Oak Ridge Board reviews proposed FY 2026 budget, schedules final vote May 19

At its May 5 meeting, the Oak Ridge Board of Education heard a presentation on the districts proposed fiscal year 2026 budget, which proposes roughly $83 million for the general-purpose fund, a new consolidated salary schedule and targeted staffing changes. The presentation was delivered by district administrators Dr. Borchers, Kelly Van Dyke and Mr. Thacker.

The budget proposal would increase overall spending about 8.12% over the FY 2025 amended budget, fund a minimum 5% pay increase for all staff, and include one-time device-replacement spending and targeted new positions. "Our number one core value is obviously students first and when we put this budget together, we had that in mind," Dr. Borchers said while introducing the proposal.

Why it matters: The proposal frames pay increases, a new career pathway and ongoing capital work as the district plans for enrollment growth and the final year of several COVID-era grants. Van Dyke told the board the district expects an estimated $1.5 million increase in state TISA funding for FY26 and is budgeting to draw on fund balance for one-time costs.

Key elements of the FY 2026 proposal

- Size and broad funding assumptions: Administrators presented a proposed all-funds budget of about $83,000,000 for the general-purpose fund, with federal grants projected at about $4.6 million and cafeteria (child nutrition) funding at roughly $3.6 million. The presenters said some federal COVID-era grants have expired, and no large increases in federal funds are assumed for FY26. Van Dyke said the district estimates about $1,500,000 in additional TISA funding for FY26 based on the states March estimate.

- State funding details: The presentation referenced the states TISA funding model, noting a TISA base rate of $7,295 per student for FY26 and a 25% "hold harmless" provision for economically disadvantaged counts that applies statewide.

- Pay and benefits: The recommended salary schedule consolidates multiple schedules and provides a 5% minimum pay increase for all staff. The budget assumes a roughly 4% increase in health insurance costs and a 5% increase for dental insurance; the licensed retirement contribution rate from the state is projected to decrease per state guidance.

- Staffing changes: Proposed additions include a teacher at Glenwood Elementary (driven by enrollment), a teacher for a newly launched nuclear pathway at Oak Ridge High School, a districtwide nurse and an additional special-education teaching assistant (TA). Administrators said one special-education TA position at the high school will be funded from federal dollars; some other TA positions are being eliminated. The presentation said 30 students are currently enrolled in the new nuclear pathway.

- One-time and fund-balance items: The district plans to use $1,200,000 set aside for device replacement and just under $5,000,000 of undedicated fund balance for FY26. Van Dyke said the district ended FY24 with roughly a 17% fund balance, expects to end the current year around 1819%, and projects an FY26 year-end of about 12.8% after planned uses. She noted the Government Finance Officers Association (GFOA) recommends a 10% fund-balance target.

- Capital and facilities: Administrators described ongoing cooperative capital work with the City of Oak Ridge, including projects at Blankenship Field and the Oak Ridge Baseball/Softball Complex and roof work guided by a 2018 Roof Connect evaluation. They discussed potential future phases of an energy services/ESG (ESCO) project that could target Oak Ridge High School and Glenwood Elementary HVAC systems.

- Career pathways and partnerships: Dr. Borchers highlighted a new nuclear pathway to align with local employment trends and partnerships with Y-12, Oak Ridge National Laboratory (ORNL), Roane State and the University of Tennessee. "We have to educate our families, our students, our staff about what jobs exist out there in this field," he said.

Questions, next steps and board direction

During public comment an audience member asked whether a one-time $2,000 teacher bonus reported in recent news is tied to the states voucher bill and whether Oak Ridge teachers would be eligible. Dr. Worshirts said the district plans to prepare the resolution required by the state legislation and place that resolution on the May 19 board agenda so eligible staff can receive the payment; he said the board will state it does not support vouchers while still filing the required paperwork to make staff eligible. "We will write that resolution and certainly make it known that we don't support vouchers. But in order for our staff to be available to get those $2,000, we will do... So we'll do that," he said.

Administrators also reminded the board and public that the budget will receive a line-by-line review at a special board work session the following Monday, with a first reading then; the regular May 19 meeting is scheduled for the second reading and anticipated adoption of the FY26 budget. The presenters noted the city council budget schedule: the district expects to transmit the adopted school budget the evening of May 19 and the City Council work session is set for May 20, with the city's first and second readings currently scheduled for June 2 and June 9, respectively.

No final budget vote was taken at the May 5 meeting. The only formal vote on the May 5 agenda was approval of the meeting agenda, which passed unanimously after a motion by Dr. Hartman and a second by Ms. Craven.

Ending: The board will reconvene for a line-by-line budget review at a special work session the following Monday and for a second-reading/adoption vote at its May 19 meeting.