Enterprise City Schools board reviews FY2026 budget with $48.3 million ending fund balance

Enterprise City Schools staff presented a proposed fiscal year 2026 budget that projects an ending fund balance of $48.3 million and asked the board to approve the spending plan that begins Oct. 1, 2025. The presentation, given during a September budget hearing, outlined revenue sources, planned capital projects and personnel funding changes tied to enrollment.

The presentation said the $48.3 million projected ending balance includes roughly $35 million in the general fund, $3.6 million in special revenue and $7 million in capital projects. “This budget could not be done without these three ladies,” the district’s budget presenter, Mr. James, said, thanking Emily Crowell, Terry Morgan and Mandy Waters for their work on the plan.

District staff told the board most income—about 60%—will come from the state, with about 26% local and 14% federal. Staff noted that the district’s official enrollment count for state funding is the 20‑day‑after‑Labor‑Day snapshot; current, preliminary numbers show a decline of 95 students compared with last year, which would reduce some unit-based funding if that number holds.

That change in average daily membership affects staffing units. The presenter said the district lost “a half of a unit of assistant principal funding” but gained 1.91 teacher units for a net increase of 1.41 teacher units in the system, and emphasized the October snapshot determines final allocations to the state.

Capital spending and debt were highlighted as drivers of the higher expenditures projected for 2026. The presentation identified about $5.9 million remaining to pay on the indoor practice facility and said capital outlay will also fund ongoing and upcoming projects. The district’s 2024 capital warrant was described as a 20‑year bond with a payoff date in 2044; as a bond issuance, staff said it cannot be prepaid until it reaches the 10‑year mark without refinancing or other actions.

On fleet renewal, staff said the district has a little over $2 million on hand in the fleet account and plans to use approximately $515,000 plus some of the existing balance to buy six buses this year. All route buses are on fleet renewal and are described as “10 years old or newer”; spare buses are not on fleet renewal and therefore are not eligible for the same funding treatment.

Staff outlined several program-specific federal and state funding sources. The presentation described a new state appropriation labeled the RAISE Act, which combines four prior state funding pots—gifted, poverty, English Learner and ESL—into a single appropriation, and said decisions on spending that combined pot will require coordination among previously separate program directors. The district also reported small increases to Title I and Title III allocations and described how Title II, Part A class-size reduction units are assigned to specific schools and cannot be used for first‑year teachers.

Child nutrition was described as an ongoing funding challenge. The presenter said the program’s projected ending balance is $481,000, equal to a one‑month reserve required by policy, and observed that “everything else to child nutrition is a money pit,” adding the only consistently profitable portions are summer feeding and supper programs.

Staff also summarized insurance and retirement cost increases: the district’s per‑employee insurance cost rose from $9,600 to $10,848 (an increase the presenter described as roughly $104 per month per employee), and retirement contribution rates rose to 14.57% for tier 1 and 13.61% for tier 2.

During the hearing board members asked clarifying questions about how teacher units are calculated, staffing shortages among bus drivers and the mechanics of the RAISE Act allocation. Staff replied that unit funding is calculated from the state snapshot after Labor Day and that bus‑driver shortages were in part due to health‑related leaves. The presenter and other staff identified vacancies for two special‑education aides at Holly Hill Elementary and said the district is actively trying to fill those roles.

Dr. Thomas recommended the board approve the FY2026 budget as presented. The board subsequently moved to approve the budget during the same meeting.