Lincoln County Board of Education adopts FY2026 budget, cites $1.2M enrollment-driven revenue drop

The Lincoln County Board of Education on May 27 approved the Lincoln County Schools proposed FY2026 budget and levy estimate in compliance with West Virginia Code 18-9B-6.

The board voted 5-0 to adopt the budget after a presentation from Austin Lucas, the district’s chief financial officer, who said general fund revenue is down roughly $1.2 million primarily because the district lost about 40 students compared with the prior budget year. “We are down roughly about 40 kids compared to last [budget season],” Lucas said.

Lucas told the board the district begins the year with an assigned fund balance of roughly $3.8 million; most of that balance funds over-staff formulas in the budget and is held to cover large, unexpected expenses such as major building repairs. He also said levy revenue is budgeted about $500,000 higher than the previous year because of higher property valuations, while the state aid formula revenue is budgeted about $750,000 less than last year due to declining enrollment.

The CFO said the proposed special revenue fund (Fund 61) is budgeted at about $7 million and will likely increase when new grants are confirmed. Child nutrition spending and related revenue are budgeted up by about $300,000; Lucas said a state template requires the district to budget a roughly 6% increase in food-service line items even if actual spending is not expected to rise by that amount. He also said special-education expenses are up about $1 million year to year, driven by additional staffing and equipment needs not fully covered by state or federal aid.

Board members asked for follow-up financial statements through April at the next meeting and thanked staff for work on fleet replacement and other areas that affect levy-based funding. After discussion, a motion to approve the FY2026 budget and levy estimate was made by Mr. Cartwright, seconded by Mr. Mosteller, and carried 5-0.

The board also noted it will submit the adopted budget to the state department of education; Lucas said if the state finds an issue the district will receive corrections and resubmit. The board directed staff to provide updated year-to-date financial reports at the next meeting.

Budget documents presented to trustees include line-item and FTE comparisons; Lucas pointed to a change from 413 FTE in the current general fund inventory to about 404 proposed FTE for FY2026 and said maintenance, transportation and capital lease lines (including financing for Duval School and the high school athletic facility) are shown in the packet.

The board passed the budget vote as part of the meeting’s finance agenda and then proceeded with the remainder of the agenda.