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Catoosa County schools pin $3.5M FY27 shortfall on senior tax exemption, propose modest millage increase
Summary
Superintendent Nicks and finance director Austin Carter told the board a new local senior tax exemption, a mandated outside audit and state/local cost shifts create a roughly $3.5 million hole in the FY27 local budget; the district proposed modest millage and program cuts while residents urged protection for extracurriculars. Consent agenda items, including East Bloss bids, were approved unanimously.
Superintendent Nicks told the Catoosa County Board of Education on July 6 that the district faces roughly a $3.5 million shortfall in its local FY27 budget tied to three recent developments: a county senior tax exemption estimated to cost $2.5–$3.0 million, a legislatively mandated third‑party five‑year audit the district must pay (about $500,000), and a locally funded $2,000 employee bonus that the board covered for workers not included in the state bonus (about $800,000). The hearing was the first of three required taxpayer bill‑of‑rights hearings on the proposed millage.
The finance presentation from Austin Carter, the district’s finance director, said projected general‑fund revenue for FY27 is slightly over $149 million based on a 15.75 millage rate, a 98% collection assumption and a county 2.5% collection fee. Carter reported the district’s revenue mix at about 60.27% state funding and 39.73% local funding and projected FY27 general‑fund expenses of $144,309,663. He said FY26 actions—shifting roughly $1.9 million to East Bloss funds and transitioning 88 positions to Kelly Education Services—have reduced district costs, saving about $820,000 in the first year of that change.
Nicks framed the local budget as the primary focus of the hearing, noting that local property taxes fund non‑certified staff such as custodians, clerical employees, bus drivers and paraprofessionals while state funding supports certified staff. He said the district has eliminated more than 100 positions over the past three years and that larger class sizes reflect those reductions. Nicks said he will recommend a modest millage‑rate increase at a later meeting while also pursuing about $500,000 in further cuts included in the tentative budget.
Public commenters emphasized the local consequences of staffing and program reductions. Ian McNees, a resident who identified himself during public comment, asked the board to protect extracurricular programs such as music, theater, athletics and robotics, arguing they drive student engagement and long‑term outcomes. “When budgets become tight, it’s tempting to view extracurricular programs as optional. They are essential investments into the children of Catoosa County,” McNees said. Matt Phillips, principal at Heritage High School, told the board the school has dropped from about 100 certified professionals three years ago to roughly 90.5 today and said fewer teachers make it harder to staff coaches, sponsors and other extracurricular leaders.
Margaret Spear, a resident and candidate for State House who addressed the board, blamed state action for the district’s funding pressure, saying HB 30 (a county‑specific exemption passed by local voters) shifted tax burden rather than reducing it and that a state‑mandated audit and new literacy‑coach requirements together left the district with additional local costs. “This wasn’t a tax cut. It was a shift in the tax burden,” she said, asking the board to avoid cutting programs that affect students.
Carter answered board questions about restricted funds, saying the debt‑service fund (projected revenue ~$17.2 million for FY27) must be used for bond payments and capital—that money cannot be used for salaries. He also confirmed his understanding that the county’s 2.5% administrative collection fee reflects the statutory baseline in Georgia code and would require local legislation to change.
The presentation also highlighted targeted staffing changes planned in the tentative budget: seven additional kindergarten/first‑grade teaching positions, nine special education teachers to meet legally required services, offset by the elimination of nine secondary teachers due to decreased enrollment and a net reduction of 22 paraprofessionals across the district. Carter said 89.4% of budgeted expenses are tied to salaries and benefits, and that child nutrition is projecting a $585,000 deficit to be covered by its designated reserves; the child nutrition program used about $1,000,000 of reserves this year to bridge shortfalls.
After public comment, the board moved to its regular agenda and approved an 11‑item consent agenda recommended by the superintendent, including the East Bloss bid award (JMB Services recommended for the Heritage High cheer facility), the May financial report, HR recommendations, FY27 SRO agreement, pay scales and other routine items. The motion carried unanimously.
The board closed the meeting after a brief safety and facilities update that reported compliance with HB 268 (wearable panic devices, direct 9‑1‑1 link and visitor‑management improvements) and a progress report on ESPLOST/East Bloss projects and reimbursements for upcoming roofing and renovation work.
The board scheduled the final millage adoption vote for July 16 at 6 p.m.; the FY27 process will include two additional required public hearings before that adoption vote.
