District presents FY27 budget with employee-step proposals, benefit cost pressures and a possible mid‑year retention supplement

The Clarke County School District presented a draft FY27 general fund budget on April 2, highlighting revenue and enrollment assumptions, expected increases to employer benefit costs, and proposed employee compensation steps and supplements.

Chief Financial Officer reported estimated FY27 revenues slightly above $261 million under current assumptions: a 6% estimate for property-digest growth (tax assessor data pending), a 1% delinquency factor, and a 2.5% tax-collection fee. The district budget presently assumes a millage rate of 18.8 mills and deducts an estimated $4.3 million for proposed state tax legislation currently under consideration.

On the expenditure side, staff proposed continued step increases, extension of salary tables to help employees at higher salary steps, continuation of the 403(b) match and consideration of long‑term disability for employees. The presentation emphasized benefit pressures: an estimated increase in certified health insurance costs and a small increase in the TRS employer match (from 21.91% to 22.32%). The salary-and-benefits delta was presented as roughly $5.8 million, with health-insurance increases estimated at $3.3 million.

Board members discussed two competing approaches to employee compensation: a recurring 1% cost-of-living adjustment (estimated $1.8 million recurring) versus a one-time mid‑year retention supplement (a $500 payment to full-time employees, estimated $1.4 million one-time). Staff noted the mid‑year payment would be a one-time fund-balance use while the COLA would create a recurring obligation.

Budget health: the draft projects a beginning fund balance of roughly $51.4 million and a projected ending fund balance around $50 million if the retention supplement and supply stipends are included — equivalent to roughly 2.37 months of operating reserves. Finance staff noted state peers average around 3.8 months at FY24 year‑end and said policy and legislative changes could quickly affect district projections.

Board members also questioned the budget allocation for restorative-practices support: staff said the GCC (Georgia Conflict Center) year-three package was budgeted at about $26,000 based on a district needs assessment, but several board members and community advocates asked whether that figure should be increased to $50,000 to ensure equitable coverage across schools.

Next steps: the board will consider a tentative budget at its May 14 meeting, run required millage and budget notices and hold public hearings before final approval on June 11.

Key numbers (district presentation): estimated total revenues ~$261M; projected beginning fund balance $51.4M; proposed one-time mid‑year retention supplement (if approved) ~$1.4M; estimated cost of 1% recurring COLA ~$1.8M.