Washington County school leaders propose FY26 budget that would use millions in fund balance, pursue teacher-pay mandates and keep free lunch program

Washington County school officials presented a draft fiscal 2026 budget at a board workshop that would rely on millions in fund balance to close a projected gap, incorporate state-driven increases to teacher pay and keep the district-funded universal free-lunch program unless the board or county commission provides more money.

The draft, presented by Brad, chief finance officer, projects revenues and other sources below planned expenditures and would require using several million dollars of fund balance to balance the budget. Brad told the board the revenue totals are based on a 12-month look-back of actual receipts and that one-time reimbursements included in FY25 will not recur, including a roughly $946,000 final reimbursement the district received last year.

Why it matters: The draft budget must be submitted to the mayor by May 1 under the county schedule; the board must decide whether to send the draft as presented, request county assistance or trim expenditures. Board members and staff repeatedly warned that using a large share of fund balance would reduce reserves below the district’s comfort level and force program cuts or larger class sizes next year.

Board members and staff described three central pressures shaping the draft: (1) a state-mandated rise in minimum starting teacher pay that adds roughly $2.7 million to certified payroll in the current proposal; (2) local costs…