Letter: Superintendent Provides Update on 2026-2027 Budget

A man leans over a budget document with a pen and a calculator

Letter: Superintendent Miller-Nelson Provides an Update on 2026-2027 MPS Budget

Video Message

Note: If you'd rather watch than read, please see the video message above. 

June 15, 2026

Dear Midland Public Schools Families and Staff,

At Midland Public Schools, we are committed to transparency, accountability, and fiscal responsibility. We are also committed to keeping our entire school community informed and updated.

I’m writing to provide an update on our projected budget for the 2026-2027 school year. In preparing next year’s budget, we currently anticipate a deficit of approximately $13 million. Although we intentionally planned to operate on a deficit budget, using reserve funds from our fund balance to resource student programming, the deficit is larger than originally anticipated. We want to assure you that we have both the funds to cover this deficit and an initial plan in place that minimizes impacts on students and the classroom.

Several factors have contributed to this situation, including the continued uncertainty with state funding as the state Legislature finalizes next school year’s education budget. We are predicting a 7.7% decrease in our state funding compared to last year. Student enrollment also directly affects the per-student funding we receive from the state. With many learning options changing the landscape of public school enrollment in our state, it’s critical that we remain competitive by continuing to offer exceptional programming and high-quality educational opportunities to meet student needs, while being responsible stewards of public funds.

To address our budget deficit, we are looking at all areas of our operations. Staffing accounts for 83% of our district’s total budget. This is consistent with other school districts. We are still determining the specific impact, if any, we expect to have on our staffing. We are currently using an attrition model for staffing, which means we may not fill certain positions after staff retirements or resignations. This approach allows us to move toward a more efficient staffing model while honoring our current commitment to our outstanding teachers, support staff, and other school employees. I have also asked every department in our district, including Central Office, to enact cost-saving measures, find efficiencies, and reduce spending to minimize the impact on our classrooms and students. 

As part of our plan to address the deficit, we anticipate preserving a fund balance of just under 16%, which is still above the minimum 12% indicated by Board policy. Maintaining this reserve helps us plan for the future, including any immediate needs we may not budget for in a given school year.

We are determined to make any budgetary changes with as little impact as possible on our programming, students, staff, and classrooms.

I realize that updates like this can raise questions and concerns. We plan to keep our community fully informed as we work through this challenging budget cycle. Working together as a community, we will continue our mission of providing a learning environment where all our students have the opportunity to achieve, succeed, and thrive. 

Sincerely,

Superintendent Penny Miller-Nelson's signature
Penny Miller-Nelson
Superintendent
Midland Public Schools