📊 Inside Our Budget: Leeds City Schools Maintains Strong Financial Health for FY 2027

Dear Greenwave Families,

Earlier today, the Leeds City Schools Board of Education officially approved our budget for Fiscal Year 2027.

When you hear terms like millage rates, OCE allocations, or fund balances, school finance can feel a bit overwhelming! But as a school system, we want to make sure our families always have a transparent, clear look at how our district is managed.

The most important takeaway for our community is simple: Leeds City Schools is in great financial shape. We are operating with a healthy cushion, investing heavily in our teachers, and making important facility improvements across all campuses—all while remaining fiscally responsible.

Here is a breakdown of what our FY27 budget looks like and where our money comes from and goes:

1. Our "Rainy Day" Reserve is Strong 

State law requires school districts to maintain at least 1 month of operating expenses in a financial reserve (our district's savings account).

• We are starting the year with 4.26 months of expenses in reserve ($11 Million).
• Even after planned capital projects and facility investments this year, we project ending the year with 3.43 months of reserve funding ($8.8 Million).

This strong reserve ensures our schools stay stable, secure, and prepared for any unexpected costs without cutting classroom resources.

2. Where Our Funding Comes From 

It takes a combination of state and local support to run our district. For every dollar coming into our General Fund:

• 69.11% comes from the State of Alabama (State foundation funding, nurse allocations, transportation support, etc.)
• 28.59% comes from Local Taxes (Property tax and sales tax across Jefferson, St. Clair, and Shelby counties)
• 2.30% comes from Other Sources

Note for Families: State funding increased this year to help cover a state-mandated 2% pay raise for educators, rising healthcare costs (PEEHIP), and enhanced school bus safety features—including a brand-new bus camera system.

3. Where the Money Goes: Investing in People & Facilities 

The vast majority of our budget goes directly where it matters most: our educators and classrooms.

• People First (73.78%): Nearly 74% of our General Fund goes directly to personnel costs—paying our dedicated teachers, support staff, bus drivers, custodians, and nurses.
• Campus & Facility Improvements:We are using targeted funds to maintain and upgrade our buildings, including:
  • Upgrades to the Jerry Oxford Gymnasium ($75,000)
  • HVAC improvements at Leeds Elementary ($250,000)
  • Lighting upgrades at Leeds Middle School ($250,000)
  • Boiler repairs at Leeds High School ($53,000)
• Daily Operations: The remaining operating funds cover essential costs like powering our facilities (electricity & water), classroom technology hardware ($295,000), bus maintenance and fuel, textbooks ($208,340), and specialized student services.

4. Child Nutrition & Federal Programs 

• Free Meals Continue: We are thrilled to enter our 4th consecutive year participating in the CEP (Community Eligibility Provision) program. Our Child Nutrition Program is operating with a healthy cash balance, meaning we can continue providing meals for our students effectively.
• Special Education & Student Support: Our Special Education services are strongly supported by over $715,000 in state grants, ensuring every child receives the individualized support they need to thrive.

The Bottom Line

Thanks to careful planning, community support, and strong stewardship by our Board of Education, Leeds City Schools continues to sit on solid financial ground. We are fully equipped to support our teachers, maintain safe and comfortable facilities, and provide our students with a world-class education this school year!

Thank you for your ongoing partnership and support of Leeds City Schools!