Charleston County proposes FY 2026 budget as revenues run ahead of plan; charter payments climb

Charleston County School District staff presented the proposed fiscal 2026 budget to the board committee of the whole on April 7, highlighting stronger-than-expected revenue collections and several budget choices the board could act on before final adoption.

The proposal trims reliance on one-time reserves while adding recurring personnel costs and an $8.2 million increase in payments to charter and partnership schools. Staff also outlined a schedule that would bring first reading to the board on April 28, with a special-called Audit and Finance Committee meeting set for April 24 and a second reading and public hearing planned for May 19.

Why this matters: The budget frames how the district will fund teacher and classified pay increases, weighted student funding (WSF) expansion and other priorities while the growing share of payments to charter and partnership schools now exceeds 10% of the general operating fund.

Mister Prentice, staff member (budget presenter), told trustees that the district’s revenues “are coming in strong this fiscal year,” a trend staff used in the FY 2026 projection. He said the district budgeted a $63,000,000 use of fund balance to balance FY 2025; about $20,000,000 of that was ESSER sustainability funds earmarked to help implement the weighted student funding program. “We budgeted $63,000,000 in a use of fund balance to balance the FY '25 budget,” Prentice said.

On the revenue side, staff reported particular growth in local sources and some increase in state revenues, though the budget uses conservative estimates for state recurring funding. On the expenditure side, personnel and benefits are up by 8.27% in the FY 2026 proposal; that change includes teacher pay increases and a 3% increase plus step movement for other staff.

Charter and partnership school payments are a major line item. Prentice said the FY 2026 budget includes an additional $8,200,000 to meet obligations under the state-prescribed per-pupil formula and existing partnership agreements. “We need an additional $8,200,000 to fulfill those obligations,” he said. Staff noted that charter payments are now more than 10% of the general operating fund and flagged this as a trend the board should monitor.

Staff also highlighted several budgeted program changes and cost offsets: - Kaleidoscope employee tuition: The district proposes lowering the staff tuition rate for the Kaleidoscope after-school program from 80% of full tuition to 50%, a change staff estimated would cost $585,000 at current enrollment and be absorbed by the expanded-learning Kaleidoscope fund. - Employee daycare: The proposed budget includes funds to add an additional employee daycare site. - Insurance savings: After a review and re-brokering exercise, staff reported about a $1,274,000 premium reduction driven by market changes and an audit of insured replacement values. The audit reduced insured values by roughly $80,000,000 and generated about $500,000 in premium savings; staff used part of that to add $5,000,000 in excess liability coverage.

On forecasting, staff said the budget packet will include a multi-year projection that currently covers FY 2026 through FY 2029; trustees asked whether the model could be extended to FY 2030. Prentice said the district will add a FY 2030 column to the five-year projection after the FY 2026 budget is adopted and the model is finalized.

Next steps and board process: Prentice said the Audit and Finance Committee will hold a special called meeting April 24 to review the budget book and formally refer the budget to the board. The board is scheduled for first reading on April 28, with a possible interim update at the May Audit and Finance Committee meeting and a public hearing and second reading on May 19.

Trustee questions during the budget presentation focused on the timeline for multi-year projections, how the district would respond if revenues weaken, the structure and frequency of insurance reviews, and the treatment of charter school fund balances. Several trustees asked for more detail in the budget book; Prentice said the book would be distributed to committee members before first reading.

The district did not adopt the budget at the committee meeting; staff presented the proposed FY 2026 budget for committee review and outlined the referral and adoption timetable.

Ending: The board will consider the FY 2026 budget at first reading April 28 after the April 24 Audit and Finance Committee review; trustees and staff indicated they would review the budget book and return with questions before the May 19 second reading and public hearing.