FY26 Budget Presentation - Board Retreat 5-1-2025

AID 1812857 · View on Simbli

Agenda Item

e. FY26 Budget

Summary: Presented by: Mr. Byron Schueneman, Chief Financial Officer, Division of Finance
FY2026 Budget Discussion
        May 1st, 2025
         Budgeting Process Overview


         Local, State, Federal, Updates


         Planned Expenditures

Agenda   • Schools
         • Divisions
         • Initiatives

         Anticipated Resources


         Next Steps


                                          2
Budget Process

                 2
                      FY26
                     Budget

General       Capital
                              SFN   Non-Major
 Fund         Projects

                                        Federal
  Schools        SPLOST
                                       Programs

                                         State
  Divisions       Local
                                       Programs

                                       Student
                                       Activity

                                                  4
                                                  Budget Distribution


           General Fund



                                                40%
 Schools                  Divisions                                         60%



                          Budgeting Approach:
Budgeting Approach:
                             Incremental
       RAMP
                              Budgeting
                                                      Schools   Divisions




                                                                                  5
             FY26                  • Capital Projects
            Budget                    • “Multi-Year” but converted to
                                        anticipated revenue/spend for
Capital                                 FY26 for finance reporting only.
             SFN     Non-Major
Projects
                                   • SFN
                        Federal       • “Business-Like Activity” budget
   SPLOST                               for anticipated revenue/spend for
                       Programs
                                        FY26.
                         State     • Non-Major
    Local
                       Programs       • State & Federal Programs
                                        estimates based on FY25 award.
                        Student
                                      • Student Activity – budgeting not
                        Activity
                                        required.

                                                                      6
                                                                                         DEKALB COUNTY BOARD OF EDUCATION
                                                                            Statement of Revenues, Expenditures and Changes in Fund Balances
                                                                                                  Governmental Funds
                                                                                          For the Period Ended March 31, 2025

                                                                                                                                                                        NONMAJOR                  TOTAL
                                                                                        CAPITAL PROJECTS                                    SCHOOL NUTRITION          GOVERNMENTAL            GOVERNMENTAL
                                                              GENERAL FUND                    FUND             DEBT SERVICE FUND                 FUND                     FUNDS                  FUNDS
REVENUES
 Property Taxes                                         $          905,118,714      $                    -    $                    -    $                    -    $                  -    $         905,118,714
 Sales Taxes                                                         4,422,614                 103,584,067                         -                         -                       -              108,006,681
 State Funds                                                       387,517,741                           -                         -                 1,186,995              21,869,311              410,574,047
 Federal Funds                                                               -                           -                         -                39,550,142             146,113,895              185,664,037
 Charges for Services                                                  951,315                           -                         -                   416,910               4,103,963                5,472,188
 Investment Earnings                                                19,226,132                  21,916,111                         -                         -                  11,379               41,153,623
 Miscellaneous                                                       1,419,629                     314,758                         -                 1,314,279              10,372,065               13,420,732
   Total revenues                                                1,318,656,146                 125,814,936                         -                42,468,326             182,470,613            1,669,410,022

EXPENDITURES
Current
  Instruction                                                      649,093,489                   2,696,070                         -                         -              89,684,545             741,474,104
  Pupil Services                                                    68,795,909                           -                         -                         -              22,735,011              91,530,920
  Improvement of Instructional Services                             13,461,715                   6,870,789                         -                         -               2,508,403              22,840,907
  Instructional Staff Training                                         187,220                           -                         -                         -              20,619,122              20,806,342
  Educational Media Services                                        14,909,065                           -                         -                         -                 437,820              15,346,885
  Federal Grant Administration                                               -                           -                         -                         -               3,284,741               3,284,741
  General Administration                                            46,297,331                           -                         -                         -               1,561,790              47,859,121
  School Administration                                             66,020,876                           -                         -                         -               1,708,875              67,729,751
  Support Services - Business                                       15,733,702                           -                         -                    16,002                 435,630              16,185,334
  Maintenance And Operation                                        138,666,705                   1,240,882                         -                         -               6,259,424             146,167,011
  School Safety And Security                                           270,007                           -                         -                         -               1,240,138               1,510,145
  Student Transportation Service                                    55,773,282                   2,056,427                         -                         -               2,220,648              60,050,357
  Support Services - Central                                        38,844,795                   2,110,478                         -                         -               1,259,230              42,214,503
  Other Support Services                                             1,755,318                           -                         -                         -                 398,478               2,153,796
  School Nutrition Program                                                   -                           -                         -                47,207,659               1,190,292              48,397,951
  Enterprise Operations                                                742,511                           -                         -                         -               2,648,279               3,390,790
Capital Outlays
  Facilities Acquistion & Construction                                       -                 134,665,376                         -                         -              20,012,107              154,677,483
      Total expenditures                                         1,110,551,927                 149,640,022                         -                47,223,660             178,204,532            1,485,620,141
          Excess (deficiency) of revenues over expenditures        208,104,220                 (23,825,086)                        -                (4,755,335)              4,266,082              183,789,881

OTHER FINANCING SOURCES (USES)
 Operating Transfers From Other Funds                                25,708,382                 54,986,031                         -                  464,659                3,323,028               84,482,100
 Operating Transfers To Other Funds                                 (58,040,353)                         -                         -                        -              (26,441,747)             (84,482,100)
 Sale or Compensation for the Loss of Capital Assets                    130,431                  1,062,862                         -                        -                        -                1,193,293
   Total other financing sources (uses)                             (32,201,541)                56,048,893                         -                  464,659              (23,118,718)               1,193,293

        Net change in fund balances                                175,902,679                  32,223,807                         -                (4,290,676)            (18,852,637)             184,983,174
Fund balances - beginning                               $          491,303,220      $          618,640,045    $                    -   $            28,344,821    $         39,942,379    $       1,178,230,465
Fund balances - ending                                  $          667,205,899      $          650,863,852    $                    -   $            24,054,145    $         21,089,742    $       1,363,213,638


The notes to financial statements are an integral part of this statement.




                                                                                                                                                                                                                   7
Local, State and Federal
         Update

                           2
9
10
11
March 2025 –
     Inflation
(South) 1.9%




                 13
   December
  2024 Wage
      Growth
(Government)
       4.5%

               14
              FY26 Salary & Benefit Considerations
                              *Unofficial as of 4/22/25 and subject to change
   District            Certified              Classified
    Cobb              Step Only               Step Only
   Fulton            Step + 2.5%             Step + 2.5%
Marietta City         Step + 2%                  1%
Atlanta Public
Decatur City         4% minimum              3% minimum
  Gwinnett           Step + $1,000            Step + 1+%
                 Retention $500-$2,000   Retention $500-$2,000
   Forsyth            Step Only               Step Only
   Clayton            Step Only               Step Only
  Cherokee            Step Only               Step + 3%
  Rockdale           Step + 2-3%             Step + 2-3%
   Henry          Step + Incremental        Admin + $1,300
                     Improvement            Classified +3%
 February 2025
Unemployment
          3.6%




                 16
Local Tax Digest




                   17
Local Tax Digest




                   18
                             FY2025       FY2026     % Change   FY26 Budget Impact
QBE Earnings                $591.3M      $619.7M       4.8%          $23.4M
Classified SHBP              $18,960      $22,620     19.3%          $14.5M+
Certified SHBP               $21,120      $22,620      7.1%          $10M+
TRS                          20.78%       21.91%       5.4%          $10M+
DCSD Vacancy Rate          5.6% / $56M   4% / $40M    28.5%          $11M+
QBE Local Fair Share        $183.1M      $187.6M       4.2%          $4.5M+
Property Tax Delinquency      2.5%          3%         20%           $4.5M+
Gold Case                    $22.5M          0         N/A           $22.5M




                                                                              19
Strengths Challenges

                   Tax Digest

       QBE
                     ESSER

    Gold Case
                  SHBP & TRS

  Fund Balance   Labor Market
                  Conditions




                                20
Planned Expenditures
      Schools

                       2
Fall 2025 Enrollment Forecast
                         After modeling new housing
                         developments, birth data, and
                         historic enrollment patterns, the
                         enrollment forecast for October
                         2025 is 92,235 students or up
                         169 students from current
                         enrollment.




                                                             6
Fall 2025 Enrollment Forecast
                        1. Elementary enrollment is
                           expected to increase slightly
                           mostly depending on the
                           number of kindergarteners
                           next year.
                        2. Middle-school enrollment is
                           expected to decrease
                           slightly with smaller in-
                           coming 6th grade classes
                           than out-going 8th grades
                           classes.
                        3. High-school enrollment is
                           expected to decrease
                           slightly with smaller in-
                           coming 9th grade classes
                           replacing larger graduation
                                                           7
                           12th grade classes.
Resource
Allocation
Method/Plan

              24
Resource
Allocation
Method/Plan

              25
     Exhibit A


                                                 Allotment / FTE Average Salary Calculation
      School Position Title   FY2026 $ Total        FTE        Average Salary   State Health   TRS         Other        Avg Sal + Benefits
Bookkeeper                        9,826,801.19           126        49,122.49      17,000.00   10,762.74     1,105.26            77,990.49
Counselor                        34,506,663.50           270        89,241.67      17,000.00   19,552.85     2,007.94           127,802.46
Library Media Assistant           7,472,211.72           121        36,251.66      17,000.00    7,942.74       815.66            62,010.06
Media Specialist                 15,588,462.47           124        87,559.12      17,000.00   19,184.20     1,970.08           125,713.41
Paraprofessional                 34,285,122.69           645        29,119.87      17,000.00    6,380.16       655.20            53,155.23
Principal                        24,511,147.83           128       140,539.10      17,000.00   30,792.12     3,162.13           191,493.34
Assistant Principal              38,790,324.91           247       112,794.66      17,000.00   24,713.31     2,537.88           157,045.85
Registrar                         3,466,231.62            43        51,232.31      17,000.00   11,225.00     1,152.73            80,610.04
School Nurse                     10,679,095.27           124        55,671.50      17,000.00   12,197.63     1,252.61            86,121.74
Speech Language Pathologist      11,470,029.94           104        75,349.96      17,000.00   16,509.18     1,695.37           110,554.51
Social Worker                     6,397,573.87          53.5        82,619.86      17,000.00   18,102.01     1,858.95           119,580.82
Special Ed Lead Teacher          17,376,495.24           134        90,750.11      17,000.00   19,883.35     2,041.88           129,675.34
STAR Sub                          6,817,206.97           127        29,541.56      17,000.00    6,472.55       664.68            53,678.80
Teacher                         708,809,873.76         6389         75,665.73      17,000.00   16,578.36     1,702.48           110,946.57
Psychologist                      5,406,599.48            43        88,527.29      17,000.00   19,396.33     1,991.86           126,915.48
Secretary                        18,080,890.60           254        43,640.95      17,000.00    9,561.73       981.92            71,184.61
ISS Paraprofessional              1,101,826.43            21        28,566.31      17,000.00    6,258.88       642.74            52,467.93
MTSS                             15,489,827.65           116        93,857.12      17,000.00   20,564.09     2,111.79           133,533.00
FACE Advocate                     3,132,097.36            45        42,366.43      17,000.00    9,282.49       953.24            69,602.16
                                973,208,482.50        9,113




                                                                                                                                    26
                                 Consumable       Instructional                                Non-Vocational
                                                                      Travel       Equipment                         Total       Media Books
                                  Materials         Materials                                  Lab Equipment

Kindergarten                 $       40.16    $       30.86       $     0.93   $      6.20     $         -      $    78.15   $      15.31
Kindergarten EIP             $       40.16    $       30.86       $     0.93   $      6.20     $         -      $    78.15   $      15.31
Grades 1 to 3                $       33.21    $       48.65       $     0.93   $      3.11     $         -      $    85.90   $      15.31
Primary Grades 1-3 EIP       $       33.21    $       48.65       $     0.93   $      3.11     $         -      $    85.90   $      15.31
Grades 4 to 5                $       26.51    $       39.87       $     0.93   $      3.11     $         -      $    70.42   $      15.31
Grades 4-5 EIP               $       26.51    $       39.87       $     0.93   $      3.11     $         -      $    70.42   $      15.31
Middle Grades                $       26.51    $       39.87       $     0.93   $      3.11     $         -      $    70.42   $      13.03


                                                                                                                                               $10.4M
Middle School 6 to 8         $       26.51    $       39.87       $     0.93   $      3.11     $         -      $    70.42   $      13.03
Grades 9 to 12               $       35.91    $       55.65       $     0.93   $      3.11     $    18.00       $   113.60   $      13.03
Special Education Level 1    $     149.48     $       57.65       $     0.93   $     40.90     $         -      $   248.96   $      13.03
Special Education Level 2    $       38.88    $       33.73       $     0.93   $     57.81     $         -      $   131.35   $      13.03
Special Education Level 3    $       51.06    $       30.21       $     0.93   $    122.00     $         -      $   204.20   $      13.03
Special Education Level 4    $     220.45     $       48.69       $     0.93   $    152.35     $         -      $   422.42   $      13.03
Special Education Level 5    $     220.45     $       48.69       $     0.93   $    152.35     $         -      $   422.42   $      13.03
GNETS Program                $       26.51    $       39.87       $     0.93   $      3.11     $         -      $    70.42   $      13.03
Gifted                       $       53.27    $       22.92       $     0.93   $     23.78     $         -      $   100.90   $      13.03
Remedial Education           $       32.00    $       21.49       $     0.93   $      3.02     $         -      $    57.44   $      13.03
Vocational High School Lab   $     140.60     $       24.95       $   26.32    $    136.33     $         -      $   328.20   $      13.03
ESOL                         $       32.00    $       21.49       $     0.93   $      3.02     $         -      $    57.44   $      13.03



                                                                                                                                                   27
• New initiative - $200 to every teacher
  for supplies.
• Loaded directly to ClassWallet platform
  for teachers to order supplies through
  eProcurement platform.
• Supplies packaged and delivered
  directly to schools to the attention of
  the teacher.
• Total cost ~ $1.4M



                                            28
Planned Expenditures
      Divisions

                       2
                 Incremental Budgeting
• Incremental budgeting is a budgeting method where a new budget is
  created by making small adjustments to the previous period's budget. It's a
  common approach, particularly for stable organizations, where the new
  budget builds upon the last year's budget, adjusting for factors like
  inflation, expected income changes, or new expenses.
• Rolled over Divisional Budgets, accounted for TRS / SHBP increases and
  made minor adjustments for other known needs.
• After our last finance steering committee, we asked for a 5-10% reduction
  by division.
• No reductions to schools.


                                                                              30
                     Ongoing Funded Initiatives

• Refer to Exhibit B in handouts.




                                                  31
Exhibit C

            Division Budgets




                               32
Anticipated Resources

                        2
                   Quality Basic Education (QBE)

                            2023                2024                2025                2026              Change
FTE (Student Counts)        95025               93528               92745               93513               768
QBE Earnings           $640,532,302.00     $685,346,303.00     $713,379,382.00     $761,584,895.00     $48,205,513.00
Local Fair Share       $(152,200,410.00)   $(175,655,286.00)   $(183,008,042.00)   $(187,559,598.00)   $(4,551,556.00)
Pupil Transportation    $5,276,006.00       $5,276,006.00       $11,038,070.00      $11,324,504.00      $286,434.00
Nursing                 $2,141,160.00       $2,168,189.00       $2,242,395.00       $2,276,309.00        $33,914.00
Charter Supplement       $491,722.00         $510,680.00         $544,588.00         $558,170.00         $13,582.00
                       $496,240,780.00     $517,645,892.00     $544,196,393.00     $588,184,280.00     $43,987,887.00
Local Property Tax




                     35
Resources




            36
              General Fund Revenue Projection
                                           Revenue in Millions

FY2026              588.2                                                    940.2                            68.2


FY2025             544.5                                              919.7                                80.9


FY2024         517.6                                               868                              69.1


FY2023        496.9                                     745.9                                 63

         0   200            400   600                 800              1000            1200        1400           1600   1800
                                        State (QBE)         Property Taxes     Other                                            4
Fund Balance Policy DCL
Fund Balance Usage

             March 31st, 2025
                                 667,000,000.00
             Change April-June
                                 (275,000,000.00)
             FY26 Starting FB
                                 392,000,000.00
            Change July-August
                                 (80,000,000.00)
               Lowest Point                         18.9%
                                 312,000,000.00
            FY26 FY Max Usage
                                 (55,000,000.00)
             FY27 Starting FB                       15.6%
                                 257,000,000.00
Summary

          2
                                  FY25 INITIAL BUDGET   $ 1,571,958,397.00
                                   XFER DIFFERENCE      $ (18,754,843.00)
                                      GOLD CASE         $ (22,500,000.00)
                                           TRS          $    10,000,000.00
                                          SHBP          $    24,500,000.00
                                    SALARY SAVINGS      $    11,000,000.00
• FY25 to FY26 Reconciliation             MTSS          $    15,000,000.00
                                          LTSE          $     3,400,000.00
                                      SPED STAFF        $     6,200,000.00
                                SCHOOL DISCRETIONARY    $    12,000,000.00
                                      SUB BUDGET        $     3,000,000.00
                                         IGNITE         $     2,300,000.00
                                     CONTINGENCY        $     6,000,000.00
                                         GIFTED         $     2,000,000.00
                                        CHARTER         $     8,000,000.00
                                    REMAINING NET       $     8,860,361.52
                                  FY26 INITIAL BUDGET   $ 1,642,963,915.52



                                                                             42
                         General Fund Budget Summary



Category                            Subtotal           Total         Reference
Total Anticipated Revenues                        1,596,590,539.99    Exh. C
Planned Expenses - Schools       973,208,482.50                       Exh. A
Planned Expenses - Divisions     697,257,404.83                       Exh. B
Division Cuts                    -27,501,971.81                       Exh. B
Total Anticipated Expenses                        1,642,963,915.52
Change in Fund Balance                             -46,373,375.53
Timeline

           2
                               Budget Timeline
• Thursday, May 1st – Board Retreat at Georgia Tech
    • Initial presentation of the FY26 General Fund Budget
• Thursday, May 1st – Tax Digest Approved, distributed to DCSD May 2nd
• May 5th / May 6st – BOE Mini-Sessions to review tax digest and discuss millage rate, finalize recommendation
• Monday, May 12th - Executive Session, Work Session, Community Input Session & Business Meeting
    • Tentative Adoption of the Proposed FY2026 Budget/Revenue Projection
    • Resolution to Approve the “Estimated Rollback Rate” (22.88) & transmit to Tax Commissioner
• May 12th – Transmit signed resolution to approve “Estimated Rollback Rate” to Tax Commissioner
• May 30th – 1st Budget Presentation & Millage Rate Hearing 10:00 AM.
• June 2nd – 2nd Budget Presentation & Millage Rate Hearing 6:00 PM.
• June 9th – 3rd Millage Rate Hearing at 10:00 AM.
• June 9th - Executive Session, Work Session, Community Input Session & Business Meeting
    • Approval of the Final Tax Levy Resolution (22.88)
    • Adoption of the Final FY2026 Budget/Revenue Projection for all funds




                                                                                                                 45
QUESTIONS


            8