The Habersham County Board of Education (BOE) approved its projected FY 2025 total annual budget of $126,806,511 during their Monday school board meeting.
The total budget increased for FY 2025 by 3.18% or $3,912,674 compared to 2024.
The total budget is broken into 5 funds with their own revenues and expenditures. The largest fund is the General Fund with expenses for FY 2025 at $97,042,115.
The FY 2025 General Fund budget of $97,042,115, will see an increase of 9.39% or $8,328,863 over the FY 2024 budget. Of the $8.3 million increase, $7,980,261 are for employee raises and benefits.
Teachers will receive a $2,500 pay raise and classified employees will receive a 4.1% salary increase. Staff salary increases will be $2,116,070.
Health insurance benefits increased as well for the school district. For FY 2025, health insurance costs increased by $2,479,320 when compared to FY 2024.
Another increase in salaries for the FY 2025 General Fund budget will be the retention of 41 employees that were hired with federal funds. In 2020, school systems received the ESSER III ARP Federal Grant to hire employees to assist students that may have been impacted due to school closings during the pandemic. That grant will expire on September 30, 2024. The cost in retaining those employees will impact the general fund to the tune of $2,348,575.
The General Fund receives revenues from the state and federal government as well as property taxes, alcohol taxes, and Education Local Option Sales Tax. The BOE will use $2,842,037 in reserve funds to cover the shortfall in the General Fund.
Remaining Funds
The remaining funds that make up the total budget are Debt Service, Capital Projects, Special Revenue Fund, and the School Nutrition Program.
The Debt Service Fund will see expenses of $10,165,285. This fund pays down bond debt each year for capital projects throughout the school district. These expenses are paid for with Education Special Local Option Sales Tax (ESPLOST).
The Capital Projects Fund will see expenses of $6,521,811 for capital projects, such as school additions and renovations. This fund has a revenue balance of $12,900,000 and is funded with bonds the school district has received.
The Special Revenue Fund will see expenses for 2025 in the amount of $6,577,300. This fund receives revenue from the state and federal government as well as local taxes. The Special Revenue Fund pays for students’ instruction not covered in the General Fund.
The School Nutrition Program is primarily funded with federal dollars. The expense for 2025 will be $6,500,000.
Board member Joey Duncan asked Chief Financial Officer Staci Newsome to confirm his statement, “Over 100% of that budget increase is solely for student services and instruction.” Newsome confirmed that his statement was correct.
Board Chairman Doug Westmoreland added to the discussion, “It has been presented twice at our work session with no public input. The floor was open at both sessions for public input. Nobody was here to make any suggestions or input.”
The board approved the projected FY 2025 unanimously. Board member Russ Nelson was not in attendance.
The next step in the budget process will be advertising the FY 2025 in the legal organ. The Board of Education will formally adopt the budget at their June 17 meeting.
The school district operates 14 schools. It is made up of 28 departments and has 1,212 employees. The school district instructs 7,190 students.
