Hampton County Board of Trustees approves 2026–27 budget, moves $3.11 million from capital fund to cover shortfall

The Hampton County Board of Trustees approved the district’s 2026–27 general fund budget at a second reading during its June 2 meeting and authorized moving $3,113,331 from capital fund 509 to help cover a projected shortfall.

Dr. Sheffield, presenting the second reading, said the proposed budget includes a $2,000-per-salary increase for teachers — about a 4.6 percent bump — and described revenue projections that together produce roughly $36.2 million in total revenue, about $3.78 million above the current year. The presenter noted a correction to an estimated millage-dollar figure in the published template and walked the board through projected revenues, transfers and expenditures.

"I am asking for us to be able to pull that $3,113,331 from our capital fund 509," Dr. Sheffield said, explaining the request was intended to avoid tapping the district’s true fund balance and to protect district cash flow while the budget is finalized.

Board members pressed for clarification about cash-flow risk and how a transfer would be staged. A board member noted the state-required minimum fund-balance percentage (described in the meeting as about 8.8 percent) and confirmed that any transfer would be handled to protect required reserves and ongoing cash needs. The presenter said the transfer would not be taken all at once and that the district also uses short-term tax anticipation notes (TANs) as a cash-flow tool during months before tax collections are available.

After discussion, the board voted to approve the motion to move $3,113,331 from capital fund 509 and to approve the second reading of the budget. The motion was moved and seconded and recorded as carried in the transcript.

The budget presentation included line items the presenter highlighted: local revenue estimated to increase compared with the current year, state reimbursement estimates, and projected personnel and fringe costs (total salaries and benefits were discussed as the largest expenditure drivers). The presenter also noted a deficit that would be covered by the requested transfer and outlined the district’s plan to monitor cash flow and reserve requirements as the year begins.

The board did not provide additional detail in public about specific items within the capital fund that would be affected by the transfer. Next procedural steps noted at the meeting: the district will implement the approved budget and monitor state budget developments that could affect final figures in coming months.