DCSS FY ’27 budget reflects completion of major projects, rising employee costs

ALBANY— The Dougherty County School System’s proposed FY 2027 budget reflects a district transitioning out of a period of heavy capital investment while continuing to absorb rising employee compensation and benefit costs without increasing its property tax rate.

The tentative budget proposes approximately $258.4 million in anticipated revenues and $283.9 million in expenditures across all funds. While the budget continues to utilize fund balances in some areas, district officials say the proposal reflects routine financial planning and ongoing efforts to improve operational efficiency rather than broad spending cuts.

One of the most noticeable changes from the amended FY ’26 budget is a significant reduction in projected capital spending.

District officials said that decrease is largely attributable to the completion of two major construction projects: Phase III of the Dougherty High School Health and Physical Education Complex and Phase II of the Westover High School Health and Physical Education Complex. The Dougherty project is expected to be substantially complete in June, while the vast majority of work at Westover is also expected to be finished by the end of FY ’26.

Officials emphasized that the lower capital expenditures in FY ’27 do not reflect canceled or delayed projects but rather the completion of projects that required substantial spending during the previous fiscal year.

The proposed budget also continues to prioritize classroom instruction and student services.

Instructional expenditures remain the district’s largest expense category, with more than $118 million budgeted for instructional services and an additional $16 million allocated to pupil services.

According to district officials, the primary drivers behind those increases are employee salary step increases and rapidly escalating benefit costs, particularly health insurance.

The employer contribution to the State Health Benefit Plan has more than doubled during the past five years, increasing from approximately $11,340 per employee annually to $23,220. District officials estimate FY ’27 health insurance costs alone will exceed $9.9 million.

The district noted that despite those rising expenses, it has not increased its millage rate to offset the additional costs. Officials say the school system has reduced its millage rate in each of the past eight years, even as health care expenses and other operating costs have increased.

The FY ’27 proposal does not include any large-scale workforce reduction initiative.

Rising health care costs, employee benefits and personnel expenses continue to place pressure on local school budgets statewide. Those trends are evident in Dougherty County’s spending plan, where much of the projected expenditure growth is tied directly to compensation and benefit obligations rather than new programs or services.

While the budget summaries provide only high-level financial information, district officials said the proposal reflects continued efforts to improve efficiency in areas such as transportation, maintenance and administration while directing as many resources as possible toward classroom instruction and student support.

The Dougherty County Board of Education is scheduled to hold public hearings on the proposed FY ’27 budget before final adoption this month.