Budget preview: district projects smaller use of fund balance, expands weighted student funding and reduces employee Kaleidoscope fees
April 02, 2025 | Charleston 01, School Districts, South Carolina
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District finance staff presented an update on the proposed fiscal 2026 budget, detailing revenue and expenditure shifts, program-level changes, and several board-level considerations.
Mister Prentice told the committee that updated estimates narrow the district’s use of fund balance from prior projections and that FY26 revenue assumptions include increased local collections (property and other local sources) and increased state recurring funds. He said the district is on track to present a first‑reading budget in April and outlined a potential special‑called schedule to meet that calendar.
The nut graf: Key changes highlighted include a projected $36 million weighted student funding (WSF) allocation for FY26, an $8.2 million increase in charter and partnership payments driven by the state formula, and a planned reduction of Kaleidoscope employee tuition support from 80% to 50%, which staff estimated would reduce Kaleidoscope program revenues by about $585,000 but could be balanced in FY26 without GOF support.
Prentice and other staff described additional items that affect the FY26 balance: a net projected decrease of about $1.2 million in property/casualty insurance premiums after adjusting insured values and purchasing excess liability coverage; personnel and benefit cost growth to maintain market wages (including a $4,000 adjustment for certain classified cells and a teacher minimum starting pay target); and an expected increase of roughly $20.4 million in state funding tied to enrollment and recurring appropriations.
Board-level considerations presented for possible inclusion in the FY26 book were modest in total but policy-sensitive: funding for board pay adjustments (current pay cited at $9,600 for regular members and $10,800 for chair), a legislative liaison stipend, and travel stipends (currently $1,666 per board member per year).
Prentice also reviewed implementation mechanics, noting the district’s strategy to reduce reliance on fund balance over time and to give departments earlier access to budgeted resources if the board approves an earlier first reading. The committee discussed timing for special calls and agreed staff would circulate the budget book prior to first reading.
Mister Prentice told the committee that updated estimates narrow the district’s use of fund balance from prior projections and that FY26 revenue assumptions include increased local collections (property and other local sources) and increased state recurring funds. He said the district is on track to present a first‑reading budget in April and outlined a potential special‑called schedule to meet that calendar.
The nut graf: Key changes highlighted include a projected $36 million weighted student funding (WSF) allocation for FY26, an $8.2 million increase in charter and partnership payments driven by the state formula, and a planned reduction of Kaleidoscope employee tuition support from 80% to 50%, which staff estimated would reduce Kaleidoscope program revenues by about $585,000 but could be balanced in FY26 without GOF support.
Prentice and other staff described additional items that affect the FY26 balance: a net projected decrease of about $1.2 million in property/casualty insurance premiums after adjusting insured values and purchasing excess liability coverage; personnel and benefit cost growth to maintain market wages (including a $4,000 adjustment for certain classified cells and a teacher minimum starting pay target); and an expected increase of roughly $20.4 million in state funding tied to enrollment and recurring appropriations.
Board-level considerations presented for possible inclusion in the FY26 book were modest in total but policy-sensitive: funding for board pay adjustments (current pay cited at $9,600 for regular members and $10,800 for chair), a legislative liaison stipend, and travel stipends (currently $1,666 per board member per year).
Prentice also reviewed implementation mechanics, noting the district’s strategy to reduce reliance on fund balance over time and to give departments earlier access to budgeted resources if the board approves an earlier first reading. The committee discussed timing for special calls and agreed staff would circulate the budget book prior to first reading.
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