Hamilton County Schools Superintendent Ed Robertson and district finance staff on Tuesday presented a preliminary FY26 budget that administrators say begins with an estimated $16 million to $18.5 million shortfall driven mainly by revenues that did not materialize in FY25 and a sharp rise in health-care costs.

"Just to be 100% clear, this is not the final version," Superintendent Ed Robertson said as he opened the finance committee briefing. He told board members the administration is preparing multiple versions and seeking direction from the board on which expense and revenue options to pursue.

The nut graf: The shortfall forces the district to weigh central-office reductions, program and operational savings and requests to Hamilton County government while protecting school staffing, student-facing resources and employee compensation as priorities.

Administrators said total projected operating revenues across funds are "just over $576,000,000." Robertson said two trends created the deficit: FY25 revenue growth budgeted but not realized—about $4.5 million to $6.5 million—and a recommended FY26 increase of about $12.5 million to cover rising employee health-care costs. Those two drivers combine for the roughly $16 million–$18.5 million starting deficit the district outlined.

To close the gap in the draft, the administration recommended a set of options that include: modest reductions in school-based staff (a roughly 2% reduction in school-based staffing across the system), a proposal to remove just over 30 central-office positions (the administration described this as representing about $3.1 million in savings), tighter controls on copier and paper usage (estimated $330,000 savings), and examining contracted services and transportation routes for additional savings.

Board members repeatedly pressed the administration about whether the district would approach Hamilton County government or municipal partners for more funding. Board member Connor reminded members of the county's maintenance-of-effort obligation as it applies to school funding and urged a deliberate strategy for county engagement. Multiple board members asked administration to prepare a version of the budget that represents the district's full need for education operations before approaching the county commission.

Administrators also flagged several federal and state revenue items that could change the budget picture. The presentation included a conservative estimate that the district could receive up to $2 million in reimbursements tied to school security officers (SSOs) under items in the governor's budget; Robertson cautioned the number could be higher or lower.

The draft shows the total workforce at about 5,038 full-time-equivalent positions across operating budgets. Robertson said the district's central-office workforce represents about 8% of the staff total; national guidance for similar-size systems typically ranges 9%–12%, he added. The administration said about 30 central-office positions are included in proposed reductions for savings.

Several board members urged that the district's advocacy to the county commission be vigorous and explicit. Board member Jones told the committee he has received hundreds of constituent emails and urged the board to consider a referendum or local-option funding if county support is insufficient. Board members also urged the administration to return with more granular options (for example, partial magnet-route changes rather than an all-or-nothing cut) so the board can choose among trade-offs.

Background and context: Robertson and staff emphasized that the draft is a version 1 and that the budget will change as revenues, grants and board direction are incorporated. The administration asked for direction from the board on which cards to pursue in subsequent versions and said it will return with more detailed breakdowns of contracted services, magnet transportation routes and other options.

What the committee did not do: The meeting recorded no formal motions or votes on the FY26 budget. The presentation was for discussion and direction.

What's next: Administration said it will prepare one or more revised budgets based on board feedback and will provide more detailed contract and department breakdowns in later versions. The board will consider those drafts in future finance committee and full-board meetings.