JPS finance team outlines FY26 budget assumptions as state appropriations remain unresolved

Chief Operating Officer Earl Burke told the Jackson Public School District board that state and federal uncertainty is shaping the district—s FY26 budget work, and he recommended conservative assumptions while the Legislature had not passed an appropriations bill.

Burke said the regular session closed without a finalized FY26 state budget and that House Bill 1630 and House Bill 1768, measures discussed during the session, did not produce a completed appropriations act. He said department guidance and draft proposals suggest a modest proposed increase in the base student cost and an estimated total education appropriation that the district is modeling into its budget scenarios. "As always, we start with our Jackson Public Schools vision and mission," Burke said during the presentation, then reviewed revenue collections and expenditure controls for FY25.

Why it matters: The district is planning FY26 while key state decisions remain pending. Burke identified several cost pressures the board must absorb or offset: health insurance premiums that the state projects will rise in January 2026, a continued employer increase to the PERS contribution, utility and insurance inflation, and an anticipated reduction in indirect-cost reimbursements tied to federal grants such as ARP/ESSER.

Key facts and district posture: Burke reported that FY25 collections to date are ahead of last year and that expenditures have come in below budget due to hiring controls and other measures; the district had collected roughly 81% of its main operating fund at the time of the briefing. For FY26 planning the administration is budgeting based on a fall 2024 months 2 and 3 enrollment estimate of 17,621 scholars and a conservative planning enrollment of about 16,700 when pre-K is excluded.

Emerging priorities and contingencies: The administration listed planned or funded items for the next fiscal year including three additional professional development days for teachers, continued ERP (enterprise resource planning) implementation with July and January go-live milestones, data-center modernization (approximately $2 million), digital textbooks and device refresh cycles, and continued investment in deferred maintenance. Burke warned that the winding down of federal ESSER funding reduces indirect-cost recoveries that had supported program and operational costs; the district is preparing contingencies to move some program costs to local funds if required.

Board discussion and next steps: Board members pressed for clarity about how building closures and consolidation had affected cost structures and how much of the indirect-cost exposure remains. Administrators said closures produced immediate savings and ongoing cost avoidance but that some indirect-cost reductions tied to federal funding remain a risk. The administration scheduled a public hearing on the FY26 proposed budget at the June board meeting and indicated the second June meeting will include the approval vote.

Source and attribution: Presentation and Q&A with Earl Burke, chief operating officer and finance officer (budget presentation segment).