The Royal Oak School Board convened on June 26, 2025, to discuss the budget for the upcoming 2025-2026 school year, highlighting significant financial challenges and necessary adjustments to ensure fiscal responsibility.

A primary focus of the meeting was the projected structural deficit of approximately $4.1 million for the 2025-2026 budget. This figure reflects various factors, including anticipated increases in collective bargaining agreement costs and adjustments in staffing levels due to recent teacher retirements. The board noted that while the district is legally required to pass a budget by July 1, they are still awaiting final budget figures from the state of Michigan, which complicates their planning.

Key discussions included the impact of House Bill 6058, which could potentially increase the district's funding for employee health insurance. The board emphasized the uncertainty surrounding state funding and the need for flexibility in their budget assumptions, particularly regarding student enrollment numbers, which could affect future funding.

In addition to the general fund, the board reviewed budgets for community services, food services, and student activities. The community service fund is projected to face a deficit of $809,000, while the food service fund anticipates a structural deficit of $560,000, largely due to new operational costs and the potential loss of state funding for universal free meals.

The board also addressed the importance of maintaining fund equity in the community service fund, which supports early childhood programs. They expressed a commitment to monitoring enrollment and program participation closely to mitigate future deficits.

As the meeting concluded, board members reiterated their dedication to transparency and fiscal responsibility, acknowledging the challenges ahead while remaining hopeful for positive developments in state funding and student enrollment. The outcomes of this meeting will play a crucial role in shaping the district's financial landscape for the coming school year, directly impacting students and families in the Royal Oak community.