Board approves one-time transfer from debt service to offset new homestead credit shortfall

The Decatur County Community Schools Board of Education voted unanimously to transfer funds from its debt service fund to operations to offset revenue lost after a newly enacted supplemental homestead credit, board members said.

Miss Lee, a district staff member who addressed the board, told members the Department of Local Government Finance is allowing a one-time transfer because the district had already finalized its 2026 budget before the credit took effect. "They are allowing us one time," Miss Lee said, explaining the transfer would help make up the shortfall the district will experience this year. The board approved the transfer by voice vote, 7-0.

The board did not state the dollar amount of the transfer during the meeting. Miss Lee said the allowance is a one-time accommodation tied to the timing of the credit and that the district will not treat the change as a recurring remedy. The Department of Local Government Finance was identified in the meeting as the permitting authority for this transfer.

The vote came amid routine business; following the transfer approval the board also approved the district's budget calendar for the coming months. The district will review the 2027 budget at its Aug. 12 meeting, hold the budget hearing Aug. 26 and consider budget adoption Sept. 9.

The board's action is procedural authorization of the transfer; the staff presentation noted the state permission and that the transfer is intended to address this year's shortfall. The board recorded the motion as approved, 7-0, and did not request additional follow-up during the meeting.