TCS Proposes $201M Budget: Here's Where The Money Would Go

TUSCALOOSA, AL — The Tuscaloosa City Board of Education got its first look Tuesday at a proposed $201 million budget for the upcoming fiscal year.

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Tuscaloosa City Schools officials said the spending plan calls for the school system to draw down reserves while maintaining investments in classroom instruction and student programs.

TCS Chief School Finance Officer Jay Duke presented the proposed fiscal 2026-27 budget during its first reading.

The next fiscal year begins Oct. 1 and runs through Sept. 30, 2027.

The board is expected to consider final approval at its next meeting Tuesday, Sept. 8.

The proposal includes approximately $194 million in anticipated revenue and $201 million in expenditures across all district funds.

Within the general fund, Tuscaloosa City Schools projects approximately $148.5 million in revenue against $161.7 million in expenditures, resulting in a planned drawdown of about $12.5 million.

Duke told board members the spending plan reflects financial decisions made over several years rather than a sudden shift in the district's fiscal strategy.

“This is a one-year budget, but this budget has been developing over the last two or three years,” Duke said.

Those decisions included eliminating approximately 50 positions in October 2024, changing the district's reserve policy and strategically using one-time federal and state funding.

TCS said instruction remains the district's largest expense under the proposal, with approximately $122 million across all funds earmarked for instructional services and instructional support. About $112 million of that would come from the general fund.

The proposed budget also includes $26 million for auxiliary services, including transportation and child nutrition; $24 million for operations and maintenance; and $7.6 million for general administrative services.

Salaries and benefits account for the largest portion of district spending, with teacher salaries and benefits representing 59% of general fund personnel expenses.

TCS receives about 46% of its revenue from the state, 42% from local sources and 12% from federal sources. Local revenue includes property, sales and automobile taxes, along with funding from the city of Tuscaloosa.

District officials said local funding will continue supporting career and technical education, summer learning, technology, social workers, school nurses, prekindergarten, arts and music programs, International Baccalaureate programs, National Board-certified teachers, transportation and Elevate Tuscaloosa initiatives.

“We get the revenue, we target the expenditures, and here are some of the outcomes,” Duke said, citing improvements in reading and math proficiency, college and career readiness, verified post-high school plans and extracurricular participation.

TCS also expects approximately $3 million during the second year of Alabama's RAISE Act, which provides additional resources based on student needs, including poverty, special education, English learners and gifted education.

“That’s been a really good thing for the Tuscaloosa City School System,” Duke said. “We will continue to ask our legislators to continue to fund the RAISE Act.”

As for the projected $12.5 million general fund drawdown, Duke said roughly $6 million comes from Advancement and Technology Fund revenue received during the current fiscal year. While that money must be recorded during the current year, TCS says it will be spent during fiscal 2027.

The remainder represents an operational investment intended to maintain existing programs and services.

“That $12 million is definitely by design,” Duke said. “Some of that is money that we’ve already got in the bank and that we’ll have to spend by the end of FY27.”

TCS expects to finish the current fiscal year with approximately 3.2 months of operating expenses in reserve. Under the proposed budget, that figure is projected to decline to about 2.4 months by the end of fiscal 2027.

TCS points out that would still leave the district above its own policy requiring 1.5 months of operating expenses in reserve and the state requirement of one month.

“That’s why we built it up — to pull it and use it in the classroom,” Duke said.

Enrollment remains another factor in the district's finances because state funding is tied to average daily membership.

TCS reported a K-12 student count of 10,317 in 2026, down from 10,509 in 2025, marking a decrease of 192 students, or about 1.8%.

Duke said district officials will continue monitoring revenues and expenditures throughout the fiscal year and provide regular financial reports to the school board.

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