Covington superintendent and finance director outline tight FY27 tentative budget, contingency cut to 3%

Director Burchi presented the board with a tentative FY27 general fund budget of about $58,400,000 and described the budget as a work in progress that assumes step increases and anticipates ongoing conversations about raises and allocations.

Burchi told the board the draft includes $12 million in "on‑behalf" payments the district must record (items such as state‑paid benefits and technology costs) and that salary and fringe costs make up roughly 80–81% of the budget. "When we're not increasing revenue but we're keep giving those raises... we've given 24% in raises over the last four years," she said, noting that continued raises make the budget tighter.

On the draft presented for board review, contingency was 3% — below the district's typical planning target of about 10%. Burchi said the contingency was reduced on paper to balance projected costs and that the budget committee will continue refining assumptions over the summer. She told the board she built a 4% raise assumption into earlier planning cycles but that timing and the comprehensive compensation study's recommendations will influence what can be implemented.

Burchi described several areas the budget committee reviewed to balance the plan: a proposed reduction of $100,000 to summer program allocations, an adjustment to SBDM (site‑based decision‑making) allocations down to $100 per child, and efforts to realize savings through attrition and other staffing decisions. She also said the district typically budgets SEEK (state per‑pupil funding) conservatively but that this draft shows 100% of SEEK rather than the usual 95% because of current income trends and timing risks.

Board members asked for more detail on beginning balances, contingency assumptions and how the comprehensive compensation study will be used to revise pay schedules. Burchi said she expects to provide more detailed figures in the coming months and that the working budget will continue to change between the tentative presentation and the September working budget.

What happens next: the tentative budget will be revised over the summer as more revenue projections and study recommendations arrive; the board will consider the working budget in September and any significant changes will be returned to the board for approval.