Catoosa County school leaders urge action now to replace $2.5–$3M revenue loss from state exemptions

At a July 16 public hearing, Catoosa County Public Schools Superintendent Nicks told the board the district must act now to replace an estimated $2.5–$3 million in revenue that will be lost next year because of a newly approved senior property tax exemption and other state‑directed costs.

Nicks told the board the hearing focused on the local budget — the portion that pays custodial, clerical, bus drivers and other non‑state‑certified employees — and warned that state funding increases are often restricted and therefore do not free up local dollars. "We don't get sent a lot of undesignated funds," Nicks said, adding that many state increases arrive as categorical grants already directed to specific uses.

The superintendent listed three major budget pressures: the local impact of a senior tax exemption (he cited an estimated $2.5 million to $3 million loss), costs from a state‑mandated private audit (Nicks referenced an estimated $500,000 over five years and about $200,000 in the first year), and state‑announced employee bonuses that the district had to top up so all employees would be treated equally. "The school system can't wait. We have to do what's right for kids," Nicks said.

Director Carter followed with details from the tentative FY27 budget. Carter said projected general fund revenue is "slightly over $149,000,000," with state funding comprising roughly 60.27% and local funding 39.73%. Local revenue projections are based on a 15.75 millage rate, a 98% collection rate and a 2.5% county collection fee, Carter said. He told the board the district shifted roughly $1,900,000 in FY26 by moving allowable expenses to other funding sources and cited prior operational savings from transitioning classified groups to an outside vendor, which he estimated conserved about $820,000.

Carter outlined planned staffing changes for FY27, including adding seven kindergarten/first‑grade teachers and nine special education teachers while eliminating nine secondary teachers and reducing paraprofessionals by a net of 22. He also noted that 89.4% of budgeted expenses are salaries and benefits and that employee health insurance costs rose to $1,935 per month (about $23,220 annually) per employee.

Carter warned that waiting to replace the revenue loss would push replacement dollars out to January 2028 and could require the board to use a tax anticipation note in fall 2027. Both speakers urged the board to consider a measured millage adjustment now rather than delay and risk legally untenable deficits; Nicks cited a law requiring school systems to adopt balanced budgets.

The board did not take a vote on the millage at the July 16 hearing. The superintendent and director said the board's final vote to adopt the millage rate is scheduled for July 16 at 6 p.m., the third required hearing in the process.