger than what was written into the contract.

There were high increases in online costs, dual enrollment/early college costs, snow removal costs, and healthcare costs.

The district lost $151,000 in special education revenue, and Waggle math, which is used in elementary math education, was an increased cost.

Two or three months ago the district received a reduction in transportation revenue reimbursement. The state re-ran the figures and a lot of school districts got a reduction, that was $12,456.

The district also lost the enrollment stabilization funds, due to not meeting the threshold for it, that was $133,000 lost.

2026-2027 GENERAL APPROPRIATIONS BUDGET

“This one does not look very pretty right now, I do not have a budget from the State so this is my worst case scenario,” Lyon said.

There is an assumed local revenue of $12,603,278. The State assumed revenue is $38,684,186. Assumed Federal revenue is $4,889,366 and the other financing sources which is the indirect cross draw from food service is expected to be $115,000. The total projected possible general fund revenue is $53,291,830. The fund equity balance as of July 1 was $16,514,409. That is the projected fund balance at the end of 2025-2026 and that number may change.

$69,806,239 dollars total are available to appropriate. Lyon budgeted for $57,366,488 to be appropriated.

“I am very disappointed with the State of Michigan over the last couple of budgets,” Lyon said. “They demand school districts have their budget in place by June 30 and they do not give us the same grace. So every year we are guessing, throwing our darts at the wall and wondering what in the world we are going to end up with.”

The district will be drawing $4,074,658 out of fund equity. That will leave $12,439,751 in fund equity.

“That is not a pretty picture,” Lyon said. “We are looking at online costs, dual enrollment and early college costs and several other areas to try and reduce costs this coming fiscal. Not this past year but the year before we did not receive a per pupil increase. Per pupil was the same for two years in a row, that does not help our district.”

The food service fund total revenue is expected to be $3,298,560 with a fund balance of $663,672, making the total to appropriate $3,962,232. The district will be appropriating $3,290,050 which will give their fund balance a little bump of $8,510.

Lyon said that all budgets for 2026-2027 include union raises and contracts.

Long range maintenance will have $200,000 revenue transferred from the general fund. The fund balance is $472,081and the total available to appropriate is $622,081. The district will be appropriating $497,935. That will leave a fund equity at 174,146.

“The 1 million we transferred two years ago is pretty much gone already,” Lyon said.

The Long range technology revenue is projected to be $199,482. The Fund balance is $406,608, meaning $608,290 is the total available to appropriate. The district is appropriating $292,711, with $93,229 from the fund equity, which will leave approximately $315,579 in fund equity.

In the Series II bond, the assumed local revenue is $75,000. This is interest in the bank, Lyon said, based on the average from this year.

The fund balance in that account at the end of the 2025-2026 year was $3,071,071, which leaves $3,146,071 to be appropriated. Lyon said the district is planning to appropriate the full amount, to close out at the bond at the end of the school year.

The assumed local revenue in student activity is $116,540. The speculative fund balance at the end of the year is $389,358, giving $505,898 available to appropriate. The district will be appropriating approximately $375,000 from that fund.