Liberty County school board members are looking at a budget that calls for $158.6 million in spending — and $156.2 in revenue.
School board members may dip into the system’s undesignated, unreserved fund balance again to make up for the gap between spending and revenues.
For the current fiscal year, which ends June 30, the school system projected revenues of $154.5 million and expenditures of $157.5 million. The projected expenditures are an increase of less than 1% over the FY26 budget’s spending.
The system is getting less in state funding through the QBE, a cut of nearly $4.1 million. Its anticipated total from the state through the QBE is $93.1 million. The QBE funding for FY27 is based on a full-time equivalency of 10,149 students. Federal funds are expected to account for $8.1 million in revenue.
State funding will make up 62.1% of the school system’s revenue, with local sources accounting for 23.8% and 13.8% coming from the federal government.
School system chief financial officer Stephanie Clark said a good rule of thumb is to have three months of operating reserves in fund balance. The school system spends from $12 million to $15 million per month, so a prudent fund balance is about $45 million.
Governments and governing bodies typically set aside reserves like that to carry them through times when revenues, such as property taxes, are their lowest. Property tax bills generally out toward the end of the calendar year, and property taxes routinely are made in the first of the following year, so governing bodies such as the school board get very little in property tax proceeds in the summer and fall.
The system’s current unreserved fund balance is $46.7 million, and they are projected to have $44.3 million.
Of the nearly $158.6 million in planned spending, almost 56% — $88.1 million — will be directed toward instruction. Pupil services will cost about $13.2 million and maintenance and operations will cost $11.7 million.
The school board has cut its millage rate from 16.358 in 2020 to 14.114 in 2025. Even with the millage rate reductions, the system has taken in more in property tax revenue, as the net digest has grown 61% in the same span.
“If we were to go up on millages, it would, in my mind, be stupidity,” said board member Carol Guyett.
Guyett recalled when the system had to layoff paraprofessionals to make the budget work.
“Some had worked for the system for 20 years, and all of a sudden, they didn’t have a job,” she said.
While no layoffs or reductions in personnel are part of the budget, the proposed budget does not have raises or step increases within the salary scale.
Other than the state-mandated literacy coaches, there will be no new positions funded through the general fund for the coming year. Retention and attendance incentives also are not included, and there are no new or increased position supplements.
Also increasing is the system’s share of the teacher retirement system and health insurance costs.
“We have to really scrutinize our expenses,” Guyett said.
Clark said had the system gone with 2%pay raises and step increases, it would have added another $10 million to the budget’s bottom line.
“Every department made cuts where cuts could be made without getting rid of positions or furlough days,” she said.
The system had planned to put about $3 million in fund balance but that amount likely will get taken up through other expenses. Clark noted the system approved retention incentives midway through the year that had not been part of the original budget. The school system also has had to put more money into school nutrition and rising fuel costs also have siphoned away fund balance.
“We will more than likely go into fund balance for the entire $3 million,” Clark told board members. “I do anticipate us having to go into fund balance for that fund balance, and maybe more.”
Clark noted the system approved retention incentives midway through the year that had not been part of the original budget. The school system also has had to put more money into school nutrition and rising fuel costs also have siphoned away fund balance.
“We can’t keep going into it every year,” board member Dr. Marcus Scott said of the fund balance. “Othe rwi s e , we won’t have any money in it.” Scott added he could not support a budget that does not include teacher pay raises and step increases. Guyett said the board needs to do everything it can not to overspend and it shouldn’t fund continuing expenses with money that may not be there in the future.
“Eighty percent of our budget we don’t control,” she said. “But the things we do control we have to be very careful with and we have been extremely fortunate in Liberty County. I want to take care of the taxpayers. I want to take care of the homeowners. And I want to take care of our teachers.”
C lark also reiterated that education special purpose local option sales tax, or ESPLOST, funds can be spent on items such as buildings and technology but not on salaries and other operating expenses. Those items to be funded through ESPLOST are approved by voters and the projects cannot be changed after they voters approve them.
On tap for ESPLOST spending are an upgraded HVAC system at Bradwell Institute, a second phase of interior renovations at BI and a roofing upgrade at Liberty Elementary School, for a total of $7.2 million.
The system also is setting aside $2.75 million of ESPLOST for a new school, covering the costs of land acquisition and due diligence and preliminary design of a new school.
The second public hearing on the budget is set for today at 5 p.m., with adoption of a tentative budget set for 5:30 p.m.
The final budget is set for approval on June 23.