Tentative Millage Rate Resolution

AID 1817907 · View on Simbli

Agenda Item

b. Tentative Budget/Revenue Budget Projections and Tentative Tax Levy for FY2026 ~ Updated 5.9.2025

Summary: Presented by: Mr. Byron Schueneman, Chief Financial Officer, Division of Finance
Request: It is requested that the Board of Education approve the FY26 Tentative Budget for all funds, the resolution to certify the estimated roll back rate for calendar year 2025, and another resolution to approve the Tentative Tax Levy for calendar year 2025 which funds the District's FY26 Tentative Budget.
Details: The FY26 Tentative Budget All Funds includes estimated revenues and expenditures for all governmental funds including the preliminary operating general fund budget, capital outlay, school nutrition and non-major funds.

The tentative budget for the general fund accounts for local revenues based on an assessed millage rate of 22.78. This represents a tenth of a mill reduction from the 2024 millage rate funding FY25, the current fiscal year. The total general fund budget includes revenues of $1,619,511,295, expenditures of 1,635,130,946, transfers out to support other non-major funds of $8,100,000 and the includes a planned spend down of the general fund's fund balance of $23,619,651.

The tentative budget for capital projects includes estimated annual revenues of $173,475,000, expenditures of $270,555,684, no transfers in at this time to support the districts generally funded capital project account, and an overall planned spend down of capital project fund balance of 97,080,684. Keep in mind that this budget is an estimated annual spend. Capital Projects (SPLOST V and VI) are multi-year funds, and the overall budgets approved for each project trumps this annual projection.

The school nutrition fund includes revenues from all sources of $83,832,367, expenditures of $85,832,367, transfers in of $100,000 and an intentional fund balance spend down of $1,900,000. It is important to note that 97% of the revenues for this program come from the federal government by way of the child nutrition grant (breakfast/lunch/snack).

The final column for non-major funds includes reimbursable state programs of $27,388,174 and federal programs of $115,127,996 which are included in the total anticipated revenue of 150,946,833. Correspondingly there's $159,827,631 of planned expenses and $8M of additional support from the general fund to support ROTC, Athletics, and Bright from the Start programs. The total planned fund balance reduction is $880,798.

It is important to note that this consolidated budget for all funds for FY26 includes anticipated federal revenues $196,347,612. This supports substantial district programs such as school nutrition to a tune of $81,219,616, Title I at $55,668,135, Special Education at $36,599,502, Title II at $9,670,183, Title III at $3,708,818 and Title IV at $4,476,115. While we develop a financial plan for the district which includes anticipated revenues and expenditures for all funds, it is vitally important to note the most recent "skinny budget" for the Federal Government includes a reduction of $13.7B to USDOE, aiming to dismantle the agency and transfer its functions to other agencies. It also includes shifting both Title I and Special Education to block grants and granting states more discretion over the use. It also proposes cuts and eliminations of key programs like Title II to a tune of $2.4B.

Given the current uncertainty surrounding the educational funding landscape, as well as planned recurring expenditures of the district, we recommend a millage rate of 22.78. This is a reduction of a tenth of a mill and even though we saw a 3% increase in the value of the digest due to revaluation, the overall tax increase due to reassessment is less than the rate of inflation as measured by the Consumer Price Index for all Urban Consumers (CPI-U) for 2024. Furthermore, even though the district opted out of HB-581, this recommendation would be compliant had we opted in.

By approving the tentative budget as well as the two attached resolutions, the board of education is permitting district administration with advertising the budget and millage rate and holding the required hearings to receive vital feedback from district stakeholders.
Contact: Mr. Byron Schueneman, Chief Financial Officer, Division of Finance, 678.676.0270
Status: Legal Approval Not Required
                                                                   Mrs. Deirdre P. Pierce, Board Chair
                                                                      Ms. Allyson Gevertz, Vice Chair
                                                                                 Mr. Andrew B. Ziffer
                                                                              Ms. Whitney McGinniss
                                                                                 Tiffany Hogan, Ph.D.
                                                                               Mr. Diijon DaCosta, Sr.
Dr. Devon Q. Horton, Superintendent                                                   Mr. Awet Eyasu

                                             May 12, 2025

 WHEREAS, the DeKalb County Board of Education is required by law to make annually a
                 recommendation of the millage rate to be levied.

 BE IT, THEREFORE, RESOLVED, that the DeKalb County Board of Education does hereby
   recommend the tax levy for the support and maintenance of education as follows:

Twenty-two and seventy-eight hundredths (22.78) mills on all taxable property located in
 the DeKalb County School District for the support and maintenance of education in said
                                 DeKalb School District.

BE IT FURTHER RESOLVED, that a certified copy of this resolution be forwarded to the Tax
 Commissioner, and the Board of Commissioners of said County, with a request that the
 levy of taxes for the calendar year 2025 shall include the tax herein recommended and
    that all sums derived there from be paid to the DeKalb County Board of Education.




                               ______________________________
                                      Ms. Deirdre P. Pierce
                                Chair, DeKalb Board of Education


                              ______________________________
                                     Dr. Devon Q. Horton
                          Superintendent, DeKalb County School District




Robert R. Freeman Administrative Complex
1701 Mountain Industrial Blvd. | Stone Mountain, GA 30083
678.676.1200 | dekalbschoolsga.org