Kalamazoo Weighs $42M Reserve for Teacher Raises

Families with children in Kalamazoo Public Schools should watch talks resuming next week over whether the district tapped its rainy day fund.

Updated on Nov. 6, 2026 in Administration

Kalamazoo Weighs $42M Reserve for Teacher Raises

Live Poll

Should Kalamazoo Public Schools use its rainy day fund to give teachers cost-of-living raises?

Kalamazoo Education Association and Kalamazoo Public Schools have not reached a contract settlement, and talks remain in mediation. The school board met in closed session with its attorney to prepare for resumed negotiations next week, affecting teachers and families in Kalamazoo.

Why it matters

The dispute centers on how the district spends its $42-million rainy day fund and whether state per-pupil funding, which rose this year but did not keep pace with inflation, can cover cost-of-living raises. For Kalamazoo households, the outcome shapes school budgets, staffing stability, and the cost pressures that can ripple into local property tax and school-related decisions.

Kalamazoo Public Schools holds a $42-million rainy day fund, a balance the district's fund reserves place below the Michigan average for schools. Teachers and parents disputed district figures showing Kalamazoo teachers are among the highest paid in the region.

The players

Kalamazoo Education Association

The union representing Kalamazoo teachers in contract negotiations with the district.

Kalamazoo Public Schools

The district that operates Kalamazoo's public schools and oversees its budget and staffing.

Darrin Slade

Superintendent of Kalamazoo Public Schools, who has opposed using the rainy day fund for raises.

The details

Trustees have discussed drawing on the $42-million rainy day fund to finance cost-of-living increases for teachers. Superintendent Darrin Slade has argued against using that reserve for this purpose. Trustees say they have limited control over how much money is available for salaries, since state per-pupil funding did not keep pace with inflation this year. Mediation remains the current process, and talks are set to resume next week.

Thursday, before November 6, 2026: teachers and parents challenged district salary figures at a board meeting.
Thursday, before November 6, 2026: the board met in closed session with its attorney after the meeting.
Next week: contract talks between the association and the district are scheduled to resume.

The Home Front

Per-pupil state aid in Michigan is the main lever districts use to fund teacher pay, and when it trails inflation, districts turn to reserves or local decisions. Kalamazoo's fund balance sitting below the Michigan average for schools puts its reserve choice at the center of the local housing-and-family cost picture.

If you have children in Kalamazoo Public Schools, watch the board's next public session for updates on salary terms and any decision to tap the rainy day fund. Families planning around school stability or local tax-supported budgets should track these talks as they resume next week.

The takeaway

Kalamazoo's fund balance sits below the Michigan average, so how the district uses its $42-million reserve will shape school budgets for local families. Keep the next board meeting on your calendar if you want to see the final contract terms.

What happens next

Contract talks between the Kalamazoo Education Association and Kalamazoo Public Schools are scheduled to resume next week, when the board is expected to return to the negotiating table.