Bradley County schools present early FY2026–27 budget; officials plan for step raises and possible double‑digit insurance increase

The Bradley County school system presented a high‑level preview of its draft fiscal year 2026–27 budget on April 1, flagging staff compensation, health‑insurance costs and capital priorities as key line items.

Ellen, the district’s budget presenter, told the county commission the figures are early and subject to change before the board finalizes the budget in April. She said local revenue projections assume roughly 3% growth on property tax and 2% on sales tax, which together could yield about $500,000 in new local revenue for FY27. She added that a state “hold harmless” adjustment for economically disadvantaged counts could add roughly another $500,000 in state revenue.

The presentation emphasized compensation pressures. Ellen described the combined impact of step increases and percentage raises: “When I started 11 years ago that number typically cost us about a half million dollars. We’re now closer to $1,000,000 in that step raise increase,” and said proposed percentage raises would be layered on top of steps.

Ellen also warned the district is planning for a significant rise in health‑insurance costs next year. “This year…we are looking at a health insurance increase that is in the double digits. We have been told that it could be as high as 12%. We are planning for worst case scenario at a 12% raise,” she said.

On reserves, Ellen said the district’s designated fund balance is just under the board’s 7% target and that the figure is intended to cover about one month of payroll (monthly payroll was cited as roughly $7,300,000). She framed the 7% target as a local policy recommendation above the state’s 3% requirement and the county’s 5% resolution.

Commissioners asked for additional detail on staffing. Ellen confirmed two requested positions — a fine‑arts coordinator and an assistant director of schools — are not included in the current budget request. She also said last year’s staffing reductions used attrition (about 10 certified positions) and the district anticipates additional attrition to remain compliant with Title I supplement‑not‑supplant rules.

The district said it will continue refining revenue and enrollment assumptions as new state data arrives for March and April; a final statewide ADM that influences next year’s funding is typically locked in mid‑June.

At the meeting the commission also approved the previous meeting’s minutes by voice vote without recorded opposition.

Next steps: the school board will continue budget work and the district plans to present a balanced budget for adoption in April.