Development News for Farmington Hills, Michigan

District Approves 2026-2027 Budget and Proposes $171M Zero-Mill Increase Bond for Capital Improvements

The board discussed and reviewed the proposed 2026-2027 budget and tax levy, including details on various funds such as the general fund, debt service, nutrition services, student activities, capital projects, and internal service funds. The budget development process, staffing and enrollment projections, instructional supports, and grant funding were also addressed. Specific financial figures for revenue, expenditures, fund balance, and the breakdown of funding sources like property taxes and state aid were presented. The presentation also detailed expenditures by object (salaries, benefits, services, supplies) and by function (instruction, pupil services, support services). Challenges related to budget unknowns, such as fluctuating state funding and economic conditions, were highlighted. The proposed tax levy rates for homestead, nonhomestead, commercial personal property, and industrial personal property were outlined. During the public comment period, a resident expressed concerns about an $8 million budget deficit, high per-pupil spending, and the lack of detail on how funds are allocated to achieve educational goals, specifically questioning the plan to address the 44% of students reading below grade level. The board president and other trustees responded to the public comment, emphasizing the budget as a living document and the importance of respectful discourse. Further discussion involved the second budget amendment for the 2025-2026 fiscal year, detailing revisions to local and state revenue, federal grants, subcost budgets, and other known adjustments. Board members expressed appreciation for the work involved in creating the budget, noting efforts to control costs and the intentional use of funds for professional development and instructional support. Questions were raised regarding tutoring, SAT support, literacy and numeracy plans for junior high and high school, and the possibility of reducing class sizes. It was clarified that the $8 million 'loss' is an intentional use of fund balance, not a deficit. A significant portion of the meeting was dedicated to a presentation on capital improvements funded by a proposed zero-millage increase bond. The plan, totaling $171 million, focuses heavily on academic and instructional improvements (85%), with the remainder for infrastructure. Projects include upgrading classrooms, security, playgrounds, performing arts, and athletics. The bond proposal is intended to be presented to voters in November 2026 and will be phased over several years, with the first series of bonds issued in spring 2027. The current millage rate of 3.2 mills will be maintained.