Board approves 3% across-the-board pay increase and adopts tentative $27 million budget

The McCreary County School Board voted to give a general 3% salary increase to all district staff and adopted a tentative FY2026–27 budget the same evening.

Board member (name recorded in the transcript as a motion-maker) moved that "we give a general... a salary of 3% to all staff members," a motion that was seconded by Ruth Braxton and approved by voice vote. The board then approved the district's tentative budget for FY2026–27, which presenter materials estimated at about $27,000,000 with a baseline contingency of roughly 6.8%.

During a budget presentation, a district presenter highlighted major expense categories — salaries and benefits, utilities, insurance, building maintenance and the transportation fleet — and set out estimated costs for additional raises: a 1% increase would cost about $151,000, 2% about $303,000 and 3% about $455,000. The presenter said step raises are already budgeted within the contingency and that recent unanticipated revenue (FY2026 in-lieu-of-tax receipts of approximately $246,000 and an NRCC base estimated at $40 per student yielding about $92,000) helped improve the district's fiscal position.

Board members and staff also discussed how state legislation could constrain future local pay decisions. Dr. Chambers explained that Senate Bill 2 restricts administrator extra-duty percentages after July 1 so administrators generally cannot receive extra-duty pay percentages higher than teachers. A staff member warned that while special permission through the Kentucky Board of Education (KBE) may be possible in limited cases, obtaining such approvals appears likely to be difficult based on current guidance.

The presentation also covered proposed internal reassignments tied to retirements (for example, reassigning some athletic director duties to the director of operations), targeted increases to extra-service compensation (assistant principals’ extra-duty pay was proposed to rise from 4% toward 8% in the materials), and modest additions such as five summer days for the district health coordinator to complete hiring-related drug testing (presenter estimated that cost at roughly $1,100). The presenter estimated a set of several targeted compensation items would total about $17,000, with a higher-percent scenario approaching $31,000.

The board adopted the tentative budget and approved the general 3% increase; the board will consider final budget actions in subsequent meetings. The meeting record shows the board intends to monitor both the fiscal impacts and compliance needs related to Senate Bill 2 before implementing any longer-term changes to administrator extra-duty pay.