Pickens County board hears FY27 budget outlook, Senate Bill 33 impact and grant uncertainty

Amy Smith, chief financial officer for the Pickens County school system, told the board at its June 8 work session that the district is preparing a conservative FY27 budget in the face of legislative changes and late federal-grant notices.

"This bill is effective July 1st, 2026," Smith said of Senate Bill 33, which she described as the product of changes to an earlier proposal tied to House Bill 581. Smith said the measure requires school districts to operate under a digest-growth cap — an annual inflation index or 3%, whichever is greater — and that the principal local relief measures (including a county-level local-option sales tax) do not directly help the school system this year.

Why it matters: Smith said the final form of the law has a smaller negative effect than earlier versions had threatened, but key mechanics — new homestead-exemption calculations and local fair-share rules — could affect revenue timing. She told the board some relief tied to local fair-share calculations will not be effective until fiscal 2029, so near-term planning must remain cautious.

Smith also reviewed the district’s special-revenue accounts. Federal grants, she said, continue to arrive late from the state; the district applies through the state consolidated application and must satisfy program-approval steps before funds can be used. "We don't have the first actual number for any of these grants," she said, and the district has therefore adopted conservative estimates so staff can begin payroll and operations July 1 if approvals are delayed.

On reserves, Smith said a code change cited in the meeting increased the allowable fund-balance limit from 15% to 25% of prior-year budgeted expenditures. When a board member asked for dollar equivalence, Smith provided rough figures based on prior-year numbers: the 15% figure would be about $9.5 million; 25% would be just under $15.9 million.

Capital and projects: Smith presented a cautious capital-outlay plan that assumes roughly $17.1 million in FY27 capital spending supported in part by an anticipated $2.7 million from state GSFIC funds. Projects listed included completion of PHS renovation phases, Hill City Elementary renovation, Pickens Junior High School addition and partial renovation, and work at Harmony Elementary, some of which will cross fiscal years.

School nutrition and personnel items: The board was told the nutrition program is largely self-sufficient but will request to use about $134,000 of its fund balance to cover a shortfall; Nutrition Director Beth will present a proposed 25-cent increase for lunch and a 5-cent increase for breakfast at the Thursday meeting. Smith also noted a proposal to add a part-time federal program director funded by Title I (necessitating a fund-400 consolidation) and a 15% salary increase for three University of Georgia County Extension positions, which she has included in the draft budget.

Revenue assumptions and timing: Smith said the district lost 244 FTEs in the most recent October-to-October count, reducing QBE-related revenue by about $954,000. She also described shifting state health-contribution proposals that she has currently modeled as $50 per employee per month pending a Department of Community Health decision expected June 11; those state actions could require budget adjustments.

"We have to be conservative," Smith said, describing choices to understate revenue rather than risk overestimating collections. She said property-tax (millage) and digest figures remain subject to final state and county assessments and that the board will be asked to approve tentative figures and, if necessary, amend them when official numbers arrive.

Next steps: Smith asked for board direction on advertising and scheduling the two required public hearings on the tentative budget; she proposed June 15 at 6 p.m. for the first hearing and said legal-ad deadlines require quick confirmation. The board also previewed the Thursday action agenda, which will include tentative budget approval, salary schedules and several construction-related approvals.

Ending: The workshop closed with the board preparing for a Thursday vote and with staff saying they will return with any required amendments once final grant and digest numbers are available.