Board Adopts FY27 Budget: Strategic Priorities Drive “Students First” Decisions

The Savannah-Chatham County Public School System Board of Education has approved the Fiscal Year 2027 (FY27) General Fund Budget to ensure the District can sustain operations beginning July 1, 2026. This action allows the District to continue serving students and families through the adoption of the final millage rate, currently scheduled for July 15, 2026.  The adopted budget remains subject to amendment following the final adoption of the millage rate.

“This is a budget I believe in—one that allows us to maintain our core operations while making strategic investments that support student success and strengthen our schools for the future,” said Superintendent Dr. Denise Watts.

A Budget Built for Stability and Student Outcomes

The FY27 Budget is built for stability and student outcomes.  It maintains core District operations while prioritizing student outcomes and workforce investment. With an overall 3.4% increase in expenditures – the lowest increase in the past decade – the budget reflects a more disciplined and intentional approach to spending.

This budget provides for the baseline student experience while directing resources toward strategies that are proven to improve outcomes and support the District’s long-term success.

Strategic Investments in Students, Staff, and Schools

The FY27 Budget includes targeted investments aligned to the Strategic Plan and focused on developing future-ready students, including:

• Expansion of high dosage tutoring and school transformation supports
• A differentiated staffing model and performance-based compensation for school leadership
• Expanded mental health programming
• Early Childhood Mixed Age Montessori program
• Implementation of a formative assessment platform
• Launch of a Choice Shuttle transportation pilot

This budget also represents investments in our staff by prioritizing competitive compensation and support for employees:

• 2% Cost of Living Adjustment (COLA)
• Average 2.2% step increases for all employees
• Combined impact of approximately 4.2%, slightly outpacing inflation

Mandatory Cost Drivers

SCCPSS’s budget growth between FY26 and FY27 reflects changes across mandatory, baseline, and strategic investment categories.  A significant portion of the budget is driven by required state costs and obligations such as State Health Benefit Plan, Teacher Retirement System, and unfunded mandates like the need for literacy coaches.  This budget also acknowledges revenue constraints and legislative impacts on funding.  We are managing these realities while still prioritizing students.

Influences on Projected Revenue

The District received tax digest information on June 11, 2026, that indicated property tax revenues were lower than the 5% growth model used to prepare the preliminary budget recommendation.  Estimates show the digest growth was closer to 3% due in part to the application of the homestead exemption under HB782 approved by voters in November of 2025 that was designed to provide a measure of tax relief.  HB782 provided tax relief that resulted in $8.7 million dollars less than projected revenue growth.  This exemption is applied in addition to other existing exemptions for homeowners.  This tax relief in addition to declining enrollment, lower QBE funding growth, state grant expirations, and overall declines in digest growth totals an unfavorable revenue impact of $28 million dollars.

Strengthening Budget Processes and Driving Cost Savings

Understanding the growing revenue constraints, and limits to existing financial capacity, SCCPSS has focused efforts on strengthening processes, and pursuing savings with minimal impact to students and staff.  In response, the District has strengthened its financial management practices and identified efficiencies while protecting core services:

• Redirected approximately $18 million from lower-impact programs to higher-impact academic strategies
• Added e-ROI informed academic investments, replacing ineffective ones
• Improved budget accuracy to reduce reliance on mid-year adjustments
• Implemented more rigorous review of department budgets
• Reduced non-personnel spending and prioritized student-centered investments

Millage Rate Recommendation and Public Hearings

The Superintendent is recommending a flat millage rate of 17.331, with no increase to the millage rate. The changes in property valuations reflected in the tax digest, the recommended rate is 1.65% above the rollback rate and is therefore required to be advertised as a tax increase under state law.

The Board will hold three public hearings to receive community input prior to final adoption:

• July 8, 2026 at 11:00 a.m.
• July 8, 2026 at 6:00 p.m.
• July 15, 2026 – 6:00 p.m.

Following the third public hearing, the board will meet in a special session called to approve the millage rate and any final amendments to the budget.

FY27 Budget Snapshot

• Total Revenues: $687.5 million
• Total Expenditures: ($704.7 million)
• Use of Fund Balance (Reserves): $17.2 million

Understanding the Use of Fund Balance

The use of General Fund balance to support operations is not unusual for school districts, particularly during periods of revenue transition.

Even with the planned use of $17.2 million, SCCPSS will continue to maintain fund balance levels that meet legal requirements and Board policy, ensuring financial stability and responsible management of public resources.

Looking Ahead:  Our Budget Needs and Our Commitments

The FY27 Budget reflects a balanced approach to navigating financial challenges while continuing to invest in student success. It sustains operations, supports teachers and staff, and advances key priorities, while maintaining a flat millage rate for taxpayers. The budget represents a 3.4% increase in General Fund Expenditure Budget.

This budget delivers funding that invests in students and teachers to help drive transformation in schools, improves student outcomes and focuses on the strategic plan objective of developing future-ready students. 

Our future includes new, and more rigorous reviews of our operations, including workforce assessments at both central office and schools, and potentially significant changes to align our organization with student needs and changing revenue environment.  We are laying the groundwork for longer-term transformation, including school footprint optimization, pay-for-performance systems, and improved department operations

FY27 BUDGET:  https://sccpss.community.diligentoneplatform.com/document/fd72d5bf-73cf-43a6-835a-ef37822f6250

FY27 TENTATIVE MILLAGE RATE: https://sccpss.community.diligentoneplatform.com/document/f6286aa9-6698-464c-84f2-86be44d6722e

Dr Watts speaks to the FY 27 Budget and Financial Outlook