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Clayton County board hears FY27 budget preview showing roughly $23.5 million gap; leaders weigh cuts and use of reserves
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Summary
Finance staff told the Clayton County Public Schools board the proposed FY27 budget shows a $23.5 million shortfall and projected reserves falling to about 1.7 months if current assumptions hold. Board members discussed vacancies, consolidation, travel and vehicle use as potential savings while seeking a multi-year strategy and deeper committee review.
Ramona Bivens, the district's finance lead, told the Clayton County Public Schools board that a preliminary fiscal year 2027 budget shows a gap of about $23.5 million and projects total revenue of $713.6 million against $737.2 million in expenditures. "We are facing right now where we are at 23,500,000 gap," Bivens said during the presentation.
The presentation laid out revenue assumptions and pressures: a conservative 3% property-tax growth assumption (about $10 million), declining interest earnings because of later tax receipts, increases in state health insurance costs and a 0.41 percentage-point rise in the employer contribution to teacher retirement. Bivens said the district has used roughly $72 million of its fund balance over the last five years to balance budgets and that, under the current trajectory, the district could be down to a one-month operating reserve by 2029.
Board members pressed for both immediate and long-term remedies. "We've got to make some tough decisions," Interim Superintendent Doctor Hendricks said, urging the board to consider vacancies, facility consolidation and other right-sizing steps while promising transparency. He added the district's reorganization from eight to 13 divisions produced a net savings of $1.3 million that can be redirected to student programs.
Several board members proposed specific near-term cuts: reducing travel and meals, rethinking vehicle assignments and scrutinizing duplicate services and contracts. Board member DeMar Christmas recommended curbing discretionary vehicle use and said the optics are poor when leaders drive large vehicles while cuts are discussed.
Members also asked how the board can avoid recurring draws on fund balance. Bivens said staff is reviewing contracts and department line items and has already reduced some travel; she also provided ballpark costs for potential employee pay actions (a $1,000 one-time payment to full-time employees would cost roughly $7.4 million; a permanent step increase would cost more).
Several board members urged a standing finance committee to develop three- and five-year projections and to give the board time to dig into assumptions and audit findings. "This is a very healthy, timely conversation, but this is only the beginning," one board member said, asking for more detailed projections and tighter oversight.
Next steps: staff will continue contract reviews, return with consolidated savings proposals, and discuss long-term strategic options, with board members asking the superintendent and finance team to provide more detailed multi-year projections and options before formal budget adoption.
