Madison County Board adopts fiscal 2026 budget, cites enrollment growth and capital projects

The Madison County Board of Education on Oct. 25 adopted its fiscal year 2026 budget during a meeting held at Walnut Grove School, following a public hearing and presentation of revenue and expense projections.

The budget, presented to the board as the proposed fiscal 2026 plan, emphasizes instructional spending, addresses steady enrollment across 30 schools and includes capital outlays to support new and ongoing construction projects.

Board members heard that Madison County Schools operates 15 elementary schools, six middle schools, six high schools and three additional programs and that payroll and benefits are the district’s largest expense. "Instruction and instruction support account for over 83% of our total payroll budget," the presenter said. The presenter also said the district expects a 3.5% increase in operating expenses driven by inflation and staffing needs.

During the hearing, district finance staff outlined the district’s fund structure and revenue mix: a general fund (state and local funds), special revenue funds (federal programs and some local school funds), a debt service fund, capital projects (state capital purchase funds, local bonds and tax dollars) and fiduciary funds (nonpublic local funds such as booster accounts). The presenter said the district has shifted some cash into Treasury bills and negotiated a higher interest rate on an operating account; together those steps are expected to generate about $1,600,000 in additional interest income this year. "Those are yielding anywhere from 4 percent to 4 and a quarter percent," the presenter said.

Board members asked about the long-term outlook for local sales tax revenues and the impact of online sales tax (SSUT). A board member noted that online sales are growing faster than brick-and-mortar sales and that, as discussed in the meeting, the local school system does not receive SSUT revenue directly from the county commission. District staff said they aim to align revenue estimates more closely with year-to-date actuals rather than conservatively underestimating receipts.

Capital projects were highlighted during discussion. Officials said the district currently is funding multiple construction projects and estimated roughly $120 million in ongoing capital work; the presenter described a recent trip to the bond market for $25,000,000 to support those efforts. Specific project mentions included a new wing at Riverview Elementary, a turf field and additions at other sites.

The board approved the budget by motion and voice vote; an individual roll call or numeric tally was not recorded in the meeting transcript. The adopted budget takes effect for fiscal year 2026 as presented.

The board and staff said they will continue public engagement on budget priorities and monitor revenue streams as the year progresses.