Muscle Shoals board adopts FY26 budget, approves one-time employee supplement

The Muscle Shoals City Schools Board of Education on Sept. (date not specified) approved the district's fiscal year 2026 budget and passed a resolution to provide a one-time supplement to employees during its regular meeting.

The budget was adopted after a second public hearing in which CSFO Langley reviewed revenue and expenditure changes. "Our state revenues continue to be $24,000,000," CSFO Langley said, and she noted federal Title II funds at $102,131 (a decrease of $21,888 from the prior year) and Title IV funds at $42,769 (an increase of $10,800). The board voted to approve the proposed FY26 budget as presented.

The budget matter matters because it sets the district's revenues and expenditures and determines planned use of capital and federal funds for the coming year. CSFO Langley said total revenues are $45,271,560, total expenditures are $48,596,000 and that the district plans to use $435,115 of general fund balance to help balance the budget. She said carryover funds of $8,594,000 are included and that, after budgeting debt service of $642,000 and $848,000 of capital money, $205,960 remains available for facility upgrades and resurfacing projects.

Board action and major votes

- The board approved a resolution providing a one-time supplement to employees for the fall 2025 semester. The motion was made by Dr. Sauter and seconded by Miss Olmos; the motion carried. - The board approved the FY26 proposed budget as presented. The motion was made by Mr. Wood and seconded by Dr. Stoddard; the motion carried. - The board approved the consent agenda (one vote): financial reports/check register for August 2025; the FY26 five-year capital plan (previously presented at work session); textbook selection committee for 2025–26 for social studies; and acceptance of DCM Project No. 2025628 (HVAC upgrade for the indoor athletic facility) with the lowest responsive bidder meeting specifications identified as JK Johnson. The consent agenda motion carried. - The personnel report (listed in the meeting packet) was approved as presented.

Budget details presented by CSFO Langley

- State revenues: $24,000,000. - Title II: $102,131 (decrease of $21,888 from prior year). - Title IV: $42,769 (increase of $10,800); Title IV funds are budgeted to pay a retired teacher to assist English Learner students with tutoring. - Local funds: presented as unchanged from the prior presentation (figure in packet). - Carryover funds included: $8,594,000 (includes capital carryover and other rollovers received in August). - Debt service budgeted: $642,000. - Capital allocation: $848,000 budgeted for capital, of which $205,960 remains for facility upgrades and parking-lot resurfacing after other allocations. - Total revenues: $45,271,560; total expenditures: $48,596,000. - Fund balance used to balance the general fund: $435,115. - Fund balance as of Oct. 1, 2024: $11,210,000; projected to leave the district with approximately a 3.54-month operating balance at the end of FY26 (CSFO Langley's estimate) and an estimated one-month operating cost of $3,200,000.

Personnel and consent items

The consent agenda — approved in a single vote — included the financial reports and check register for August 2025, the FY26 five-year capital plan, the social studies textbook selection committee for 2025–26, and acceptance of a DCM project bid (DCM Project No. 2025628) for an HVAC upgrade in the indoor athletic facility, with JK Johnson identified as the lowest bidder meeting specifications. The personnel report approved by the board listed multiple items including a resignation for a robotics club sponsor at McBride (Jill McCabe), employment of Kimber Peebles as a shared school counselor between Highland Park and Webster (effective date to be determined), supplemental assignments for central office administrators (Mallory Kinkade, Richard Templeton, Taylor Darden), an unpaid leave for Michelle Woodis (MSMS teacher), a nurse-mentor role for Kelly Word at McBride, and PSAT tutoring assignments at Muscle Shoals High School for Tamara Counts and Holly Wade. Some items in the personnel report were described as "not for board action" (medical leave requests and community ed staffing) and were noted for administrative processing.

Public comment and next steps

No members of the public spoke during the budget hearing on the FY26 proposal, and the board closed the hearing before voting. Superintendent Dr. Holden thanked CSFO Langley and administrators for budget work and said the district plans an "academic roadshow" of presentations by the superintendent and principals to appear at a future work session and potentially to the city council before the end of the mayor's term. Dr. Holden also congratulated Shanetta Smith on her selection as director and president of the Alabama Association of Elementary School Administrators and discussed recent federal advocacy efforts regarding potential federal funding cuts. "There is some conversation in Washington about cuts," Dr. Holden said, and he noted the district's reliance on federal funds to support special-education, 504 services, career-technical programs, transportation and child nutrition programs.

What the board approved: votes at a glance

- Approve agenda as presented — approved (unanimous voice vote). - Approve meeting minutes from 08/26/2025 — approved (unanimous voice vote). - Approve consent agenda (financial reports; FY26 capital plan; social studies textbook committee; DCM Project No. 2025628 HVAC award to JK Johnson) — approved (unanimous voice vote). - Approve personnel report as presented — approved (unanimous voice vote). - Adopt FY26 proposed budget as presented — approved (motion: Mr. Wood; second: Dr. Stoddard). - Approve resolution for a one-time employee supplement for fall 2025 — approved (motion: Dr. Sauter; second: Miss Olmos).

The board did not set an implementation schedule for the employee supplement in the public record; the resolution text and supplement amount were included in the meeting packet but the amount is not specified in the spoken record excerpted in the transcript. The budget, capital plan and contract award will proceed according to normal administrative procedures and the district's procurement rules.