Talbot County board adopts FY26 budget, taps $1.566 million in reserves for projects and health center

The Talbot County Board of Education approved the Talbot County Public Schools fiscal year 2026 unrestricted, restricted and capital budgets at its June 11 regular meeting, voting unanimously to adopt the spending plan after staff presented revisions to revenue estimates and one-time capital needs.

Board members voted to set FY26 total district revenue at about $81.526 million, down from an earlier projection of roughly $86.1 million, and to use $1,566,000 of fund balance for one-time items including auditorium lighting, an activity court at Easton Elementary School and an employee health center.

The budget change reflects three main adjustments presented by district staff: a state revenue estimate that remains uncertain, a $5,072,000 downward revision tied to the county appropriation, and a $260,000 reduction tied to changes in nonpublic tuition reimbursement legislation. In response to local priorities and project needs, the board authorized use of fund balance for three specific items: up to $300,000 to cover additional costs for Easton High School auditorium lighting; a conservative $175,000 allocation for an Easton Elementary activity court; and $280,000 to help open and operate an employee health center for nine months, assuming an October 1 opening date.

Superintendent and staff presentations noted the district expects to end FY25 with just over $8 million in fund balance and, after the FY26 adjustments, project an ending fund balance of about $6.6 million, roughly 8 percent of the next year's operating budget. The district's fund balance policy targets a reserve between 5 and 17 percent.

Budget staff said the revised budget reduces overall revenues by roughly $4.58 million from the budget passed in February but still represents an increase over FY25 operating levels. The FY26 budget also preserves $9.8 million in expected grant revenue (titles, Judy Center funding and other grants) while acknowledging an overall decline of about $1 million in grant funds compared with FY25, some of which were one-time awards or purchases in the prior year (for example, bus purchases and one-time capital projects).

The board-approved plan adds 15 new positions, many funded via county council support or tied to community schools, and includes the district's previously discussed elimination of five positions to realize nearly $500,000 in savings. District staff said the budget also reflects contract costs from recently ratified collective bargaining agreements and other operational savings, such as prepaying leases and some benefits renewals.

On capital timing, staff noted planning for the next major school replacement project would begin in 2031 with an initial educational specifications and feasibility study entry in the capital plan. Board members asked about the scope and cost drivers for the Easton Elementary activity court; facilities staff explained the site work includes protecting geothermal wells, relocating a dumpster enclosure and installing fencing and surfacing, which together increase the project's complexity and cost compared with a simple paved court.

Motion to approve the FY26 unrestricted, restricted and capital budgets was made and seconded at the meeting; the board voted in favor and the budget was adopted.

District staff said they will continue to seek grant windows that could offset some of the proposed fund-balance use and will return with updates to the board as grant awards or additional state guidance materialize.

The budget vote concluded the board's substantive business for the night; personnel and other routine items were acted upon afterward.