Budget Discussion BOE Retreat - January 21, 2026 - DCSD Board Meeting Archive

FY2027 Budget Discussion
January 21st, 2025

1
Governor’s Budget
AFY2026 & FY2027

2
State of the State Address
January 15th, 2026

• Tax rebate $250 Single to $500 Married
• 2 basis point reduction to 4.99% income tax rate
• Maintain reserves > 10B (3 months operating)
• $2K one time supplement for all state employees and educators
• Noted total salary increase since 2019 of $9,500 or 28% increase
• Maintain investment school safety – close to $50K per school in FY27
• Dream Scholarship – Hope 2.0 (needs based)

3
AFY2026 State Budget
https://opb.georgia.gov/budget-information/budget-documents/governors-budget-reports

Recommended Change (Exhibit A):
Increase funds to provide a on-time salary supplement of $2,000 for:
1. Custodians (pg. 177)
2. SFN workers (pg. 178)
3. Bus drivers (pg. 178)
4. Certified educators and administrative staff (pg. 179)
5. School nurses (pg. 179)

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FY2027 State Budget
https://opb.georgia.gov/budget-information/budget-documents/governors-budget-reports

Noteworthy Recommended Changes:
1. Increase funds for the Teachers Retirement System to reflect an increase in the
actuarially determined employer contribution from 21.91% to 22.32%. (pg. 185,
$36,400,437)
2. Increase formula funds to reflect an increase in the health insurance employer
contribution per-member-per-month rate for eligible employees from $1,885 to
$2,028 effective July 1, 2026.
Not in Budget:
1. Salary increases to teachers or any other groups of employees
2. Amendment to the QBE formula for a poverty weight.

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6
• 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.

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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 March/April 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.

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DCSD Budget Calendar
FY2027

9
FY27 Budget
Timeline

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FY2027 Budget Development
1. 2026-1 October FTE Count >> FY2027 FTE Predictions (refer to Exhibit B)
2. School funding allotments (refer to Exhibit B)
3. Community stakeholder survey is live, will close February 14th.
4. Pre-allotments (refer to Exhibit C) and pre-allotment meetings
5. Initial revenue projection (refer to Exhibit D)
6. Divisional Operational Budgets (refer to Exhibit E)
7. CPI-U as of December 2025 – 2.7%

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FTE 26-1 >> FY27
Projected FTE

12
October 2025 FTE Summary

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Pre-Allotments

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Initial Revenue
Projection

17
FY2027 Initial Revenue Projection

18
Division Operational
Budgets

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FY2027 Division Operational Budgets

20
CPI-U December 2025

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FY2027 Budget Development
Remaining Items
1. HB92 Affirmation of HB581 Opt Out
1. Hearing 1 - Monday, March 30th, @ 6:00 p.m. – Board Room
2. Hearing 2 - Monday, April 13th, @ 10:00 a.m. – Board Room
3. Hearing 3 - Monday, April 20th, @ 10:00 a.m. – Board Room
4. Formal Adoption of Resolution – Monday, April 20th @ 11:30 a.m. – During Board
Meeting
2. Final Revenue Projection
1. QBE – Mid April
2. Property Tax Digest – Early May (refer to Exhibit F)
3. Salary and Benefit Projections
1. Schools – Based on RAMP
2. Divisions – Flat / subject to Central Office Operational Assessment
4. Survey – by February 14th
5. Finalize Initiatives

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FY27 Possible
Initiatives
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FY2027 Potential Initiatives
• Budget neutral - Horizon area support (strongly encouraged)– utilize existing budget to offer:
• Continued ongoing support, plus
• Investigate adding a kindergarten para using funds
• Investigate providing transfer incentive
• $2.4m Kindergarten paraprofessionals (as funding allows)
• Salary Increases
• $5.0m Step increases (strongly encouraged)
• $12.0m for 1% COLA (as funding allows)
• Benefit Increases
• $3.5m TRS increase (mandatory)
• $18.5m SHBP increase (mandatory)
• 403b vesting / matching contributions (as funding allows)
• Curriculum adoption
• $14.5m - Social Studies (strongly encouraged)
• $14.5m - Science (strongly encouraged)
• Investment in facilities (as funding allows)
• Continue to reduce millage rate (as funding allows) 25
FY2027 Potential Initiatives

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FY2027 Budget
Summary
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FY27 Budget – Allocation

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Key Takeaways

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Key Takeaways
1. Georgia Income Tax Reduction / Elimination
2. AFY2026 governor recommended budget provides $2,000 one-time payment before June 30th
3. FY2027 governor recommended budget includes funds for increase in TRS, SHBP, but no salary
increase.
4. 2026 legislative session includes bills that would make participation in a floating homestead
exemption mandatory or impact local property taxes in other ways.
5. Property tax digest unknown at this time, however the plan is to cap the tax increase to no more
than 2.7% as defined by CPI-U. Goal is to further reduce the millage rate if possible.
6. Significant shift in recent years, costs increasing without corresponding revenue increases and a
high focus on limiting property taxes. Emphasizes the need to focus on efficiency with resources
provided. Any new initiatives and expenses offset by reductions elsewhere in the budget.
7. Will continue to evaluate budget initiatives and priorities as the remaining pieces of the puzzle
come together.

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Questions?

Agenda Item