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Tuscaloosa City Schools reviews FY2026 proposed budget; financial dashboard shows reserves and spending trends
Summary
At a public meeting, district finance staff presented a financial dashboard and the proposed FY2026 budget (first reading), reporting a projected $26 million year-end reserve and describing revenue and expenditure trends that will shape the final budget at second reading.
Tuscaloosa City Schools finance staff presented a financial dashboard and the proposed fiscal year 2026 budget at the board’s public meeting, reporting that the district expects a projected ending reserve balance of approximately $26,000,000 and that general administrative expenditures across all funds are 3.8% of total spending.
The presentation, delivered by Mr. Duke, covered the financial report through June 30 and the proposed annual budget for Oct. 1, 2025–Sept. 30, 2026. “It is my privilege and honor to bring the financial report through June 30, our ninth month of the year,” Duke said as he opened the financial review.
Why it matters: the proposed budget will be considered at second reading next week; the district’s use of reserves, revenue trends such as sales- and car-tag taxes, and one-time and recurring state funds will determine final staffing and program decisions.
Duke highlighted three items: a flattening of sales tax receipts over recent years, instructional spending that comprises about two-thirds of the general fund, and low general administrative expenditures at 3.8% (the state recommendation is 5%). He told the board the district had met its budget target for property tax collections and expected to meet its car-tag revenue target of about $3.1 million. He also noted the influence of state sales tax changes and SSUT on local sales-tax revenue.
On revenues, the presentation showed the state foundation program as the largest revenue source, described in the slides at about 46% of total revenues; local sources were shown at about 42% and federal funds at about 12%. Duke said enrollment (average daily membership) has been increasing and that drives state foundation funding.
Duke described three new or notable funding items that affected the FY2026 proposal: a legislative “advancement technology fund” (one-time money), and the RAISE Act (recurring funding). He said Tuscaloosa City Schools qualifies in four of the five RAISE categories and listed allocations on the slide, including approximately $1,100,000 for poverty and $908,000 for special education—items Duke said together produced a net increase to the district of about $1,700,000.
On expenditures, Duke said the district is tracking below the nine-month target (72.6% spent versus a 75% target). He noted a high auxiliary-services percentage (81.9%) driven by recent bus purchases that he expects to normalize by year end. He also described that two-thirds of general fund expenditures are salaries and benefits, with teachers making up the largest share.
Duke summarized the proposed budget by saying it “strategically pulls from a previously built up reserve to project a 2 month ending reserve balance of approximately $26,000,000 at the end of FY 2026,” a level he said is about a half-month above the board’s 1.5-month reserve policy and about $13,000,000 above the state-required one-month reserve.
The board treated the document as a first reading. The board chair stated the second reading is scheduled for “next Tuesday, the ninth,” when the board will be asked to approve the budget. No final vote on the budget occurred at this meeting.
The presentation materials, Duke said, include the state-required summary forms that the district will submit to the Alabama State Department of Education.
