NEWTON COUNTY —  The Newton County Board of Education received an early look at its fiscal year 2027 budget and approved a one-time pay adjustment for employees during its regular session meeting on Tuesday, March 17.

Chief Financial Officer Erica Robinson presented the budget update, outlining a multi-phase process and warning board members that upcoming budget cycles will require a different approach due to financial pressures.

Robinson explained that the district is currently in the third phase of its budget development process, which focuses on refining revenue projections and conducting internal reviews. She noted that economic conditions have forced the district to rethink its financial strategy.

“It is important to state clearly that this year’s process has required a slightly different approach than in prior years,” Robinson said.

She cited “the rising cost of doing business, substantially elevated insurance premiums, changes to the local digest and shifts in local fair share” as key factors influencing the budget.

As a result, the district has begun cutting costs while considering whether additional revenue may be needed.

“To be clear, this is not a one-year adjustment,” Robinson said. “FY27 represents the beginning of no less than two or three budget cycles that will look materially different from those in the past.”

Robinson emphasized that personal costs continue to make up the vast majority of the district’s spending, leaving little room to adjust other areas of the budget. 

“Historically, approximately 88% of our budget has been allocated to salaries and benefits,” Robinson said. “This reality leaves very little margin for flexibility.”

She added that improving efficiency will be critical moving forward.

The proposed FY27 general fund budget currently reflects an increase of about 1.3%, with roughly 89% allocated to salaries and benefits. The district’s revenue is split between state and local sources, at approximately 54% and 46%, respectively.

Despite lower per-pupil spending compared to neighboring districts, Robinson said Newton County Schools has recently improved student outcomes.

“In short, we have improved outcomes with comparatively fewer resources,” Robinson said. “The question that we must confront is whether this level of performance is sustainable without deeper investment.”

Robinson also addressed potential legislative and local policy impacts, including a proposed senior homestead exemption.

“For Newton County Schools, this is a fundamental matter of mathematics and solvency,” Robinson said, noting the district is working to determine the full financial impact. “It is clear that such a measure would create a significant revenue shortfall that would need to be offset through other means.”

Looking ahead, Robinson said additional investment will likely be necessary to meet the district’s long-term goals.

The board will next review a tentative budget, hold public hearings and move toward final adoption in the coming months.

“We will maintain transparency while also preparing our community for the financial realities ahead,” Robinson said. “Some decisions will be difficult, but they are necessary to ensure the long-term strength and sustainability of this district.”

In other business, the board approved a recommendation to provide a $2,000 one-time pay adjustment to all full-time employees.

The measure is largely funded through state allocations, including $3,974,298 provided as part of a statewide initiative aimed at supporting school workforce stability and employee retention. An additional $1.2 million in local funds will be used to extend the adjustment to employees not covered by the state allotment.

Board members approved the item without discussion.