Hawkins County school leaders present 2025-26 budget draft, flag federal grant delays and facilities needs

Melissa (staff member) presented a draft 2025-26 budget to the Hawkins County School Board that maintains the proposed property tax rate at 2.3177 and allocates the local share across the general purpose, transportation and education capital projects funds.

The draft holds the estimated property tax rate at 2.3177 and shows allocations of 0.5905 to the general purpose school fund, 0.3051 to the transportation fund and 0.0392 to the education capital projects fund, Melissa said. She told the board the draft does not yet include final federal project budgets because those allocations were not finalized in time for the May 1 board meeting and staff will amend the budget later if needed.

Why it matters: the package combines salary-scale increases, reclassifications driven by state reporting requirements and a set of contingent federal and state funding decisions that together shape how much the district will need from reserves and which capital projects can move forward.

Board discussion and key details

Staff described several personnel and salary changes that drive the budget increase. The district adjusted state-mandated certificated base scales upward and increased noncertificated scales by roughly $0.50 per hour, Melissa said. The packet included salary scales for board review. Bus driver pay did not change as a daily rate, but the draft adds 10 paid vacation days built into the schedule; at step 0 that equals about a $740 annual increase if the driver earns all 10 days, a presenter noted.

The district reclassified certain positions to comply with TISA-related reporting. Melissa said several office roles were moved into a data classification because TISA requires periodic, detailed enrollment and course reviews. The board also discussed a compliance officer position created under a Department of Justice (DOJ) agreement; the position was posted and filled after multiple interview rounds, carries a salary cited at about $78,700 and is funded under that agreement for a multi-year term.

Facilities, capital projects and federal grants

The draft reduces the education capital projects allocation, which staff warned could delay or scale back planned five-year projects. Melissa said the capital projects fund has not grown as intended, and shifting pennies among funds in the draft may limit next year’s planned work.

On HVAC at Hawkins Elementary, staff said the federal Department of Education reversed prior approval for about $400,000 in funding to finish the HVAC and window replacement project. Melissa said the district is pursuing a state-level waiver and working with the State Department of Education; if the waiver is not granted, she said the district may need to use fund balance for the outstanding amount. She described supply-chain and labor-related delays that the district argues were outside its control.

Board members asked for cost estimates for two high-school gymnasium roofs; staff said they are obtaining those figures and would share them with the board. The district also reported ongoing arrangements with roofing contractors to patch membrane roofs, noting those repairs may be temporary rather than full replacements.

Solar, reimbursements and fund accounting

Staff explained two different solar-related revenue lines: a pass-through lease rental and a miscellaneous refund category tied to energy credits and rebates. One pass-through amount cited was roughly $352,463 (staff called this a wash because the district remits most of it), while a smaller $42,000 line is the portion the district retains, Melissa said. The district is also exploring relocating future solar installations to parking lots to reduce roof-foot-traffic and leak risk.

Fund balance and timeline

The draft projects drawing approximately $5,000,002.98 from unassigned fund balance to balance the general purpose budget, with additional draws listed for the cafeteria and transportation funds. Staff and board members discussed the large swings that often occur between projected draws and actual year-end results because of conservative revenue and expenditure projections and timing of property tax receipts.

Next steps

Melissa and Matt (staff member) told the board they will update line items as additional insurance quotes, federal allocations and other numbers arrive and will prepare any necessary budget amendments before the June 30 fiscal deadline. The board chair and members discussed the tight timeline for approving a draft budget at the May board meeting so the county commission can meet its posting and review schedule.

Ending

Board members requested follow-up materials, including firm cost estimates for gym roofs and more detailed dollar impacts by salary step for specific positions. Staff said they will provide those figures and update the draft before the board’s May meeting.