Clayton County board hears FY27 budget proposal that trims $9.7M and funds midyear pay steps

Miss Divons, the district budget presenter, told the board at a June 15 public hearing that the proposed FY27 spending plan totals $1.287 billion, including a $750.5 million general fund, and that staff had identified roughly $9.7 million in cost reductions to balance the budget.

"We've identified about $9.7 million in cost reductions," Miss Divons said, listing savings from vacant positions, reduced administrative supplements, contracted services and operating efficiencies. She attributed the need for cuts to enrollment declines, rising mandatory employee benefit costs, inflation and federal funding uncertainty, and noted a recent state law that limits assessed-value growth to about 3 percent.

The presenter described the savings breakdown as approximately $4.5 million from vacant positions, about $3 million from trimmed administrative supplements, $1.2 million from contracted services and roughly $1 million in operating efficiencies. Adjustments to the general fund included a net $6.8 million decrease in some expenditures after final state health insurance premiums were lower than anticipated, she said. The district said it is not tapping fund balance; projected ending reserves for the coming year were estimated at $130.4 million under current assumptions.

Staff compensation was a central element of the plan: the budget would generate $4.9 million to pay eligible employees a midyear step increase effective Jan. 1, 2027. Miss Divons said employees at the top of their pay grade who are ineligible for step movement would receive a 1.5 percent increase instead.

The presentation included how the district allocates funds across functions: about 85 percent of the general fund is personnel services; capital projects account for $479.2 million (35 percent of the total); debt service is $66.9 million (about 5 percent); and the enterprise fund was reduced by roughly $1 million to about $50–51 million.

Board members asked detailed follow-up questions during the public hearing. One member asked whether the $125,000 added for Rosen would fund an administrative assistant; staff confirmed the position is intended to manage the community-facing building and is part of the engagement team. Members also pressed staff on how the midyear step interacts with state teacher pay scales; district staff explained that step movement occurs according to the existing scale and that the 1.5 percent adjustment applies to employees ineligible for steps, and that the five-year projections incorporate those increases.

On staffing, board members asked how the realignment addresses more than 500 current vacancies. Miss Divons said the district did not eliminate all vacancies; only those positions department leaders agreed they could do without were removed from the budget, while other vacancies remain funded so roles can be filled.

Members also asked about expiring grants tied to electric-bus purchases; staff said federally or state-funded EV bus grants that expire mean the district does not plan new purchases next year and must spend remaining federal funds first.

Questions about charter and auxiliary programs surfaced: staff confirmed recalculations to charter school funding (QBE adjustments) and said an allocation was added for textbooks and consumables. For the new early learning center, staff said some kindergarten and pre-K students are included in the enrollment projections and that roughly 42 positions were budgeted for pre-K, kindergarten and instructional coaches.

Miss Divons closed by reminding the board that this was the second required public hearing. The board scheduled a special called meeting at 6:00 p.m. to adopt the final budget and set the mill rate; a separate mill-rate public hearing is expected in August. With no members of the public signed up to comment, the hearing was adjourned at 5:59 p.m.

Next steps: the board will reconvene at the special called meeting to consider final adoption and the mill rate; members indicated they expect additional clarifying materials on step calculations and vacancy details ahead of that vote.