Paulding County board hears preliminary FY26 budget and receives clean audit reports

At its April 1 meeting, the Paulding County School Board received a first look at preliminary fiscal 2026 general fund revenue and expenditure projections that show a $1.4 million decline in revenue and new costs driven largely by rising employee health insurance and a drop in state equalization funding.

Anna, a district finance staff member, told the board the district is projecting a $1,400,000 decrease in preliminary general fund revenue largely because equalization is expected to fall by $5,000,000 while local fair share and ad valorem taxes are projected to rise. She also told the board projected health insurance cost increases of $3,800,000 tied to higher state health benefit rates.

The district also reported a projected enrollment decline of 93 students for fiscal 2026. That decline is tied to preliminary allotment changes the presenter said would reduce 87 general education allotments; the presenter also referenced a separate figure of a ‘‘total decline of 12 allotments’’ that was not clarified during the presentation. The finance presenter said district staffing remains focused on instruction and school-level support, and that roughly 90% of the general fund budget covers salaries and benefits.

Why it matters: the combination of lower state equalization, higher health insurance costs and falling enrollment reduces available allotments for classroom positions and affects how the district balances its budget going into FY26.

The presentation included these headline figures from the district's preliminary budget slides: a $1.4 million net decrease in general fund revenue; a $2.7 million increase in local fair share; a $4.9 million projected increase in preliminary local taxes (driven by an estimated $4.4 million ad valorem increase); and a $5.3 million projected increase in benefits costs. Anna told the board the state will no longer cover part of the cost for classified employees, creating a district obligation for those premiums.

Anna also reviewed the district’s fiscal 2024 audited financial statements and federal-award compliance results. She said auditors issued an unmodified ("clean") opinion for both the financial statements and federal awards and identified no material weaknesses, significant deficiencies, or compliance findings. The district's SPLOST (special-purpose local-option sales tax) performance audit also received a finding of compliance "in all material respects" with the Georgia Constitution and the Official Code of Georgia, according to the presentation.

Board discussion included confirmation that the preliminary budget does not include cuts to pay or furloughs and that step increases are included in the salaries line. The presenter said the budget remains preliminary while the district awaits final QBE (Quality Basic Education) calculations from the state and the county digest.

Next steps and public access: the district plans to present a tentative budget on May 13. The presenter said the full monthly financial update and the FY24 audit reports are posted with the meeting agenda on the district website and will be included in the district's next quarterly report in May.

The presentation and figures were given during the superintendent's budget segment of the April 1 meeting and were introduced as part of the board's finance update.