Mid‑Del school board approves $165.4 million FY26 budget as enrollment drop trims state aid

The Midwest City‑Del City Public Schools board on Tuesday approved the districtFY26 budget, a $165,400,000 appropriation for all governmental funds, after a public hearing in which district finance staff warned that falling enrollment had reduced state aid and that some spending pressures — notably personnel and insurance — remain unresolved.

At the hearing Jacqueline Woodard, the districtfinance staff member who presented the budget, said the district projects a $2,300,000 decrease in state aid for FY26 because enrollment declined in the 2025 school year. Woodard said one-time federal ARP funding has expired and districts should plan for flat federal allocations for the coming year.

Why it matters: State aid is a large portion of the general fund for most Oklahoma districts; a multi‑year enrollment decline can reduce per‑pupil funding and force tradeoffs between staffing and programs. Woodard told the board the district will return in the fall with a required budget update after ad valorem valuations and state aid are finalized, per the Oklahoma School District Budget Act.

Board members and the superintendent emphasized the districthas retained strong credit during the uncertainty. "Despite revenue challenges and fiscal uncertainties, the district has maintained its Moody's AA credit rating," Woodard said, citing the rating as evidence of "strong budget management." Dr. Cobb, the superintendent, and several board members praised the budget presentation for clarity and called the districtfinancial position "stable" for the start of the school year, with the caveat that negotiations with certified staff were not yet finalized.

Board members asked whether the district might have to return to reapprove adjustments after teacher contract negotiations conclude; Woodard confirmed the district is required to bring a budget update in the fall once final assessed valuations and state aid are known.

Vote: A motion to approve the FY26 budget passed unanimously. Doctor Kirk, Miss Schultz, Miss Grant, Doctor Daniel and the board chair each voted "aye." The board moved immediately from the hearing to a formal approval vote.

Details and context: The presentation listed several items driving increased expenditures: step increases and negotiated salary adjustments for personnel, higher property insurance estimates and increased custodial contract costs. Woodard said FY26 expenditures are slightly higher than FY25 estimated actuals primarily because of personnel. The presentation also noted that elevated interest rates in FY25 produced stronger investment returns than projected.

The superintendent and finance staff repeatedly cautioned that revenue projections are conservative by design; historically the district has collected more revenue and spent less than budgeted, which provides some cushion. Woodard said the district targets a year‑end general fund balance in a range the board has discussed previously and will monitor midyear adjustments, particularly if first‑quarter enrollment reports change state aid at the January midterm adjustment.

Next steps: The board will receive a fall budget update to reflect certified negotiations and final assessed valuations. Woodard said staff can absorb the start of the year but will bring amendments as needed once revenues are clearer.