Budget Discussion BOE Retreat 11.14.25

AID 1899078 · View on Simbli

Agenda Item

1. Budget Discussion ~ Updated 11.14.2025

Summary: Presented by: Mr. Byron Schueneman, Chief Financial Officer, Division of Finance
FY2027 Budget Discussion
   November 14th, 2025


                    1
Setting the Stage

                    2
                   Historical Digest Changes
                                        Net Digest Values (Billions)
FY2026                                             44.13
FY2025                                            42.43
FY2024                                     39.26
FY2023                                 34.45
FY2022                         29.84
FY2021                       27.50
FY2020                      26.04
FY2019                 23.84
     0.00   5.00   10.00        15.00          20.00            25.00       30.00     35.00      40.00   45.00   50.00
                   FY2019     FY2020     FY2021        FY2022      FY2023   FY2024   FY2025   FY2026

                                                                                                                         4
                     Historical Millage Rates
The “Estimated Rollback Rate” for FY26 was tentatively set at 22.78 mills on May 12, 2025.

                                 Millage    *Value of 1   *School    % Change
       Fiscal Year    Tax Year
                                  Rate         Mill         Tax       TY 2019
        FY2026         2025       22.78        44.2        1,005.9     69.1%
        FY2025         2024       22.88        42.4        970.8       63.2%
        FY2024         2023       22.98        37.6        901.7       51.6%
        FY2023         2022       23.08        34.4        793.1       33.3%
        FY2022         2021       23.08        29.8        687.8       15.6%
        FY2021         2020       23.08        27.3        630.3        5.6%
        FY2020         2019       23.08        25.8        594.9         0%
        FY2019         2018       23.18        23.8        552.7

                                                                                             5
FY2025 DCSD GF
Balance: -$42.3M
170.7M
180.0M   +8.3M
183.5M   +3.5M
Historical State Health Benefit Rates




                                        9
                                             • Construction
                                             • Supplies
                                             • Energy
                                             • Contracted Services

                            Inflation




             Personnel
               Cost

• SHBP
• TRS
• Salaries
                                         General Fund
                                           Budget
                • QBE - not keeping
                  pace
                • Local Property Taxes



                                                                     10
11
• Along with 65% of school systems throughout
Georgia, DCSD held 3 public hearings and
adopted a formal resolution to opt out prior to the
deadline of March 1st 2025.




                                                      12
                                  Tax Increase   Inflation
                                      2.8%         2.9%


       2025 Tax Year
*DeKalb taxpayers better off on
average with the 1/10 mill
reduction than had DCSD
remained in HB581.




                                                             13
             2025 HB 92 (2024 HB581 2.0)
New opt-out rules
The updated law in HB 92 introduced a process for governments that opted out of HB 581
to maintain their exclusion from the floating homestead exemption.

• Annual renewal (2026–2029): For tax years 2026 through 2029, a local government that
  wants to continue opting out must renew its opt-out status.
• Process: To renew the opt-out, the local government must hold three public hearings
  and pass a new resolution by March 1st 2027. Recommend to do January/February 2026
  while the momentum is on our side AND so that this process does not conflict with
  SPLOST 7 referendum in November.
• Automatic opt-in: If an opting-out government fails to follow this annual renewal
  process, the statewide floating homestead exemption will automatically take effect in
  that jurisdiction.
• Notice on tax bills: All jurisdictions that have opted out of the floating exemption are
  required to include a clear notice on each homestead property's ad valorem tax bill.

                                                                                             14
FY2027 Budget

                15
FY27 Budget
  Timeline



              16
                FY2027 Budget Guiding Factors

• Limit Increases for General Fund to 3%
• End Goal – Develop a budget with the end goal in mind, utilizing an allocation
  process.
• Realizes areas for allocation reductions
• Includes RFPs/Contract renewals for FY2027
• Allocates 3% to S&B initiatives.
    • Considers defined contribution plan (403b) matching
    • Considers COLA or targeted increases
• Includes investment in facilities
• Set aside for Superintendent Initiatives
• Recognizes allocation shifts in response to stakeholder feedback.
• Reduces millage & complies with spirit of HB92 & 581
• Prioritizes maintaining a healthy fund balance.


                                                                                   17
                FY27 Budget – Munis Access Levels
1. Allocated – Initial allocations determined by Finance (operational only) – by 11/15
2. Requested – Changes and modifications and new requests by Locations (department level) by
   12/31
3. Chiefs – Review and finalize by chief at the division level. (add in positions) by 2/15
4. Finance – Superintendent and Finance to develop initial budget for presentation to the board.
   Prior to board retreat.
5. Adopted – Board approved by 6/30




                                                                                                   18
                                      3% S&B Set Aside


                                              • Still early on. This will shape up as we get
                       Salaries & Benefits      more definitive information on SHBP, QBE and
FY2026 Budget          $1,277,300,000           our tax digest.
FY2027 Budget Goal     $1,319,400,000         • Goal is still to limit tax increases at or below
                                                inflation and reduce the millage rate.
Difference             +$42,100,000
                                              • Will develop various packages / scenarios for
FY2027 TRS Increase    -$3,500,000              consideration on how to allocate the $23.6M.
FY2027 SHBP Increase   -$15,000,000               • Step Increase
Remaining              $23,600,000                • Provide 1.5% COLA
                                                  • Enhance 403b contributions




                                                                                                   19
A Better Path to Priority-Based Budgeting:
How Do We Get There and What’s the Payoff?
 Georgia ASBO 2025
Predict Program Alignment
(Scoring Evaluation)
FTE & CPI
October 2025


               23
October 2025 FTE Summary




                           24
October 2025 CPI Certified Fund Code Summary




                                               25
                     October 2025 CPI – T&E + HI




Total FY27 T&E +HI = $319,342,283



                                                   26
      October 2025 CPI – T&E + HI



             FY26 Initial   FY27 Anticipated
T&E          $170,674,190   $168,874,043
HI           $141,465,480   $150,468,240
             $312,229,670   $319,342,283




                                               27
Class Wallet

               28
                                Class Wallet


• Rubric – Must be the teacher of record for at least 1 class within the student
  information system.
• Original FY26 Budget - $1.3M
• 5,373 Accounts created and funded = $1,074,600
• Amount expended as of 11/13 = $334,312.72, or 31%
• Set up automatic reminder notifications from ClassWallet to be sent on 15th of
  every month.
• Set up a districtwide news blast to be released at the same time.




                                                                                   29
Purchase Order Report

                    30
                                              Purchase Order Report


Purchase Order

                              Contract Approval
Will be established for all
dollar amounts and                                      Contract Management (Munis)
reference the contract when   ICA
applicable.                   • Board if ICA > $50K
                              • Supt if ICA is < $50K   ICA or Contract in excess of
                              Contract                  $25K will be set up in Munis
                                                        by Legal
                              • Board if > $100K
                              • Supt if < $100K




                                                                                       31
                    Purchase Order Report




• Contains all purchase orders approved during the fiscal year (column A).
   • “What has been approved to be spent?”
• Provides the contract # (column F) if applicable.
   • Only contracts and ICA’s exceeding $25,000 are set up
• Reports the total amount of the PO for that object code (column G)
   • “How much is authorized”
• Total amount expended on PO (column H)
   • “How much has been spent against this PO/contract so far?”
• Object code (column I)
   • “What is being purchased?” Anything that starts with a 53**** will be service
      related.                                                                       32
Questions?


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