Cherokee County schools project FY27 shortfall after enrollment drop; board to hold April public hearings

The Cherokee County Board of Education received its first FY27 budget forecast at the December work session, where finance staff (introduced as Mr. Owen) described revenue, projected reductions and cost pressures that together leave the district with a preliminary gap to close.

Mr. Owen reported year‑to‑date revenue through Nov. 30 of about $276,000,000, with state funding of roughly $83,000,000 (about 30% of budgeted revenue) and local funds around $191,000,000 (about 59%). He said enrollment declines of about 1,000 full‑time‑equivalent students this year will reduce QBE state funding by roughly $88,100,000 and that the district is planning for a net reduction of about $6,300,000 in FY27 compared with the current fiscal year.

On expenditures, Mr. Owen said employer contributions to the Teachers Retirement System (TRS) are rising from 21.91% to 22.32% and that honoring the salary schedule and step increases will cost "just under $6,000,000." He said the district expects a modest 4% increase in the local tax digest, which staff estimate would generate about $10,900,000 in additional local revenue, but cautioned that most of that growth could be consumed by step increases. "It takes almost all 4% to cover just a step increase," he said in response to a board member's question.

Mr. Owen outlined the budget calendar: status reports in January and February; the budget book and public hearings in April (April 2 at 11:30 a.m.; April 16 at 11:30 a.m. and 6:30 p.m.); and a formal consideration of the superintendent's recommended budget at the April 23 board meeting. Board members were asked to submit budget priorities that were due at the meeting.

No budget was adopted at the work session; staff will return with adjustments and updates during the budget development process.