APS presents balanced FY27 budget proposal with staff pay increases and $10M tax relief

Atlanta Public Schools administrators presented a FY27 budget proposal on May 4 that they described as balanced, lean and focused on targeted investments tied to the district’s strategic plan.

"This budget in reality is a balanced budget — first balanced budget since FY23 without the usage of fund balance," Dr. Brian Johnson told the board. Dr. Bracken, presenting the financials, reiterated that the FY27 plan assumes no fund‑balance drawdown, a proposed millage rollback from 20.5 to 20.3 mills, and modest local revenue growth alongside some state increases.

Why it matters: the FY27 proposal adds recurring investments while attempting to preserve reserves. Board members sought clarity on long‑term sustainability, the commercial tax digest, and steps to reach larger multi‑year goals the administration estimates at about $60 million.

Key budget points presented - Balanced budget: APS plans FY27 with no fund balance usage and an estimated starting fund balance of ~11.5% of approved expenditures (above the 7.5% floor but below the 15% goal). - Tax relief: administration proposed a rollback from 20.5 mills to 20.3 mills, estimating about $10 million in property tax relief for homeowners. - Major investments: about $37 million over five years for literacy and curriculum (math/science), a nearly $10 million increase for paraprofessionals and exceptional‑education supports, and roughly $19 million proposed for compensation increases (roughly a 2.5% average pay increase for employees this year, in addition to prior one‑time stipends). - Multi‑year needs: administration identified approximately $60 million in additional resources needed across multiple years to expand pre‑K, community hubs and the accelerated literacy model and to reach compensation goals.

Revenue and risk Dr. Bracken said local revenue growth is expected to be modest (about 2%), with state support picking up particular line items (for example, an estimated $3 million for literacy coaches). He warned that commercial digest outcomes from the Fulton County assessor could create downside risk and said APS is not assuming commercial growth in its baseline.

Board questions and follow-up Board members pressed for details about sustainability after a multi‑year deficit was shown in prior planning, how much of the millage is effectively dedicated to debt or TADs (about 1.6 mills not collectible for operations), and whether the district will need to return with adjustments if the commercial digest performs below expectations. Staff scheduled virtual budget engagement sessions (May 5 and May 12) and said final budget adoption is planned for June 1, 2026.

Actions noted Administration said it will present one budget adjustment for approval that evening: a $40,000 state grant to offset IB exam fees (revenue and expenditures to be added to the general fund).

Next steps The board was asked to review the proposal and participate in the upcoming community engagement meetings; administration will return for final adoption on June 1 and will monitor the Fulton County and DeKalb digests for updated revenue projections.

Sources: presentations and Q&A by Dr. Brian Johnson and Dr. Bracken to the Atlanta Public Schools Board, May 4, 2026.