The Lexington County School District One Board of Trustees amended the district’s 2026–27 General Fund Operating Budget during a special-called meeting on Thursday, June 25, 2026.
The latest: The amended budget totals $419,028,157 for the fiscal year that begins July 1, 2026. It uses $9,391,212 in fund balance, increases operating millage by 23.5 mills and reduces debt service millage by 11.8 mills.
The Board first approved a 2026–27 General Fund budget on June 16 following a public hearing and third reading. In that motion, Board members agreed to receive additional information and consider a budget amendment before June 30 to address remaining listed expenditures and funding options.
Why it matters: The amended budget continues the district’s focus on taking care of our employees while also funding required costs and maintaining services for students and schools.
What the budget includes: The budget supports pay increases for employees across the district, including:
- Increasing the starting teacher salary to $52,500
- Increasing all salary schedules
- Providing a step increase to all eligible employees
The big picture: Investing in employees helps Lexington One recruit and retain the best teachers and staff who serve students and families each day.
It also supports the district’s strategic plan by helping Lexington One:
- Maintain high-quality teaching and learning
- Support safe, positive and welcoming schools and work environments
- Use resources in ways that support students, employees and long-term district needs
What else the budget funds: In addition to employee pay, the final approved budget supports:
- State and federal special education compliance needs
- Lexington One standards, such as staffing ratios
- Increase costs of doing business, including utilities, insurance, service contracts, repairs and maintenance, safety and security costs, substitute costs, software and technology licenses and internet bandwidth.
Tax impact: The operating millage increase does not apply to owner-occupied homes.
Under Act 388, passed in 2006, homeowners do not pay school operating property taxes on their owner-occupied homes.
What homeowners will see: At the same time, the district is reducing debt service millage, which appears on tax bills as “School 1 Bonds.”
Debt service millage will decrease by 11.8 mills, from 90 mills to 78.2 mills. Because of the one-cent sales tax generated by the Lexington County School District Property Tax Relief Act, a portion of the remaining school bond millage is offset by a tax credit.
With the millage reduction and the tax credit, a Lexington One resident with an owner-occupied home valued at $100,000 is projected to see a decrease in school taxes on that home from about $127 to approximately $80 a year.
What this means for other taxpayers: The operating millage increase does apply to other taxable property, including vehicles, commercial property, rental property and non-primary residences.
Those property owners will see a tax increase as a result of the operating millage increase. The reduction in debt service millage will provide a reduction on the debt service portion of their tax bills. The amended budget helps offset an increase of approximately $10 million in local operating revenue with a decrease of approximately $10 million in debt service revenue.
Why this is an investment: Strong schools help support strong communities. Lexington One’s schools help attract families, employees, businesses and opportunity to the area. The amended budget supports the people and services needed to maintain and build on Lexington One’s tradition of excellence.
“We appreciate the Board’s diligent work and the significant time members spent reviewing, questioning and discussing this budget,” said Dr. Keith Price, superintendent.
“Their work reflects a shared commitment to maintaining Lexington One standards while recognizing that South Carolina’s funding formula places much of the responsibility for those standards on local businesses and other taxpayers. We take that responsibility seriously. Lexington One remains committed to being a good steward of every tax dollar by using resources wisely, recruiting and retaining excellent employees, and efficiently meeting the operational needs of the district so that all students can learn, grow and excel.”
Board oversight: Board members asked district leaders to continue reviewing spending, budgeting practices, staffing, contracts and other expenses to make sure any tax increase is justified.
District administrators have identified savings, reductions, repurposed funds and funding-source changes as part of the 2026–27 budget process. The district will continue analyzing costs to ensure resources are allocated intentionally and responsibly.
Fund balance note: Relying on fund balance for ongoing operating costs is not sustainable long term. However, the Board has asked district leaders for several years to budget more accurately and reduce the trend of budgeting to use fund balance but ending the year with additions to fund balance.
How we got here: The budget process included:
- December 2, 2025 budget workshop
- March 10, 2026 budget workshop
- April 21 first reading
- May 8 budget workshop
- May 19 second reading
- June 16 public hearing and third reading
- June 25 budget amendment meeting
Throughout the process, district leaders shared budget presentations, worksheets and the full General Fund Operating Budget Book with the Board and the public.
Bottom line: The amended budget helps Lexington One prepare for the new fiscal year by investing in employees, funding required costs, maintaining services for students and schools, and balancing local revenue with a planned use of fund balance.
