Allegany County board approves superintendent's operating budget, uses $3 million from fund balance
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Summary
The Allegany County Board of Education unanimously approved the superintendent's operating budget for fiscal year 2025'26 after a presentation by district finance staff, voting to use $3 million from the district fund balance to balance the plan amid rising health and utility costs.
The Allegany County Board of Education unanimously approved the superintendent's operating budget for fiscal year 2025'26 at its April 1 meeting after a detailed presentation from district finance staff.
Finance presenter Mr. McKenzie said the draft budget assumes a request to county government of $35,139,284, state revenues near $103 million and a planned withdrawal of $3,000,000 from the district's fund balance to balance the books. "This is a pretty unique year. I still don't know what's gonna happen down at the legislature," McKenzie said during the presentation, noting the budget includes estimates for uncertain legislative action and a teacher pension pass-through payment.
The budget presentation laid out the district's major revenue and expense drivers. Enrollment for K'12 used in aid calculations was reported as 7,635 students. The district recorded increases in several student groups: multilingual learners rose from 38 to 46 (a 21% increase) and the special education population increased by about 11% to 1,462 students, a nearly 22% rise over two years. To address student needs, the budget funds five additional special education teacher positions and expands resources for multilingual learners.
On the cost side, the board heard that transportation expenses would increase by about $90,000, utilities by roughly $265,000, and health-insurance and other fixed charges continue to rise. The presentation said capital projects were reduced by $340,000 to help balance the budget, and summer programs previously funded by CARES funds are being absorbed into the operating budget.
Mr. McKenzie said the proposed budget includes $1,354,195 estimated for the teacher pension pass-back (a pass-through payment), but noted that figure could change as the Legislature finalizes actions: "Latest we've heard is that that number could be about $600,000 less." He told the board the budget meets contractual obligations to the district's bargaining units and attempts to preserve core programs while limiting new recurring commitments.
Board members asked clarifying questions about federal CARES reimbursements and the Community Eligibility Provision (CEP) for school meals; McKenzie said the district had submitted a claim for its last CARES-eligible payment and did not expect the federal repayment actions discussed elsewhere to have a significant effect on Allegany.
After discussion the board moved and seconded approval of the superintendent's operating budget. The motion passed unanimously.
The board will submit the approved operating budget to county government as part of the formal local appropriations process; finance staff said enrollment, state aid estimates and the Legislature's final actions could require future adjustments.
