Habersham school board to review year-end finances

CLARKESVILLE, Ga. — The Habersham County Board of Education will close the books on fiscal year 2026 tonight as members review the district’s year-end financial report, weeks after approving a new spending plan that anticipates using reserves to balance the coming year.

The board’s regular meeting begins at 6 p.m. The agenda calls for a financial report before members consider approval of the June 2026 and fiscal year-end 2026 financial report during the business portion of the meeting.

The year-end numbers will provide the board with a clearer picture of the district’s financial position as it begins fiscal year 2027.

During the budget process, Chief Financial Officer Staci Newsome told board members the district’s FY27 general fund projects approximately $104.8 million in revenue against $105.6 million in expenditures, a gap of about $770,000 that is expected to be covered with fund balance.

That gap had narrowed substantially from the $2.9 million shortfall projected earlier in the budget process. Newsome said the district expects to have about $11 million in general fund reserves before drawing down the balance to approximately $10.3 million during FY27.

The general fund includes about $90.3 million in net salary and benefit costs after grant-funded offsets, with total operating expenses projected at approximately $105.6 million. Newsome previously told the board the district spends about $8.8 million per month when payroll and operating expenses are combined.

Board members discussed the importance of maintaining adequate reserves during the budget process. Board member Doug Westmoreland said the district should aim to maintain enough cash to cover two to three months of salaries, while Superintendent Patrick Franklin said administrators intend to work toward increasing the fund balance.

Newsome characterized the planned use of reserves as a strategic move that allows the district to maintain operations without making midyear cuts.

The district’s broader FY27 financial plan, including the general fund, debt service, capital projects, special revenue and school nutrition funds, projects approximately $131.8 million in revenue and $131.7 million in expenditures, with ending fund equity of about $17.9 million.

The board also approved a full rollback of the school system’s maintenance and operations millage rate from 9.122 mills to 9.048 mills for tax year 2026. The rollback rate is designed to offset increases in property assessments and generate roughly the same property tax revenue as the previous rate would have generated before reassessments.

Policies, vendors also on agenda

Along with the year-end financial report, board members will consider personnel recommendations and suppliers and vendors for the district’s agriculture department and FFA program.

Three policy matters are also scheduled for consideration. The board will consider the first reading of its employee leave and absence policy and final readings of policies addressing bullying and public participation in Board of Education meetings.

The board also will consider a list of surplus property from the district’s maintenance department.

Prior to the business portion of the meeting, the board is scheduled to recognize recipients of the Peach State Federal Credit Union Service Above Self Award and the Dr. Robert Barron Board Service Recognition Award. The agenda also includes public comment and Franklin’s superintendent’s report.

One item discussed during Thursday’s work session is not listed on the published agenda. Assistant Superintendent David Leenman told the board administrators planned to recommend a $106,840 contract with Gainesville-based Condition Air Systems to replace two HVAC units at Fairview Elementary School.

The contract does not appear among the business items on tonight’s published agenda. The board could amend the agenda before approving it at the beginning of the meeting.
The Habersham County Board of Education meeting begins at 6 p.m. tonight.