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District officials present proposed consolidated budget, forecast and capital project request to county
Summary
The district presented a proposed FY26 consolidated budget with a 2% cost-of-living adjustment, a $50,000 starting teacher salary and a $10.825 million county capital request; officials also reviewed FY25 federal and state budget amendments.
Jeff Taylor, chief financial officer for the Montgomery County School System, presented the district’s proposed consolidated budget and several FY25 budget amendments to the board.
Taylor said the proposed FY26 budget includes a 2% cost-of-living adjustment for employees (down from a previously considered 2.5%) and raises the starting teacher salary to $50,000 to meet state requirements and local competition. He said the 2% COLA carries a cost of about $7.2 million and the step increases for eligible employees are estimated at about $5.56 million. Taylor said an 8% increase in medical premiums added approximately $3.3 million to projected personnel costs, and new and changed positions are estimated to cost $1.5 million. A scheduled market analysis adjustment is listed at about $385,000.
On revenues, Taylor presented totals for the general purpose fund: expenditures of $456,058,000, revenues of $428,530,692 and an available fund balance of roughly $27.5 million to cover the gap. He described the revenue mix as approximately $281.6 million from state sources, $138.7 million in local revenues (property and sales tax), $2.0 million in federal revenues and $6.2 million in nonrevenue sources. Taylor noted a $12.2 million increase in TISA (state) funding and said the district is adjusting after ESSER federal funds ended.
Taylor reviewed specific cost lines: $1 million proposed for paving (with county highway department assistance); $2.751 million estimated to replace 16 school buses; $762,000 estimated increase for property and liability insurance premiums; $303,000 added for special-education extended school year stipends and benefits; $410,000 for software and technology increases; and other line adjustments across instructional, student services and operations categories. He said federal project revenues decreased sharply with many grants expiring, and that the district plans to move $5 million in operating transfers from federal fund balances back to the general purpose fund for cash‑flow purposes.
On capital needs, Taylor described a county funding request of $10,825,000 for projects including replacing unit ventilators and BAS system work at Woodlawn Elementary (about $2.5 million), a set of system‑wide site projects (about $4.84 million) and a roof restoration at Montgomery Central Middle (about $3.5 million). He said the county cannot fund all projects at once and offered to meet individually with board members for further detail.
Board members asked about forecasting and sensitivity to rising fuel and goods prices; Taylor said departments submit estimates but adjustments may be necessary during the year. No formal vote on the consolidated budget or the amendments was taken at the meeting; the presentation functioned as an overview and first review.
