Jackson Public Schools outlines preliminary FY26 budget amid state funding uncertainty

Jackson Public School District officials presented their preliminary fiscal year 2026 budget assumptions and timeline, warning the board that state and federal funding uncertainties could require program adjustments.

The district’s chief operating officer and finance officer, Earl Burke, told trustees the state legislature closed its regular session without an approved FY26 appropriations bill and that the Mississippi Department of Education has issued guidance the district is using to form assumptions. Burke said the legislature had proposed an increase in the base student cost of about $147 per pupil and proposed total education funding (including pre-K) of roughly $2.9 billion, but the lack of a signed appropriations bill leaves those figures uncertain.

Why it matters: The district’s planning assumptions affect staffing, insurance budgets, facility maintenance and students’ services. Officials said health insurance rates and employer retirement contributions will add materially to district costs, and the potential loss of federal indirect-cost recoveries tied to expiring ESSER/ARP dollars could shift more operational expense onto local funds.

Details of the presentation: Burke said the district appropriated $231 million for FY25 and had collected about $194 million (roughly 84 percent) through April, leaving about $36 million uncollected at that point. He reported FY25 budgeted salaries of about $109 million and fringe benefits budgeted at about $48 million. For FY26 planning the district is using a projected enrollment of 17,621 students (months 2–3 count reported earlier) and said it will budget conservatively without pre-K, estimating roughly 16,700 students and budgeting at about 96 percent of that figure (16,713).

Burke listed other inflationary pressures the draft budget accounts for: an employer health-insurance increase described in the presentation as rising from about $482 to $513 per employee in January 2026 (a roughly $31 increase), a continued 0.5 percent employer PERS contribution increase, utility cost increases (an average forecast cited at 13.3 percent), rising workers’ compensation and liability insurance, and higher diesel and fuel estimates for transportation.

Officials also highlighted planned investments: three additional professional-development days for teachers, continued multi-year commitments to deferred maintenance, a second year of teacher and staff device refreshes, an ERP accounting and human-capital system rollout (accounting tools scheduled for July 1, payroll/HR tools in January), a $2 million data center modernization placeholder and continued spending on digital textbooks. The district said it has set aside liquidation funds to cover potential shortfalls if federal reimbursements do not materialize.

On indirect-cost recoveries: Burke and Superintendent Green told trustees the district benefited from drawing indirect costs from large federal grants (ARP/ESSER), which supported some operational items. As those federal streams phase down, the district expects a reduction in indirect-cost recoveries and said some services or professional development may need to be covered by local funds or reduced.

Board questions and next steps: Board members asked for more detail on the extent to which school closures and consolidations had already offset indirect-cost losses, and whether the district can sustain pre-K if state funding is changed. Burke said closures produced one-time savings and ongoing cost avoidance but that some indirect-cost reductions remain possible if federal funding declines. He said the administration is not anticipating losing the district’s pre-K program and will use other available funds if necessary, but is monitoring legislative action closely.

The district plans a public hearing on the proposed FY26 budget at the June board meeting (first presentation) with final approval to follow at the subsequent June meeting, pending clarification from the legislature and the Department of Education.

Quote: “There’s a lot of uncertainty out there in the educational universe,” Earl Burke said during his presentation, summarizing the fiscal landscape officials used to form the draft budget.

Provenance: topicintro excerpt: "Mister Earl Burke, our chief operating officer and finance officer, to join us and discuss our budgeting process for the 2526 school year." (transcript block beginning at 676.515). topicfinish excerpt: "So board members, this was, given the fact that we've not had the legislative, decisions on the appropriations bill..." (transcript block ending near 1443.2001).