The Lexington School Board voted on March 12 to approve a draft operating budget of $10,062,006 for fiscal year 2026, a spending plan that focuses on employee compensation, classroom- level support, and sustaining core services.
The budget draft reflects a $250,996 increase in local funding requested from the city of Lexington, bringing the city’s total contribution to $3,990,059 - approximately 39% of the total operating revenue. The remainder of the funding comes from state (53%), federal (5%), and other sources (3%). This local ask represents a 6.71% increase from the city’s local contribution in FY25.
One of the key priorities in the budget is raising salaries for teachers and support staff, with a minimum 3% raise for all employees and more significant increases for those in the lower salary steps. According to the presentation, some staff members in earlier career stages will see raises closer to 13%, thanks to targeted changes in the salary scale.
“We’ve been working to lift up those employees who are at the bottom end of the pay scale,” said Superintendent Rebecca Walters during the meeting. “This budget reflects that commitment.”
Instructional expenses account for about 70% of the budget, with the remaining funds allocated to administration, health services, transportation, maintenance, and technology. The division will also maintain its substitute teacher rates at $125 per day for regular substitutes and $150 per day for long-term placements.
In addition to the operating budget, the Board reviewed separate allocations for school nutrition programs, preschool services, and federally funded initiatives, which are tracked in different funds.
Although the Board acknowledged continued uncertainty around state funding and enrollment trends, several members expressed confidence in the direction of the plan.
“We want to keep moving forward every year,” said Walters. “It’s not about being competitive with others — it’s about doing the best we can for our staff and students.”
The draft budget was presented to Lexington City Council at a joint work session this past Thursday.
