At a work session on Thursday, April 17, the Habersham County Board of Education reviewed early projections for its 2026 budget, which is expected to grow due to rising expenses—particularly health insurance costs.
Chief Financial Officer Staci Newsome reported a significant increase in employer-paid health insurance for both certified and classified staff. Rates for certified employees—those with state-issued licenses—will rise from $1,760 to $1,885 per person per month. Rates for a majority of certified staff is paid by the state, but rates for classified staff are not.
For classified staff, the increase is even more impactful, expected to jump from $1,580 to $1,885, with no state funding to offset the additional cost. The total increase could cost the district an estimated $1.7 million.
“That is an increase of $305 per person per month,” Newsome said. “There is no state funding for this, so this is a straight local cost…that is completely out of our control – this is legislated by the state of Georgia and is in the law.”
Last year’s approved budget was $126.8 million, a 3.18% increase from 2024. The final 2026 budget figure is still pending as state and local revenues are calculated. Newsome estimates the upcoming budget will cover over 7,000 students and more than 1,100 staff across 14 schools and 28 departments.
A key unknown is the amount of Quality Basic Education (QBE) funding from the state, which is based on enrollment. Habersham’s enrollment is projected to increase from 7,190 to 7,361 students, likely boosting QBE funding. In 2025, the district received $62 million from QBE.
Newsome noted the budget covers five major categories: general fund, debt service, capital projects, special revenue, and school nutrition. While no cost-of-living raises are planned for employees’ salaries, increases for staff based on experience are possible.
During the public hearing, resident Dale Green urged the board to explore potential budget cuts.
“There is a wealth of ideas from the public of stuff we can do,” he said. “…please watch (for) what else we can do.”
Board Member Doug Westmoreland, acting chair in Chairman Russ Nelson’s absence, said a strong school system is vital for a community to flourish and cited rising costs as a major factor officials must consider every year. And when business looks to locate in a community, he remarked, the two top considerations are a strong hospital and school system.
“I appreciate the comments from (Green),” Westmoreland said. “We have an operational budget, and if we’re going to continue, we’ve got to maintain that budget. Everything goes up every year – the cost of living, everything. The biggest chunk is that insurance. The state has put that on every school system, and we’ve got to take care of that…I think we’re being good stewards of the money. I really do feel like we are.”
Habersham County School System has around $12 million in reserve funds, according to Newsome.
“To make sure everybody understands, $12 million isn’t a lot,” she said. “It costs almost $7 million to run for one month.”
Habersham County’s Board of Education will hold two more public hearings before final approval on June 16.
