Oakfield-Alabama board unveils $26.99 million budget, proposes 4% tax levy and separate bus proposition

The Oakfield-Alabama Central School District presented a proposed $26,999,528 budget that the administration said closes a $2.66 million shortfall largely through targeted expenditure reductions, use of fund balance and a proposed 4% tax levy increase.

The interim superintendent described the budget on the board meeting’s final presentation as the product of workshops that began in January. The package would raise the district’s levy by $227,865 (about 4% and below the district’s estimated levy cap of roughly 6.21%) and, the presenters said, would leave the district with a balanced plan when combined with appropriated fund balance and reserve draws.

Administrators said the district began the process with a $2.66 million gap before using reserves or proposed levy revenue. The administration proposed reducing staffing through attrition and some retirements, consolidating low-enrollment elementary sections in places from three to two, trimming equipment and materials purchases, and eliminating or consolidating a small number of noninstructional positions. Officials stressed that core extracurricular programs would be preserved and explicitly confirmed that the FFA program would not be cut.

Why it matters: presenters said rising benefits costs — chiefly a roughly 30% increase in health insurance premiums — account for the largest single budget pressure and represent more than $1 million of new benefit spending this year. Other upward pressures include higher liability insurance (estimated 11–13%), utilities and debt service related to an ongoing capital project that brings increased building aid on the revenue side.

Key numbers and voter choices: the proposed total budget is $26,999,528, a 9.75% increase from the current year’s budget before contingent adjustments. The administration proposed a 4% tax levy increase (about $227,865); using last year’s equalization and assessed values, officials estimated that would add about $653 a year for the owner of a $100,000 home (roughly $54 a month), noting assessments and equalization could change the actual rate. To keep capital purchases off the general fund, the district will place a separate proposition on the May 8 ballot to finance two buses (one small with a wheelchair lift and one large bus) with debt not to exceed $443,000; presenters said expected debt service would begin in the 2027–28 fiscal year.

Contingent budget explained: administrators walked through contingency options if voters reject the proposed budget — the board can adopt a contingent budget or re-submit a budget for a second vote. Under contingency, presenters said deferred capital maintenance, reduced field trips and modified athletics are possible outcomes, and they cautioned that repeated contingency cycles reduce flexibility over time.

Other revenue notes: the district’s revenue mix is heavily weighted to state aid, the local tax levy and pilot payments (about 90% of revenue). Administrators said pilot receipts were mostly unchanged year over year; Plug Power’s payments end this year and another company (Stream Data) has indicated it would assume some payments but no formal agreement exists.

Votes and procedure: the board moved and approved routine items including minutes, warrants (bills) and the treasurer’s March report; the motions passed with a single opposing vote recorded for each of these items in the meeting record (the transcript does not name vote-by-vote counts). Officials reminded voters the district budget vote is scheduled for May 8 from 11 a.m. to 8 p.m. in the meeting room, and a budget hearing is planned for May 12 at 6 p.m.

What’s next: the district asked the community to review the mailed budget brochure, attend the May 12 hearing or email questions, and to participate in the May 8 vote. Administrators said they will monitor class sizes and program offerings as they implement the plan and will return with any further clarifications to the public and board.

Quote: “No—we are not cutting FFA,” the interim superintendent said when asked directly whether the program would be eliminated.

The board adjourned after routine approvals and closing remarks that emphasized gratitude to staff and appeals for voter participation on May 8.