Shelby County Schools present $66.4 million budget amendment and propose fund balance assignments; board requests further analysis
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Summary
Superintendent and finance staff outlined a recommended FY‑26 budget amendment increasing all‑funds spending by $66,430,309 and proposed assignments that would reduce the unassigned fund balance to about 19%; board members pressed for a multi‑year analysis and clarification of carryover allocations and planned uses.
Superintendent Dr. Miguel Richmond and district finance staff presented a recommended fiscal‑year 2026 budget amendment and a proposal to assign parts of the district’s general fund balance at the Shelby County Board of Education work session.
The amendment would increase the district’s all‑funds budget by $66,430,309, from $1,952,112,514 to $2,018,542,823, officials said. The presentation broke the changes down by fund: the general fund showed an increase of $72,714,462, the capital improvement fund a decrease of $14,986,261, and federal special revenue (fund 8) an increase of $8,702,108. The staff memo also lists programmatic additions and positions tied to the Comprehensive Coordinated Early Intervening Services (CCEIS) program and other grants.
On fund balance assignment, staff said the district’s current fund balance stands around 23–24 percent, and that the proposed carry‑forwards and assignments would reduce it to roughly 19 percent — still above the board policy target range of 8 to 15 percent. Richmond and finance staff outlined major items proposed for assignment, including carryforward board allocations, deferred maintenance projects, textbook adoption funding and device purchases. Staff cited $18,590,337 for science textbook adoption (of which $16,000,000 was identified for textbooks and roughly $2,000,000 for warehouse handling in the presentation) and a proposed $12,000,000 device purchase to obtain roughly 15,000 devices for high school students if approved.
Finance staff said there are about 53 to 55 deferred maintenance projects underway that the carryover would help complete. Board members asked for greater clarity on carryovers and allocations: Board member Earl Garcia asked if carryover board allocations were one‑year only; staff said the figures were for the prior year only. Board member Morgan McKissick and others asked the finance team to provide a three‑ to five‑year analysis of allocation trends to determine whether recurring needs should be budgeted rather than funded by board allocations.
Board members also raised house‑keeping and planning concerns: questions included whether fund balance assignments would leave enough flexibility for upcoming costs tied to returning schools from the Achievement School District (ASD), the new Frasier High School furnishings and outfitting costs (a board member referenced about $40 million for that item), and potential future school construction costs. Finance staff said the district is monitoring future needs and would provide requested analyses.
The transcript records the presentation and extensive board discussion but does not record a formal roll‑call vote on the budget amendment or the fund balance assignment in the provided excerpt. Staff said they would provide further breakdowns and follow up with the board.
