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Board hears FY 2026 budget projection; district projects roughly $2.7 million gap before grants
Summary
At a public budget hearing, district finance staff outlined the FY 2026 revenue and expenditure projections, citing increases in health insurance and TRS employer rates as primary cost drivers and a projected $2.73 million gap before anticipated safety grant offsets.
The Buchanan Board of Education held the first public hearing on the Coffee County School System’s proposed fiscal year 2026 budget Thursday, where district finance staff reviewed revenue projections, major expenditure drivers and next steps in the adoption timeline.
District staff said projected total revenues for FY 2026 reflect increases in local tax receipts, other local revenue and state allotments, including a tentative QBE allotment. The presenter said the allotment sheet showed an overall increase but that equalization funding decreased by $1,687,066 compared with the prior expectation.
On the expenditure side, staff identified employer benefit increases as a primary driver of budget growth. The teacher retirement system (TRS) employer rate was reported to move from 20.78% to 21.91% for FY 2026, and employer health insurance rates were said to rise to $1,885 per month ($22,620 per year) for certified and classified employees. The presenter reported benefits overall increasing by $2,514,249, with $1,653,340 attributed to health insurance and roughly $700,000 to TRS increases.
Staff summarized additional operational cost increases after ESSER funding sunset, noting that some software previously paid with COVID-era funds will move into the regular operational budget (for example, Renaissance tools used for literacy). The FY 2026 budget total was presented as $92,945,704, with a projected gap of $2,732,521 between expenditures and revenues. Staff said they expect to receive roughly $500,000 in safety grant funding (as in FY 2025) that could reduce the gap to about $2.1 million and described ongoing reviews of positions and transfers to lower the deficit before final adoption.
District staff outlined the FY 2026 public timeline: a second public hearing set for May 8 and a planned called meeting in May to adopt the budget and upload it into the accounting system.
Board members closed the hearing after no public comments and said more information will be provided at the next hearing.
