Rockdale County school board adopts FY26 budget as tax-digest delays raise short-term cash concerns

The Rockdale County Board of Education on Thursday voted to adopt the fiscal year 2026 final budget, a motion the board removed from the consent agenda to be considered separately and approved on a 6-0 vote.

Board member Justin Kenny said he took the item off the consent agenda because “this being a fundamental responsibility of the Board of Education to adopt a budget each fiscal year, it should be voted on separately.” The board then approved the superintendent’s recommendation to formally adopt the FY26 final budget as presented and tentatively adopted on May 15, 2025.

The discussion followed a monthly financial report for May that showed the district’s May revenues at $11,200,000 and year-to-date revenues of $208,800,000, representing 95.7% of the current budget. Expenditures for May were $19,300,000 and $199,700,000 year to date, representing 90% of the budget. The district reported encumbrances of $1,070,654 and a fund balance of $37,688,083.

Finance staff member Miss Smith told the board the county’s tax digest and rollback calculations are delayed because the vendor that supplies digest software is updating systems related to recent state changes. “We have not gotten our tax digest yet,” Miss Smith said, and she warned the schedule could shift depending on when the county tax commissioner receives vendor updates.

Board members asked whether the delay is likely to be unique to Rockdale County. Miss Smith said she did not believe the delay was unique and that the issue was related to implementation of a state law, referenced in the meeting as House Bill 581. She said some jurisdictions have received their digests and others have not.

Superintendent Chesser told the board staff scheduled a meeting with the county tax commissioner for the coming week to seek clearer dates. “We have a meeting scheduled next Tuesday in which we’re going to meet with the tax commissioner in hopes of getting some clear dates and when we can expect to get it,” Chesser said.

Board members also pressed the district on cash-management implications. In answering a board question, Miss Smith said the district will likely need a tax anticipation note this year if the digest and tax-timing remain delayed. “I did not bring up the fact that we definitely will need to get a TAN again this year. And that is, that remains to be seen right now. Legally, we have to pay off the TAN by Dec. 31,” Miss Smith said.

Officials described possible calendar scenarios: if the digest and rollback arrive by mid-July, staff said they would advertise and schedule millage hearings in late July and early August; if the digest does not arrive in time it could push the county’s digest submission to the state and delay tax bills, collections and the related revenues that the district expects to receive.

The board approved the budget 6-0. The agenda amendment to move the budget from the consent agenda to the discussion agenda was proposed by Kenny and the amended agenda was approved later in the meeting as part of agenda adoption.

Looking ahead, staff said they will report back after the meeting with the tax commissioner and will present any recommended steps to manage cash and borrowing options if delays continue.