The Montague School Board unanimously approved the school district's budget, which calls for expenditures of just over $20.4 million, at its regular meeting Monday night.
The budget was assembled under current rates of 18 mills ($18 for every $1,000 of taxable value) on non-homestead property as well as a total of 8.5759 mills on homestead properties, 7.8 of which is the district's debt levy; the remainder is a sinking fund millage and is a slight decrease from a year ago.
District finance director Stacey Brown, as was the case last year at this time, noted that the state budget has not yet been passed, so the district does not yet know for sure what state funding it will be receiving. However, she said that Governor Gretchen Whitmer's proposed budget calls for per-pupil funding of $10,300, a $250 increase from 2025-26. That is identical to the number passed by the state House of Representatives earlier this year.
Despite that increase, the district is anticipating a net reduction in revenue of $630,000 as a result of the rising prices of most everything, including increases in salary paid to district personnel as well as fuel, utilities, etc. The district is also anticipating a drop in overall district enrollment of about 50 students, which was expected due to a larger high school graduating class.
"We welcome the (per-pupil fund) increase, but it does not begin to keep up with all the expenses in the world around us," Brown said.
The anticipated fund balance as a percentage of expenditures is 5.2%, though Brown noted that due to the conservative nature of the budgets she presents to the board annually, that number consistently improves as budget amendments are made. This year, that fund balance percentage will end at double the 5.2% currently projected for 2026-27.
Among potential projects that could be paid for by the sinking fund this year are heating and air conditioning improvements at the middle and high schools, repairs to the stadium's track, replacement of steps at Montague High School and a portion of the agricultural barn. Brown shared that the state has, since the passing of the millage that helped fund the barn, passed a law requiring state projects to pay wages not less than the "prevailing rates" in the locality in which the work has performed (this was under Public Act 10 in 2023). However, the district's attorney advised the district that if construction dollars come out of the sinking fund, they are not subject to the requirement.
During board business, the board unanimously approved the purchase of two used 2024 buses from the Holland Bus Company for $83,000 each, which will replace buses of model years 2007 and 2008 in the district's fleet. The money for the purchases is coming from the general fund and as the budget is concerned will be split between the current year's budget and the 2026-27 budget. Superintendent Jeffrey Johnson said purchasing the buses used, under a three-year lease, makes fiscal sense for the district compared with buying new buses, which he said run at $142,000 each.
The board also unanimously approved the hire of Stephen Gray as the new NBC Middle School principal beginning July 1. Gray will replace Jim Perreault, who is retiring. Gray will come over from the Black River district in Holland, where he is the social studies department chair and teaches history and economics. Gray is originally from Davenport, Iowa but is familiar with the area as his wife is the former Becky Herin of Shelby. He was the selection out of 13 original candidates for the position, Johnson said, of whom eight were interviewed.
Board president Joel Smith asked if Gray might be a candidate for an open coaching position, though Johnson advised against that from personal experience; he said he once attempted to coach while an administrator and due to the time constraints of both jobs does not believe it sets anyone up for success.
Another new hire approved unanimously by the board was Sara Blankstrom as executive administrative assistant and accounts payable specialist. Blankstrom, previously in a similar position at Whitehall, is a Montague alum and worked in the district office prior to her time in Whitehall. She will work with Michelle Pulver, who is leaving the position, over the final two weeks of June to ensure a smooth transition.
The board approved an amended contract for 2026-27 for Johnson as well after Smith said last month's board evaluation of his work was a positive one. There are no substantive changes in the contract, which is a rolling five-year pact, Johnson said - only dates and numbers were changed.
