Barrow County board approves tentative FY2027 budget with $11 million planned draw from reserves

The Barrow County Board of Education voted April 28 to approve a tentative FY2027 general fund budget that projects $235,877,782 in expenditures and $224,870,091 in revenues, leaving an $11 million shortfall that staff said will be covered from the district's unassigned fund balance.

CFO Ms. Houston told the board the district expects an unassigned fund balance of about $54.7 million at year end, roughly 23 percent of next year's proposed expenditures, and that the tentative budget reflects state and local revenue assumptions and several legislative cost drivers. "This results in an $11 million deficit, which will be covered using the unassigned fund balance," she said.

The tentative budget packages several cost increases and savings. Major cost drivers cited during the presentation included rising health-insurance premiums (the presentation listed an annual employer cost per employee of $23,220), an increase in the Teacher Retirement System contribution (reported at 22.32 percent of salary), and new or expanded state mandates such as literacy-coach funding for elementary schools. Staff also described $12.4 million in internal reductions and position changes, including the removal of approximately 67.9 positions through attrition and departmental cuts, producing about $5.6 million in savings cited elsewhere in the packet.

Board members asked for clarity on the timing and public accessibility of the strategic scorecard and the plan's performance metrics. Ms. Houston and staff said the district will finalize quantifiable performance targets as state assessment and other baseline data arrive over the summer and will publish a balanced scorecard tied to the strategic plan.

The board moved and seconded the motion to approve the tentative budget; following discussion the chair recorded a unanimous voice vote. Ms. Lord made the motion and Mr. Callaway seconded; "All right. Motion carries," the chair said on the record.

Next steps include public hearings on the budget and millage rate in June and a final budget vote planned for June 23, with millage-rate action scheduled for early July. The presentation and accompanying materials show planned use of reserve balances to manage cash-flow timing and one-time costs, and staff said they will update the board as state or legislative developments alter projections.