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Board approves FY26 tentative budget with half‑mill increase after weeks of debate
Summary
City Schools of Decatur trustees voted to adopt a tentative FY2026 budget that includes a 0.5 mill property‑tax increase (about $1.5 million) to cover staff salary increases, after members debated larger increases, possible cuts and use of fund balance.
City Schools of Decatur trustees approved a tentative fiscal year 2026 budget on April 15 that adds a 0.5 mill property‑tax increase, estimated at $1,500,000, to help cover planned staff salary increases.
The measure passed after an extended public and board discussion about deficit spending, use of reserve funds and options for balancing recurring personnel costs. Trustees said the tentative vote leaves time for community feedback and for state and digest numbers to firm up before the board adopts a final budget in May and sets a final millage rate in June.
Why it matters: the adopted tentative budget projects total revenue of roughly $106 million and expenditures of about $110.8 million; without additional revenue the district would draw on existing fund balance to cover the gap. Board members and administration repeatedly warned that recurring salary increases funded out of reserves would be unsustainable long‑term.
Board debate centered on three options: cut recurring personnel and programs, increase the millage to raise recurring revenue, or run a deficit and use fund balance. Several trustees urged transparency and direct community engagement before any final decision on taxes.
City Schools of Decatur Chief Financial Officer (CFO) Doctor Brown told the board the tentative budget anticipates a 5% increase in local property tax revenue and budgets a minimum 3% compensation increase systemwide, with larger targeted adjustments for specific job families. The budget also reflects a state midterm QBE allotment reduction tied to a small decline in enrollment and includes a one‑time state safety and security grant that will be carried into FY26.
Opposition and amendments: an earlier board motion to add a full 1.0 mill increase (about $3 million) failed after mixed votes and an abstention. Trustees then debated a smaller increase. Vice Chair Ust moved, and Board Member Johnson Davis seconded, a modification that added a 0.5 mill increase to the tentative budget; that motion passed 4–1 (Johnson Davis aye; Vice Chair Ust aye; Board Member Herndon nay; Board Member Anderson aye; Chair Soltan aye).
Next steps: the district will hold public budget hearings (virtual hearings scheduled May 8 and a final adoption scheduled for May 13) and will publish avenues for public feedback. Administration said digest projections and any additional state grant awards could allow the board to reduce or rescind a planned mill increase before final adoption.
Board members and staff emphasized that the tentative budget is not final, and that approving the tentative budget with a modest mill increase preserves options while the district collects additional information ahead of the final vote.
