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Cherokee County school budget workshop lays out 2–3% raise options, warns raises require fund balance or millage
Summary
At a budget workshop, finance staff recommended a 3% cost-of-living increase but said the district would need roughly $1.59 million from fund balance (or additional millage) to cover a 3% raise; the board discussed hybrid options to limit immediate tax increases and to scale out reliance on fund balance after reassessment.
At a budget workshop, district finance staff presented the Cherokee County School Board with options for staff raises and the trade-offs between using fund balance and levying additional mills.
"We are recommending either a two or a three percent. The district would like to recommend a three percent raise," said Mr. Pettit, the finance presenter. He told the board the budget presented is not balanced and that the district would need about $1.59 million to cover a 3% pay increase with no millage change.
The presentation included revenue and fund-balance scenarios. Mr. Pettit said initial projections place the district's fund balance near $26.2 million at June 30, and the board policy target is to maintain at least 60 days of operating reserve (with a 90-day goal). He cautioned that recurring reliance on fund balance for operating raises is not sustainable without a plan to scale out the supplement.
To limit tapping fund balance, staff offered a hybrid approach of partially levying millage and using fund balance for the remainder. Mr. Pettit provided examples: approximately 2.2 mills would cover half the deficit in one scenario, while about 4.6 mills would cover the full cost of a 3% raise if the board chose that path.
Board members asked for follow-up details on the calculations and the timing impact of the 2027 property-tax reassessment, which could alter millage value. Mr. Pettit noted the district used a conservative 4% growth assumption in its mill-value methodology and emphasized the reassessment makes next year’s picture uncertain.
The presentation emphasized trade-offs: a 1% raise would keep the budget balanced without additional measures, whereas 2% or 3% raises would require either fund-balance supplementation, new millage, or a hybrid approach.
Next steps: staff will provide detailed spreadsheets and supplement schedules ahead of the board's first reading on May 11 and the public final reading expected in June.
