School board approves FY27 tentative budget and 20.30 mill rate as ECLC financing is deferred

The City Schools of Decatur Board of Education approved a tentative fiscal year 2027 budget and set a tentative maintenance and operations millage rate of 20.30 mills on May 12, while agreeing to move discussion of how to finance the proposed Early Childhood Learning Center (ECLC) to a future work session.

The board approved the FY27 tentative general‑fund budget, which projects roughly $113.3 million in revenues and $120.1 million in expenditures, leaving a planned draw on reserves. Chief Financial Officer Lonita Broom told the board the package reflects updated state revenue estimates, preliminary county digest growth and the removal of one‑time grants; she said the draft maintains the board’s fund‑balance policy range even after accounting for a projected deficit that will be covered by the beginning fund balance.

Broom described the draft as built on conservative assumptions and warned that the county’s early tax digest and pending state legislation (Senate Bill 33) create uncertainty. "These projections will be refined as we receive final digest numbers," she said, outlining that revenue increases in the draft stem largely from higher assessed values rather than rate changes.

Board members pressed staff for clarity on key assumptions, especially tuition and local tax growth. Several members pointed to the new property‑tax law and asked staff to update the forecast when the county issues final digest figures. The budget passed in a recorded vote (tally reported by the board as three yes, one no, one abstention).

On a related motion, the board tentatively adopted a millage rate of 20.30 mills for maintenance and operations. The district said the rate itself is unchanged from recent years; the increase in county property values would raise tax collections even with a fixed rate. The millage adoption carried 4–1 in the recorded roll call.

Earlier in the meeting, the board voted to defer the specific ECLC financing item to a future work session to allow deeper review of financing options and additional work on community engagement. Chair Carmen Soulton and other members clarified that the deferral did not remove the ECLC’s operating costs from the FY27 budget packet; instead, it paused final action on long‑term financing plans while the budget process continued.

Public commenters urged the board to pause or rethink the ECLC project. Multiple residents said they supported expanded early‑childhood services in principle but were concerned about the proposed capital scope, the timing of a large financing decision as the state’s tax rules change, and whether renovations of existing space could meet need at lower cost. Others asked the board to prioritize classroom materials and teacher compensation before committing to a new building. The board’s action sends the tentative budget and millage forward to two public hearings on May 19 and May 27, and a scheduled final budget adoption vote on June 2.

What’s next: The board’s fiscal calendar calls for two public budget hearings (May 19 and May 27) before the June 2 final vote on the FY27 budget, and three public hearings on the millage (including a final adoption hearing in June). Staff said updated tax digest numbers and any changes to state law will be folded into the final budget materials.