Schools, Counties Approve Budgets Amid Rising Costs

Huntsville financial officials said the district benchmarks its teacher salary schedule against neighboring districts to remain competitive, while rising construction costs are shaping plans for new schools and major renovations over the next decade. The fiscal year begins Oct. 1.
Lawrence’s budget provides city employees with a 2.5% general raise and a 5% performance-based step increase for some workers. It also reduces the city’s contribution to employee health care, adds 12 fire-medical positions and includes a 0.4-mill increase approved by the Lawrence Public Library board.
Bexar County’s budget reflects a roughly $200 million reduction from the prior year because the county no longer has federal American Rescue Plan Act funding. County employees criticized the plan at Commissioners Court, including its lack of employee raises alongside salary increases for elected officials.
Birmingham’s budget includes two locally funded personal-leave days, a $3,500 allowance for special-education teachers and sign-on bonuses for critical positions, in addition to summer and after-school programs and security-camera funding.
Essexville-Hampton expects to receive the bond proceeds in two installments—$10 million in February 2027 and $7.9 million in 2028—and aims to open the first early-childhood facility by late July or early August 2027. Officials are considering an annex at Bush Elementary connected by a tunnel or skybridge, after new preschool and toddler classrooms quickly filled and created a waiting list.
Local governments and school districts across Alabama, Kansas, Texas, and Michigan approved budgets totaling billions of dollars in September 2026, navigating rising construction costs and the loss of federal pandemic relief funding. Bexar County in Texas adopted a $2.6 billion spending plan with no immediate property-tax increase, while Lawrence, Kansas approved a $397 million budget in a contentious 3-2 vote that raised property taxes by 1.46 mills. School systems in Alabama and Michigan approved separate plans to boost teacher pay and fund major capital projects.
The budgets reflect a broader challenge facing local officials nationwide: maintaining competitive employee salaries and essential services while absorbing steep increases in construction materials and labor costs. Bexar County saw revenue drop roughly $200 million after federal American Rescue Plan Act funding expired, forcing officials to freeze employee raises and halt new capital projects.
Huntsville City Schools approved its 2027-28 budget by benchmarking teacher salaries against neighboring districts to stay competitive for hiring. The district will draw modestly on reserves while maintaining a positive fund balance, with the fiscal year starting October 1. Rising construction costs are reshaping plans for new schools and major renovations over the next decade.
Birmingham City Schools adopted a $544.97 million fiscal 2027 budget, a $63 million increase that includes two locally funded personal-leave days, $3,500 annual allowances for special-education teachers, and sign-on bonuses for critical positions. The budget also funds $77.8 million in capital projects, school security upgrades with security-camera funding, and expanded summer and after-school programs.
Lawrence, Kansas approved a $397 million budget in a split 3-2 vote, raising the property-tax rate by 1.46 mills despite public opposition over economic uncertainty. Mayor Brad Finkeldei stated: "I think everyone who ends up voting for this and everyone who votes against it probably isn't exactly happy... But we have to pass a budget." Vice Mayor Mike Courtney and Commissioner Kristine Polian voted no, citing widespread economic strain.
The budget provides city employees with a 2.5% general raise and a 5% performance-based step increase for some workers. It adds 12 fire-medical positions and expands Parks and Recreation services. The budget also reduces the city's contribution to employee health care and includes a 0.4-mill property-tax increase approved by the Lawrence Public Library board.
Bexar County commissioners approved a $2.6 billion budget with no immediate property-tax increase, but the plan draws $68 million from surplus reserves and freezes all new capital projects. According to ktsa.com, the county's revenue contracted roughly $200 million after losing federal American Rescue Plan Act funding that had supported pandemic relief efforts.
County employees criticized the budget at Commissioners Court, objecting to a wage freeze for non-elected workers while salaries for elected officials remained unchanged or increased. The contentious decision reflects the county's effort to maintain stable property-tax rates despite a 1.3% decrease in taxable property values and eroding federal support.
Essexville-Hampton Public Schools began implementing a $17.9 million voter-approved bond to address overcrowding in preschool and toddler classrooms, which filled rapidly and created waiting lists. The district expects to receive bond proceeds in two installments: $10 million in February 2027 and $7.9 million in 2028. The first early-childhood facility is scheduled to open by late July or early August 2027.
School officials are considering an annex at Bush Elementary connected by a tunnel or skybridge to accommodate demand for new preschool and toddler classrooms. The bond will ultimately fund 80 capital improvement projects across the district, addressing long-deferred building needs and expanding capacity for younger students.
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