Budget workshop: district projects FY27 amid enrollment decline, proposes $2,000 teacher-step increase

Gail Sanders presented the Orangeburg school district’s FY26 financial position and FY27 projections at a budget workshop on March 24, 2026, telling the board the consolidated fund balance reached about $44.4 million as of June 2025 but that state-aid adjustments and declining enrollment require cautious planning.

Sanders said revenue collected through Feb. 28 was presented at $12.88 million, expenditures at $87.9 million and an uncommitted balance of about $24.8 million as of the report. She noted fund balance includes receivables, prepaid expenses and grant reimbursements, not only cash on hand.

The presenter walked the board through millage calculations and a Department of Revenue notice that the district could increase millage by up to 5.76 mills. Sanders emphasized, "We are not asking for a tax increase," and said the 5.76-mill allowance would translate to roughly $1.35 million gross (about $1.28 million at a 95% tax-collection assumption) — a figure shown to illustrate revenue capacity, not a current proposal.

Board members and staff discussed tax-collection timing in Orange County and the district’s routine use of a 95% collection assumption in revenue forecasting. A board member asked whether the district should increase millage now; staff recommended waiting while monitoring state-level budget outcomes.

Sanders laid out enrollment and ADM declines since 2021, reporting a head count drop from about 11,308 to 9,980 and ADM decreases that, according to the district’s calculations, drove a net state funding reduction the presenter rounded to roughly $2.36 million. Staff said that calculation equated to an estimated 41.08 teacher funding units when compared with the state’s per-teacher funding unit used in their model (presented as about $77,879 for state-funded teacher cost units). Sanders and other staff repeatedly framed those figures as estimates tied to state reporting and to the district’s chosen budgeting assumptions.

On compensation, Sanders said the state’s draft minimum teacher salary schedule shows increases of about $2,000 per salary cell and that the district proposes increasing each step of its salary schedule by $2,000, bringing the district’s stated starting salary to about $51,440 under the draft schedule. The district also proposes a 2% increase in bus-driver pay lines, step increases for eligible employees, a retention-bonus program dependent on final revenue, a $1,000 signing bonus for new teachers and the addition of one secondary math coordinator and one security officer (details on assignment to be clarified).

A board member raised concerns that some bus drivers run multiple routes but may not be compensated for all routes. Staff replied that drivers are paid by hours worked and that overtime rules apply when hours exceed eight in a day; staff agreed to review pay practices where members alleged drivers were not being fully compensated.

Staff reviewed school-submitted "wish lists" that supplement each school's budget allocation. Examples included classroom desks and chairs, AV and camera equipment for a high school auditorium, robotics equipment, greenhouse assembly for a club, facility repairs and the removal of underused lockers to create learning spaces. Board members asked whether items marked "taken care of" were completed or merely in process; staff clarified many items are identified and in process rather than fully completed.

Sanders closed with next steps and deadlines: a draft to the superintendent and senior staff on April 20; a first reading of the FY27 budget on May 12; public notice around May 24; and the final reading and approval on June 9. Staff said they will continue to monitor state budget action (House and forthcoming Senate versions) and adjust local assumptions.

The workshop began with routine opening formalities and a motion to approve the agenda, which was approved with no opposition. The meeting adjourned following a motion that was approved without opposition.

What happens next: staff will update the board as state aid figures change, consider how much revenue is available for retention bonuses, and return with the formal first reading of the FY27 budget in May.