The Habersham County Board of Education received news during their work session last week that they may see a $5.6 million increase in expenses next school year.
The Habersham County School District Finance Director Staci Newsome gave a budget update during the work session announcing the increases. She stated, “We don’t have anything official but we’re going to go through what we do know at this point.”
Grant funding ends
Newsome explained to the board members that a revenue shortfall will result in the conclusion of the ESSR III ARP Federal Grant. The Elementary & Secondary School Emergency Relief fund through the American Rescue Plan Act was implemented in 2021 and will discontinue on September 30, 2024. The school district received $11,489,367 over the last three school years.
The loss of the federal grant will move 35 paid positions to the general fund resulting in an expense to the budget of $2,348,575 that the federal funds covered over the last three years.
Newsome informed the board members that the district will see other increases to expenses for the upcoming school year.
Health insurance increases
Health insurance expenditures will increase by $2.494,440 for the upcoming year. Newsome explained to the board members that for certified employees that increase will be $180 per month per employee.
The significant increase was for classified employees. Health insurance increased for those employees by $565 per month per employee. She did state that the number may decrease as state legislators and the Governor’s Office review the proposal at the state level.
Pay increases
The state included in the budget for the school year 2024-2025 a pay increase of $2,500 for certified teachers and staff. The cost to the school district to implement the state mandated raises will be $283,933.
The state also included in the budget a 4.1% pay increase for classified employees, such as bus drivers, nurses, and school nutrition staff. The cost to the school district to implement the state mandated raises will be $496,984.
Newsome reminded the board members that the school district would get better numbers over the coming days as the state reviews their budget and when the Governor signs it.
She gave the board members some facts about the school district during the work session. The school district has 7,190 students and 1,230 staff members. Newsome informed the board members that 91% of the budget is for providing salaries and benefits to staff. The other 9% is for operations.
After the presentation, Habersham County School Board Chairman Doug Westmoreland opened the floor for a public hearing to receive comments about the budget presentation. No one from the public spoke during the public hearing.
The school district does not know at this time how much revenue they will receive from the state until the Governor signs the budget. It also has not received the county’s tax digest to determine how much property tax will be needed to cover new expenses.
Newsome states that the Community Eligibility Provision (CEP) free lunch program, which will be implemented next school year, will not impact the general fund.
The next public hearing for the school district’s budget will be during the Habersham County Board of Education’s work session at 4:30 p.m. on Thursday, May 9. The meeting will be held at 144 Holcomb Street in Clarkesville.
