Tuscaloosa City Schools finance chief: revenues tracking close to budget; $600,000 special-tax repayment, bus purchases, and bond payments noted

CSFO Jay Duke told the Tuscaloosa City Schools board on May 5 that the district’s revenues and expenditures are closely tracking the adopted budget through February 2026, about the fifth month of the fiscal year.

Duke said local property-tax receipts and vehicle tag revenue are "coming in good" and are slightly ahead of budgeted expectations but cautioned the district will need to repay roughly $600,000 in August tied to a November 2024 ballot initiative creating a special property-tax district. "Just keep that in mind as you see those numbers a little bit ahead of what it might seem," Duke said.

Duke reported sales tax is up slightly compared with the same month last year and overall is tracking near budget. He told the board the district is not benefitting from rising online sales tax because many transactions occur outside local collection, and that a leveling of brick-and-mortar sales volumes appears to be offsetting higher prices.

The CSFO warned that expenditures will ramp up in coming months as the district starts paying for capital items. He said the district intends to purchase about 25 school buses, a package that totals "over $3,000,000," and noted debt-service activity is currently low until two large bond payments come due in late July and early August, which he estimated at about $11,000,000.

Board members pressed Duke on a few points. One asked whether elevated prices should have increased sales-tax receipts; Duke said online purchases and slowed in-person volume explain the uneven effect. On summer-learning funding, staff said the district has received additional state funds tied to the literacy and numeracy acts and continues to seek 21st Century grant support; administrators said summer programs will be built within available budget allocations and registrations should be finalized in mid-May.

Board members also asked about diesel costs for buses. Duke said fuel expense has risen "anywhere from $6,000 to $10,000 a month" but that, across a roughly $200,000,000 budget, the increase represents a small percentage and the district has budgeted a cushion for fuel.

Duke closed by emphasizing that instructional services and instructional support make up roughly two-thirds of the district’s budget and that careful planning over the last two years has aligned expenditures with revenue trends. The board took no formal action on the report; Duke concluded his presentation and invited further questions.