District outlines $724 million in expenses, $237 million for capital projects at second budget hearing

The Baldwin County Board of Education heard the district's second public budget presentation Tuesday, with staff reporting projected revenue of $555,000,000 and total expenses of $724,000,000, including nearly $237,000,000 slated for capital projects.

The budget presentation, given by Shane Martin, who spoke as a district staff member, summarized changes since the first hearing and explained why the district expects a large interim deficit: "The reason for the large deficit there obviously is the, the expenses that have been the revenue has been appropriated 1 year and expenses are gonna be, drawn down in another year. And mainly that is the, is the construction projects," Martin said.

Martin said the district's beginning fund balance was $359,000,000 and projected an ending first-year fund balance of $193,000,000 under the proposed FY26 budget. He said minor adjustments to titles 2, 3 and 4 were incorporated after being received the day of the first hearing and are now reflected in the FY26 numbers. "All that was was title 2, 3, and 4. Those were, as John mentioned in the first budget hearing, those were received the day of the budget hearing. And so those did not have time to get entered. Those were able to get entered in this, budget, and it will be in there for for the board's approval," he said.

Martin highlighted benefit and enrollment changes that affect recurring costs. He said the PHIP allocation increased from $800 to $904 per month per employee ("a total of $10,848 in a year"), and that average daily membership rose by 158 students, generating 11 additional teacher units. He also said the district funds 899 local teacher units systemwide, of which 857 are supported by the local penny sales tax, and that the district employed about 4,655 staff under the proposal.

In a separate financial update, also presented during the meeting, Martin reported year-to-date general fund activity through August 2025: the general fund began the fiscal year with approximately $88,800,000; revenues were near budget at about 94% of the year-to-date target while expenses were at roughly 91%. He noted the district had an earlier reported fund-balance figure of $116,000,000 in one slide and said end-of-year accruals will change the final balance, with a projected year-end fund balance in the range of $90,000,000 to $100,000,000 depending on accruals.

Board members did not take a final vote on the FY26 budget at this hearing; Martin closed the public hearing after inviting questions. "...so, if the board has any questions, I'll take it. If if not, then, then that'll close budget hearing two," he said.

Why it matters: the presentation lays out major capital spending and recurring cost increases that will affect staffing and local funding needs. School officials said the capital portion of the budget is driven by multi-year construction projects, so the district expects higher reported expenses in the short term while revenue and project drawdown occur on different schedules.

Board members asked for additional review and will consider the formal budget item at an upcoming board agenda meeting.