Tuscaloosa City Schools’ finance staff told the board on Jan. 14 that the district saw small increases in sales tax and property tax receipts for October 2024, but remains under a deficit budget and is planning reductions in the coming budget cycle.

“Mister chairman, we are looking tonight at the first month of our FY25 fiscal year,” the finance presenter said, noting an uptick in sales tax revenue compared with October 2023 and the first property tax receipts after collections began Oct. 1. On sales tax, the presenter said the month-over-month comparison was a positive sign; property tax receipts were described as a “good healthy number.”

The presenter characterized the general fund as slightly below budget after one month—7.43% of expenditures versus an 8.3% benchmark for a single month—and reiterated that the district is operating with a deficit budget this year.

Board members and staff discussed state funding and future budget planning. The presenter said district leaders expect a “healthy, supplemental appropriation” from the state but characterized overall revenue as flat over the past year. Staff also flagged potential changes in state funding models that, if passed, are expected to preserve each system’s current base funding while increasing the statewide pool.

On expense management, staff told the board they expect attrition-driven savings to appear later in the year and previewed school-level allocation work that will begin in late February or March. “What we’re looking at is about a 4 or 5% cut to the budget,” the presenter said. “So it's about a 4 a half, 5% reduction.” A district official added that while painful, the scale is substantially smaller than larger hypothetical cuts discussed in the community.

The presenter also said the child nutrition program “is doing well” and will be the subject of a one-page drilldown in the next report.

No formal board action was taken on the financial report; the item was informational and followed by board questions.