Liberty County Board of Education members are looking at a budget that calls for dipping into the reserves for the coming fiscal year.

School board members have been presented a budget with $154.5 million in revenue and expenditures totaling nearly $157.5 million. Board members voted 6-1, with Dr. Marcus Scott IV casting the dissenting vote, to adopt the tentative budget.

The difference between the anticipated revenues and expenses is expected to be made up through the school system’s fund balance.

State funding is projected to make up the bulk of the school system’s revenues. The $100 million in expected money from the state makes up nearly two-thirds of the system’s financial intake.

The state’s quality basic education formula funding for Liberty County Schools is up to $97.1 million, up $4 million from the previous year. State funding accounts for more than 65% of the system’s revenue.

“The majority of our funds come from the state,” schools chief financial officer Stephanie Clark told school board members.

The QBE funding for the coming fiscal year is based on the system’s full-time equivalent enrollment count of 10,592. Currently, the system’s enrollment tops 10,800. Clark pointed out that QBE does not cover such expenses as athletics or other extracurricular activities, such as band, or the county’s pre-kindergarten program. It also does not cover the county’s cost for 100% transportation of students.

The proposed budget is an increase of $12.5 million over the current fiscal year, which ends June 30. The projected revenues are up $9.5 million from FY25.

Funding from federal sources is expected to make up about $20.6 million and local sources, including property taxes, will make up approximately $32 million of the system’s revenue.

The bulk of the school system’s spending, more than $90 million, is labeled for instruction. Just under $11.2 million is set to go toward maintenance and operations, and about $10.4 million will go toward school food and nutrition. Pupil services spending will account for more than $9 million in spending.

Spending on school nutrition is slated to go up more than $2 million for the coming fiscal year.

Raises are on the table for a number of school personnel, including a 5% pay hike for all classified staff below the level of assistant director. Pay raises for bus aides, paraprofessionals, secretaries, custodians, grounds crew, maintenance and bus mechanics and food service crews also are being proposed.

“It’s way past due,” board Chair Verdell Jones said of the 5% pay raises.

The proposed budget also calls for several new positions, including two additional literacy coaches, 12 full-time paraprofessional substitutes, seven content mastery lab teachers and a pre-kindergarten counselor. Also on the books are supplements for parapros and outdoor education coordinators, and $40,000 in the onboarding package for transportation hires.

More than 80% of the budget is ticketed for salaries and benefits, including a 1% increase in the employer portion of the teacher retirement system.

“Salaries and benefits eat up the majority of the budget,” Clark said.

With certified personnel in line for raises, board member Carol Guyett suggested increasing the retention incentive for certified personnel. The current $500 bonus, paid out before the end of the calendar year, is set so the total is the net for each certified employee.

“I was specifically thinking about teacher morale,” she said. “We have a lot of vacancies. I think it is a way of saying thank you for sticking with us during difficult times. It’s not like we can’t afford to do this. At the end of the day, it’s not going to be a breaking point.”

“We want to do something for our staff that shows we appreciate them,” Jones added.

The schools also plan to spend $12.7 million on capital projects, including $1.65 million for site development and purchase of a site for a new school. Also planned are $1.5 million for a roofing upgrade at Midway Middle School, $1.3 million for a HVAC upgrade at Frank Long Elementary and $1.2 million for interior renovations at Bradwell Institute. Those projects are funded through the education special purpose local option sales tax, which cannot be used for salaries and other operating expenses, Clark pointed out.

A second budget hearing is set for June 10 at 5 p.m. and the final budget adoption is set for June 18 at a called meeting. The fiscal year 2026 budget goes into effect July 1.