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Superintendent outlines rising insurance costs, TAN borrowing and ESPLOST as district manages a tight budget
Summary
Catoosa County Public Schools leaders told staff the state employee-health contribution has grown sharply and described use of tax anticipation notes, ESSER funds and ESPLOST (local sales tax) as tools to balance budgets and maintain operations without large property-tax increases.
CATOOSA COUNTY, Ga. — District leaders told staff that rising state-mandated employee health costs and the end of federal COVID-era funds are squeezing Catoosa County Public Schools’ budget, and said the district is using a mix of tax anticipation notes and capital sales-tax revenue to bridge shortfalls.
Speaking to staff, the superintendent described a multi-year rise in health-insurance costs that the district must pay for employees enrolled in the state plan. “Four years ago, it was [a smaller amount] per month per employee. Now the folks under the Gold Dome have notified us that on July 1 it’s gonna go up. ... It’s a little over $6,000,000 more a year that we’ve got to come up with,” the superintendent said, adding that some figures discussed were state-plan totals rather than a per-employee payroll deduction.
The superintendent warned that most classified staff salaries are funded locally, which makes rising local costs difficult to absorb. He said the district has a plan to balance the budget that includes increasing revenue and reducing expenses where possible.
To address seasonal shortfalls in the school year, district finance staff used a tax anticipation note (TAN) during fall 2024 to bridge cash timing differences driven by the state’s quarterly funding and local-property-tax collection schedule. “Many districts use them every year ... it bridges funding gaps,” the superintendent said.
Officials also described one-time federal Elementary and Secondary School Emergency Relief (ESSER) funds that have expired and a capital sales-tax program (referred to in the presentation as the district’s local capital sales-tax) that pays for construction, roofs and other large maintenance projects but cannot be used for payroll. The superintendent said the capital sales-tax frees general-fund dollars to pay staff and day-to-day operations.
The district also described administrative steps—coding and scheduling changes tied to the state QBE formula and audits by the state Department of Audits and Accounts—to ensure the district receives formula funding it is entitled to.
District leaders emphasized that most of every dollar goes to payroll—about 90%—and that reducing general-fund expenses often requires personnel changes. They presented a mix of revenue strategies and cost controls and said they are pursuing both rather than across-the-board cuts.
The district did not announce any immediate layoffs or salary changes during the meeting, and officials said details of budget actions will be discussed in public board settings and monthly financial reports that are published online.
