ONSTED — Onsted Community Schools approved a sweeping set of staffing cuts and an administrative restructuring Monday night as district leaders warned of a worsening financial outlook driven by enrollment losses, rising costs and continued budget pressure.
During its April 20 regular meeting, the Board of Education unanimously approved eliminating one support staff position, four teaching positions and a major reorganization of district administration. Multiple votes passed 6-0, with board member Jason Terakedis absent.
The moves come as district budget documents project a fiscal year 2025-26 shortfall of about $1.2 million before additional cost pressures. With added costs and lost revenue, the projected gap rises further. Even after mid-year staff reductions, district documents project a budget shortfall of about $1.47 million, leaving a fund balance of roughly $1.11 million, or 5.85%.
Without those mid-year reductions, district projections show the fund balance falling to about $753,000, or 3.9%. Without both the reductions and a Section 31aa grant worth more than $414,000, projections show the balance dropping to about $339,000, or 1.7%.
Superintendent Royce told the board the recommended reductions were part of ongoing efforts to reduce the budget. The proposed four full-time equivalent teacher reductions were lower than originally projected because resignations reduced the need for further cuts.
The board first approved eliminating one OESPA position, then voted to eliminate four OEA positions. During discussion, Trustee Alex Gast said he was unhappy about reducing staff, though he believed it was necessary. Trustee Craig McMichael said he wanted the district’s TRADES program to continue.
The most significant long-term action was approval of an administrative reorganization added to the agenda at the start of the meeting.
Under the adopted resolution, the district will eliminate six existing administrative positions effective June 30:
- High school principal
- Middle school principal
- K-5 dean of students and safety coordinator
- Curriculum coordinator
- Athletic director/high school assistant principal
- Human resources director/finance director
Beginning July 1, the district will replace those roles with five consolidated positions:
- Secondary principal and district safety coordinator
- Secondary principal and continuous improvement coordinator
- Elementary principal and Title I coordinator
- Director of business, grants and GSRP
- Athletic director and high school graduation coach
The district resolution states the restructuring is expected to generate approximately $280,000 in recurring annual savings beginning in the 2026-27 fiscal year through reduced administrative contracts, benefits and consolidation of duties.
School officials said the goal is to preserve instructional programming, student services, safety systems and academic leadership while lowering overhead costs. The resolution also states the decisions were based on fiscal necessity and organizational restructuring, not misconduct or performance.
The board directed nonrenewal of administrative contracts tied to eliminated positions for Tim Comden, Alaina Ellison, Phil Stark and Dyan Biringer. The minutes separately list Comden among retirees effective July 1, along with Kelly Smith and Rachelle Wagner, while several resignations were also accepted.
The financial pressure appears linked in part to shrinking enrollment.
District presentation materials show pupil count declining from roughly 1,321 students in fiscal year 2017-18 to about 1,112 students in fiscal year 2025-26. While Michigan’s foundation allowance has increased over time to $10,050 per pupil, fewer students reduce total revenue capacity.
Looking ahead to 2026-27, district materials say the current year’s projected shortfall carries forward. Officials estimate enrollment of about 1,060 students next year and note reliance on grant funding, including Sections 31aa and 31a, literacy supports and mentoring funds.
The presentation also says administrators will continue reviewing staffing levels, examining purchases, seeking additional savings, and exploring shared services and shared resources.
One community member, Noelle Martell, addressed the board to ask how the administrative reconfiguration had been determined. According to the minutes, after Superintendent Royce reviewed the proposal, there was no further board discussion before the unanimous vote.
The board also approved disbursements totaling $1,222,985.36 and heard student reports, students of the month recognitions and a Project Lead The Way presentation on growing middle school enrollment in those courses.
We have reached out to Superintendent Jonathan Royce from Onsted schools for clarification and more details. WLEN will update the community once more information is available.