McCreary County Board of Education approves tentative $24 million 2025-26 budget

The McCreary County Board of Education on May 20 approved a tentative budget for fiscal year 2025-26, estimating about $24,000,000 in revenues and a budgeted contingency of roughly $1,260,000 (about 6%). The vote was taken at the board’s regular meeting at the district central office and carried on a roll call that recorded “Aye” from the chair and multiple board members.

Board finance staff presented the revenue and fund-by-fund breakdown that will form the district’s working budget. The presentation said the district expects about $16,600,000 from SEEK state funding, roughly $2,000,000 in property tax revenue (with $364,000 of that amount being transferred to the building fund for bond payments), about $400,000 from vehicle taxes and roughly $800,000 from utility taxes. The district reported a general fund balance of approximately $10,595,000 and federal food-service reimbursements of about $323,000.

The board was told that major expenditures driving the budget are staffing and associated benefits, insurance and operating costs. The presenter said the district is “estimating approximately a 25% increase for this time of year” in certain costs (as stated in the meeting). Capital and bond funds were explained by fund: the capital outlay fund (Fund 310) receives approximately $225,000 of SEEK money, which is transferred at year end to Fund 400 for debt or service payments; Fund 320 (state bond payments) receives nearly $1,000,000 in state support and additional local property tax transfers (about $346,000) to cover bond obligations. Food service operations were reported as near break-even, with staff and operating costs driving expenditures.

Superintendent communications earlier in the meeting noted the district used an emergency non-traditional instruction (NTI) day after storm-related power outages; administrators said the district obtained Kentucky Department of Education (KDE) approval for that NTI day and is assembling documentation to submit to KDE.

Board members and staff emphasized that the May approval is the district’s tentative budget: by law and practice the tentative budget is submitted to KDE by May 30 and can be revised before the working (final) budget is adopted later in the fiscal year, once final attendance and grant figures are known. The presenter said final student-attendance (Average Daily Attendance/SAR) and grant figures will be available later in the summer and will be used to finalize the budget.

The motion to take action on the tentative 2025-26 budget was moved, seconded and approved by voice/roll call during the May 20 meeting.