FY2026 Proposed Operating Budget: Focus on Improvements While Addressing Funding Gaps

Superintendent Millard House II recently unveiled a $2.9 billion proposed budget for fiscal year (FY) 2026 that reflects the district's unwavering commitment to educational transformation, equity, and operational excellence, as outlined in the Transformation 2026 Strategic Plan. The budget tackles both short and long-term challenges, and seeks to address a $42 million gap while continuing to prioritize critical investments.

Where the Money Comes From: Funding Sources

The FY2026 proposed budget of $2.9 billion balances our diverse needs with available resources. Here's a snapshot of next year’s funding sources:

• State: $1,724,567,644
• County: $945,500,078
• Federal: $141,753,207
• Board of Education: $31,575,391
• Past-Year Fund Balance: $95,000,000
  Total Revenue: $2,938,396,320

Where the Money Goes: Key Expenditures

The budget also outlines how we plan to allocate funding:

• Salaries & Wages: $1.81 billion (covers full-time and part-time salaries)
• Employee Benefits: $544.8 million
• Contracted Services: $336.9 million
• Supplies & Materials: $73.7 million
• Capital Outlay/Additional & Replacement Equipment: $33 million

Program investments include $19.4 million for areas like Information Technology, Safety and Security, and Sustainability & Resiliency – all critical components in creating a future-ready educational environment.

Addressing the Budget Gap

One of the most important elements of this proposed budget is how it handles the $42 million budget gap. Superintendent House has proposed several key strategies to close this gap, including:

• Expenditure Reductions: A total of $107.6 million in redirected resources, mainly focused on Central Office Realignments, Salary Lapse, and Restricted Grant Program Reductions. Redirected resources in Central Office operations include realigning vacant positions, reducing discretionary funding, and shifting resources from one program to another in order to fund key priorities and streamline operations without compromising the quality of services provided to students.
• Fund Balance Utilization: A reduction in the use of the fund balance by $25 million, which will help avoid overreliance on reserves.

Focus Areas for FY2026

The proposed budget also includes continued investments in critical areas identified as part of the Transformation 2026 goals:

• Literacy: Continued support for early learners with a focus on literacy improvement through evidence-based strategies.
• Mental Health: Expanding resources for mental health services to address the rising need for psychological support in schools.
• Multilingual Learners: Enhanced supports for students and families navigating language barriers.
• Students with Disabilities: Increased resources to ensure these students receive the specialized services and education they require.
• Transportation: Further implementation of recommendations to improve service delivery and reduce delays.

Get Involved!

Superintendent House encourages all stakeholders to review the proposed budget and provide feedback. 

Public hearings and work sessions will be held in the coming months, with opportunities for parents, students, and community members to voice their opinions and share suggestions.

Upcoming Dates

• January 23: Work Session at 5 p.m., Public Hearing at 7 p.m.
• February 6: Work Session at 5 p.m., Public Hearing at 7 p.m.
• February 13: Public Hearing at 5 p.m., Work Session at 7 p.m.