BY STEVEN STIEFEL
FOR THE OBSERVER
LEE COUNTY — The Lee County Board of Education approved a $160 million budget Sept. 8 for the fiscal year that begins next month, continuing a decade-long practice of building in projected surpluses to protect the district’s cash reserves.
Chief School Financial Officer Ken Roberts told the board reserves remain the district’s main gauge of financial health, a standard it has applied for 10 to 12 years.
“Key things: projected reserves at the end of the budget period, 2.65 months of operating expense,” Roberts said. “Now, in layman’s terms, how much do we spend in our general fund in one month’s time? That is a dollar amount. It’s around $10 million. And what we’re projecting in reserve is 2.65 months of operating expense in the range of $27 million. That’s a conservative estimate. There are some things that could make that number slightly higher.”
Roberts said year-end entries create some volatility from year to year. The district started the current year with reserves equal to about 3.3 months of operating expense.
Personnel costs will rise 3%, driven by a 2% cost-of-living adjustment approved by the state and an estimated 1% step increase tied to the teacher salary matrix
Annual debt service is holding steady at about $8 million. The district’s capital budget stands at $17.5 million, and officials are targeting completion of major capital projects by 2029.
Local revenue growth
Roberts called local revenue growth “extremely important” to the district’s finances. The system is projecting 5.5% local revenue growth this year, above its 10-year average of 5%, which he said typically adds $2 million to $2.5 million a year.
The projections include 7% growth in property tax revenue and 3% growth in sales tax revenue. Roberts said property tax revenue is easier to forecast because it is based on a tax abstract compiled a year in advance, while the sales tax projection is deliberately conservative compared with the district’s 10-year average of 4.2%.
“Our core foundation revenue has increased. State revenue in general has increased,” Roberts said, citing factors such as population and traffic growth and state earmarks for specific programs. He said federal revenue is “fairly stable,” with a slight decrease in Title program funding.By source, the budget draws approximately 57% of revenue from the state, 35% from local sources and the remainder from federal funds.
Spending breakdown
Personnel accounts for 65% of the budget. Capital outlay makes up 9%, and auxiliary services such as cafeterias and transportation account for 12%.
The district’s local match for state funding is just under $10 million, up nearly $3 million over three years.
The district has some flexibility to shift state funds between purposes; Roberts cited one instance in which about $30,000 was moved to a subgroup because of enrollment growth.
Board members discussed keeping reserves in the range of two to three months of operating expense, weighing fiscal caution against getting funds to students. The board approved the monthly financial report and personnel recommendations, and it will review actual operating balances in November.
The board also:
• Approved the 2027 Textbook Adoption Committee for Digital Literacy and Computer Science. Members are Candy Crance, Jennifer Harris, Kelly Green, Clarissa Thurman, Kylie Jones, Allison Credo, LaBrawnski Salter, James Swafford, Cassidy Stecenko, Debra Byrd, Heather Kite, Grace Harris and Samantha Shanks.
• Approved the Lee County Board of Education Wellness Policy on Nutrition, Physical Activity and Student Wellness, which applies districtwide and is intended to meet federal Local School Wellness Policy requirements, U.S. Department of Agriculture Child Nutrition Program rules and Alabama State Department of Education guidance.
• Approved athletic coaching supplements for the 2026-27 school year.
• Approved the district’s seclusion and restraint report for August.
•Approved out-of-state and overnight field trips, including a Beauregard High School basketball team trip to a tournament Dec. 29-30 in LaGrange, Georgia; a Beauregard Elementary School trip to Space Camp March 22-24; and a trip to 4-H camp in Columbiana, Alabama, May 12-14.
The board’s next regular meeting is scheduled for Oct. 6 at 5 p.m. at the central office, 2410 Society Hill Road in Opelika. A work session and special called meeting was held Sept. 15 to approve a timeline and process for the superintendent search.
