Board approves FY26 general fund budget; finance report flags revenue shortfalls and capital transfer

The Oconee County School Board approved the FY26 general fund budget on third and final reading Monday, June 2, 2025, with a recorded vote of 5-0.

Board members voted to adopt the budget after hearing the district's monthly financial report for May. Jay Schickling, who presented the report, said the district is "getting to the point in the year now where the variance column on the far right, is actually something to monitor or has some impact." He noted both revenue and expenditure items that will affect year-end balances.

The budget matters because it sets the district's planned spending levels and transfers for the coming fiscal year, including capital projects. Schickling pointed to a transfer to the capital fund as the single largest line-item change in May: "If you look at the very bottom of that expenditure report and the transfers, you'll see 1,400,000 there as a transfer to capital, which is an expenditure out of the budget. That reflects the board's approval to transfer $1,200,000 as well as moving the revenue from the sale of Seneca Middle School into the capital fund where it can be utilized for capital purposes."

In his presentation, Schickling highlighted revenue items to watch: local tax revenue remained about $2,000,000 short of budgeted expectations with two months of collections remaining; roughly $2,800,000 in formula aid remained uncollected at the time of the report; and the district had a Tier 3 monthly payment of about $1,600,000 with two payments still expected (June and a 13th-month payment). He also reported a $571,000 payment from EIA, leaving roughly $564,000 remaining to be collected from that source. For May, Schickling said total revenues were "close to $8,000,000 for the month of May."

On expenditures, Schickling described overspending in purchased services at some levels driven by the use of Kelly Services to cover long-term vacancies while salary lines remained under budget. He named roofing projects, food service management, and intercom upgrades as among the largest nonpayroll disbursements and capital work in progress.

Board discussion also touched on the county council's planned cap on millage. As presented to the board, staff recommended leaving the district's requested millage unchanged and allowing any county-imposed cap to reduce realized revenue, rather than proactively reducing the budget request and appropriating more fund balance. That approach will let the district show the actual revenue outcome on its financial statements and inform planning for next year.

Action taken: a motion to approve the third-reading, final FY26 general fund budget was made and seconded; the board voted in favor, 5-0. No amendments were adopted at the June vote.

The district will continue to monitor tax collections and formula aid receipts and report updates to the board. Staff also indicated capital funds now include proceeds from the sale of Seneca Middle School and the previously approved $1.2 million transfer, reflected together as the $1.4 million May transfer to capital.