Cherokee County School District outlines FY26 budget, cites $14 million gap from senior exemption

Ken Owens, chief financial officer for the Cherokee County School District, presented the district's proposed FY26 budget to the Cherokee County Board of Commissioners during the Aug. 5 meeting, detailing spending priorities, revenue sources and the district's current millage rate.

Owens told commissioners the district faces an estimated revenue gap of about $14 million tied to an expanded senior exemption the school board supported. To address the shortfall, district leaders enacted a package of reductions and reallocations: central-office operational cuts of at least 3% (about $2.4 million); reallocation of approximately $1.4 million from central-office-held funds back to schools; and a realignment of roughly $9.1 million from the general operating budget to other eligible sources including grants and SPLOST.

Owens summarized the district's spending priorities for FY26: invest resources "as close to students as possible," reduce class sizes in grades four and five (adding 20 teachers), expand school psychologists by two positions, invest $8.3 million in K'12 English-language-arts and mathematics instructional resources (print and digital), and increase school-based budgets for heavy consumable use in fine arts, science and STEM by about $1.4 million.

Instructional staff compensation

The district also approved pay adjustments this year: a 3% increase plus step (longevity) adjustments for teachers that Owens estimated at about $11.2 million, and a 3% increase for support staff. Central-office administrative staff received step increases only, with no cost-of-living increase. Owens said the employer share of state health plan premiums was fully funded in the budget.

Budget scale and funding mix

Owens presented the district's topline figures: total expenditures of approximately $843 million with a general fund of roughly $603 million. Capital outlay funded through SPLOST was about $59 million this year, with capital projects including new school construction and additions at several high schools. Federal, state and competitive grants totaled about $19 million, including federal Title I and IDEA special-education funds.

Owens emphasized the district's effort to keep the overall millage rate low; he said 17.95 mills is the lowest millage rate the district has had in more than 30 years and that the board has reduced the millage rate by 1.5 mills over the past three years. He also noted past early payoff of 2012 and 2014 bonds saved taxpayers roughly $11 million in interest avoidance.

Audience questions and materials

Commissioners asked for clarification on QBE (Quality Basic Education) state funding and how local mills interact with state equalization (what Owens described as an "equalization grant" or "Robin Hood" effect). Owens explained the QBE formula and that local 5 mills are ceded into the state funding formula; Cherokee County, he said, contributes local revenue and does not receive equalization assistance the way some other districts do.

Owens told commissioners the district's budget documents and the most recent annual comprehensive financial report are available on the district's public website and offered to answer constituent questions by directing them to those materials.

Why it matters

The presentation provides county leaders and residents with the district's fiscal picture ahead of the formal millage-setting process and highlights how policy choices such as exemptions affect operating revenue and program priorities. The board adopted the school district's requested millage figures later in the meeting as part of the county's rate-setting vote.