NEWTON COUNTY – The finalized FY 2026 budget was presented and approved during the Newton County Board of Education's regular meeting on Tuesday.
This proposal followed three prior phases: Planning and initial development, submission of budgets by schools and departments and compilation and preliminary review.
The budget includes $265 million in total expenditures, reflecting a $16.9 million increase over FY 2025 amended budget. This rise is primarily attributed to two main factors: the implementation of the classification and compensation study and higher employer benefit costs, including increased health insurance premiums.
One of the board's top priorities is employer compensation and offering competitive pay, particularly following the implementation of the classification and compensation study. The primary objective is to retain qualified teachers.
“That’s the majority of what we see in the increase,” said Trey Bailey, District 1 representative. “It was a priority of this board to increase that pay as much as we could to be competitive and to retain the people that we do have.”
Another significant takeaway, highlighted by Chief Financial Officer Erica Robinson, was a reduction in state funding of approximately $2.2 million.
Although the state is set to provide increases totaling $4.5 million, these gains are offset by significant reductions in other key areas. Transportation funding is expected to decline by $361,000, and equalization funding will decrease by $4.4 million due to growth in the local tax digest. Additionally, the local five-mill share will rise by $2 million, further reducing the state's overall contribution.
“Together these reductions result in less state support at a time when costs continue to rise,” Robinson said.
Local funding is expected to rise by $2.9 million, primarily driven by a projected six6 percent increase in the local property tax digest and an anticipated $1.3 million in revenue from the Joint Development Authority’s distribution to participating counties.
However, these gains will be partially offset by a projected $500,000 decline in real estate, intangible and title ad valorem taxes, as well as a $50,000 decrease in investment income.
“Although there is modest growth in local revenue, the significant decline in state funding presents a challenge,” Robinson said. “If this pattern continues, the burden may increasingly shift to local taxpayers and difficult choices may lay ahead.”
Once discussion ended, District 2 Representative Eddie Johnson made the motion to adopt the FY 2026 budget, which was seconded by Trey Bailey.
While the $265 million mark was formally approved, it is all but certain that the number will fluctuate before the end of the fiscal year. Last year, the BOE approved a $239.4 million budget. That number had since been amended to $248.1 million due to various needs throughout the school year
“If there are any discoveries that haven't been pointed out so far, those need to continue to be investigated, discussed and brought forward to amend the motion,” said Vice-Chair Shakila Henderson-Baker. “If the budget needs to be amended to reflect those discoveries then it needs to be amended to do what is right for all employees.”
