Oak Ridge Board reviews $83 million FY‑26 budget proposal, plans teacher bonus resolution

OAK RIDGE, Tenn. — The Oak Ridge Board of Education on May 5 reviewed a proposed fiscal year 2026 budget of about $83 million that would fund a districtwide minimum 5% pay increase, add several staff positions and draw on fund balance and one‑time device‑replacement funds.

Dr. Borchers, a board presenter, opened the presentation and said the district kept students first when preparing the proposal: "Our number 1 core value is obviously students first," he said. The proposal sheets presented by Miss Van Dyke include a recommended consolidated salary schedule, staffing additions and capital plans and assume increased state TISA funding and modest growth in sales and property taxes.

The proposed general purpose budget is about $83,000,000. Other line items presented included approximately $4,600,000 in federal grants, about $3,600,000 for the cafeteria program and roughly $570,000 for funds that largely run the family resource center and extended childcare program. The presentation noted the district would use $1,200,000 from a device‑replacement fund and just under $5,000,000 of undesignated fund balance to support FY‑26 spending.

Why it matters: The proposal would increase recurring personnel costs (a new consolidated salary schedule with a minimum 5% pay increase for all staff), add positions tied to enrollment and programs, and draw down reserves. Board materials project the district ending FY‑26 with a fund balance of about 12.8%, below the current projected 18–19% but above the Government Finance Officers Association recommended 10%.

Key program and staffing proposals outlined in the presentation include one teacher at Glenwood Elementary (enrollment driven), one teacher for a newly launched nuclear pathway at Oak Ridge High School, a district‑wide nurse and an additional special education teaching assistant. The presentation also listed the elimination of a couple of positions and one special education TA at the high school that will be paid from federal funds.

The district said the nuclear pathway — a career pathway created in partnership with Y‑12 and Oak Ridge National Laboratory and local higher‑education partners — currently has 30 students enrolled; the FY‑26 request would fund an additional teacher to expand the class.

Revenue and assumptions cited in the presentation include the state's TISA base rate of $7,295 per student and a 25% hold‑harmless provision for economically disadvantaged counts in FY‑26; an estimated $1,500,000 increase in state funding compared with FY‑25; continued increases in property and sales tax revenue; and continued sunsetting of COVID‑era federal grants. The board was told dental insurance is budgeted to rise about 5% and health insurance about 4% for FY‑26; the licensed retirement contribution rate from the state is projected to fall.

On one‑time pay: An audience member asked whether a planned one‑time teacher bonus was tied to a recently adopted voucher bill. Dr. Forshertz, a board member, said the district plans to put the resolution required for teachers to receive the $2,000 payment on the May 19 board agenda and that the board will "write that resolution and certainly make it known that we don't support vouchers." He said the payout is expected in July if the resolution is adopted.

Capital and facilities items discussed included ongoing cooperative projects with the city such as work at Blankenship Field and the Oak Ridge baseball/softball complex, a multi‑year roof replacement schedule informed by a 2018 Roof Connect evaluation, and the possibility of a phase‑3 energy‑services (ESG) project focusing on aging HVAC equipment at Oak Ridge High School and Glenwood Elementary.

Next steps and schedule presented to the board: a special work session with a line‑by‑line budget review next Monday; first reading of the budget at that session; a May 19 regular board meeting for second reading and adoption; and subsequent city council budget readings in late May and June as the district and city coordinate capital contributions.

Discussion versus action: The May 5 meeting was a presentation and review; no FY‑26 budget vote occurred at the meeting. The board did formally approve the meeting agenda at the start of the session. The board also agreed in discussion to place a voucher‑related resolution on the May 19 agenda to enable staff members to access the $2,000 payment if they qualify.

Board members and staff asked for follow‑up detail to be provided during next week's line‑by‑line review, and presenters said they will monitor revenues and federal funding allocations as they are finalized.

Ending: The board adjourned after confirming the schedule for the line‑by‑line review and other upcoming meetings.