Effingham County school leaders recommend 18.45‑mill rate to close budget gap; no formal millage vote at meeting

Finance director Lauren Kane recommended the Effingham County school district set its fiscal‑year 2026 millage rate at 18.45 mills, saying rising operating and employee benefit costs have produced a budget shortfall the district cannot close under the rollback rate.

Kane told the school board the district’s digest value is $4,142,000,000 and presented two scenarios: a rollback rate of 16.546 mills that would yield roughly $68,545,000 in property tax revenue (about $66,831,000 net after collection fees), and the proposed 18.45 mills that would yield roughly $76,433,000 (about $74,522,000 net). Kane said the rollback scenario would create an estimated $7,372,000 deficit largely driven by increases in employee health insurance and Teachers Retirement System (TRS) contributions that are set by the state.

“Ultimately, today, we will be discussing increasing our millage rate to 18.45 mills,” Kane said. She explained the district taxes 40% of assessed fair market value to derive the digest and that the district’s budget is heavily weighted to people: roughly 88% of spending goes to salaries and benefits. Kane cited district staffing figures (about 940 noncertified employees, with 512 participating in the state health plan) and presented monthly and annual estimates of local health‑benefit costs.

Dr. Ford reiterated that the state sets employer premiums for the state health plan and said the district receives no state funding specifically for those insurance costs. “The state gives the district $0 for health insurance,” Dr. Ford said, emphasizing that payroll and benefits consume most of the district’s budget and that staffing losses (for example, bus drivers or kitchen staff not reporting) would impair operations.

Kane and Dr. Ford said the proposed revenue from 18.45 mills would bring the budget close to balance after expense reductions and internal transfers; the board did not take a formal vote on the millage rate during this meeting. Dr. Ford characterized the recommendation as necessary to preserve instructional budgets and maintain small class sizes, which he linked to the district’s retention numbers and student outcomes cited in the presentation.

Public comment focused on payments in lieu of taxes (PILOTs). Resident Robert Mowers said his home’s assessed value rose about $300,000 in two years and asked why some businesses (notably warehouses) appear to avoid full property tax through PILOT agreements. Kane and Dr. Ford said the Industrial Development Authority governs such agreements; Dr. Ford said the district currently receives approximately $2.4 million in PILOT payments but estimated that, if those companies were on the full digest, it would increase district revenue by roughly $6.1 million.

Kane also explained per‑student revenue figures from the Georgia Department of Education (FY2024): about $16,000 per student, composed of roughly $8,800 state, $6,000 local (property taxes), and $1,200 federal. She provided millage‑impact examples for homeowners—e.g., a $350,000 fair‑market‑value home would see an annual increase of about $273 under the recommended rate (approximately $22.75 per month).

Votes at a glance: the board moved, seconded and approved the meeting agenda with all in favor and none opposed. The board did not vote to set or adopt the proposed millage at this meeting; staff presented the recommendation and answered questions from the public.

The district offered to provide attendees with the full presentation materials and to email a link; Kane said the slides and board agenda are posted at effinghamschools.com and Dr. Ford offered to provide a list of PILOT agreements on request. The meeting concluded with the chair adjourning after public comment.