By Dr. Akil E. Ross. Sr.
On June 8, 2026, the Lexington Richland Five Board of Trustees approved the second and final reading of the 2026–2027 annual budget in the amount of $255,715,126.81. I am excited to summarize what this budget means for our students, staff, families, and taxpayers.
The annual budget is the financial plan for the operation of the school district. Therefore, the operating budget (general fund budget) is the engine that drives our district. It translates our educational priorities into dollars and guides the school district in executing its objectives for the upcoming school year. In short, it is an estimate of where we intend to go, based on an audit of where we have been.
The operating budget is not to be confused with the capital budget. Capital funds cannot be used for operational needs such as teacher and support staff salaries. The capital budget is funded by the sale of bonds and repaid through debt service taxes. These funds are used to address facility renovations, activity buses, technology, and construction.
The 2026 -2027 school year’s operating budget planning process began in October 2025 and reflects the priorities and input from trustees, principals, directors, faculty advisory, parent advisory, and student advisory. We determined that the budget’s objectives were to address the cost-of-living crisis for the district’s teachers, staff, and families; provide after-school academic support; and increase supervision for students.
What we funded:
Support staff pay increase: We increased support staff salaries by restructuring the hourly/supplement schedule. The new starting hourly rate for the lowest pay scale increased to $14.03, an 8.9 percent increase from last year.
Teacher pay increase: Teachers received a step and an overall raise. The starting pay for teachers increased to $51,500. Teacher pay in LR5 has increased 49.7 percent since the 2018 – 2019 school year.
New supplemental pay structure: We made market adjustments as needed, including targeted increases for middle- and high-school band directors. There is now a six-lane athletic supplement schedule to align athletics pay to the midlands school district market.
Expanded academic supports: Teacher stipends and student transportation will be provided for second-semester tutoring. The Tier 2 tutoring program will support students with academic and counseling needs.
New Associate’s Degree program: In partnership with Midlands Technical College, LR5 will provide students the opportunity to earn associate’s degrees at the Harbison MTC campus.
We can fund this budget without raising the overall tax rate. However, we made millage adjustments to fund pay increases.
The operating tax increased by five mills, from 261 to 266, and debt service decreased by five mills, from 69.6 to 64.9, keeping the total millage rate at 330.5. With the passage of Act 388 in 2006, primary homes or four percent of assessed properties do not pay the operations tax. Therefore, with the debt service tax decreased, primary homeowners will see a tax cut.
There are financial realities we must face. Five vacant positions were eliminated to help balance the budget due to revenue shortfalls. Student enrollment declined by 3.5 percent, and new revenue fell sharply, a 72 percent decrease year-over-year and a 58 percent drop in new state revenue. This is the reality, even though the number of special education students rose by 6.7 percent.
Despite serious financial pressures, though, we are making investments in the success of our students and teachers.
This budget aligns with the priorities we set together: invest in our people, protect student services, and be stewards of taxpayer dollars. I am grateful for the input from our community and remain committed to transparency.
