001I want to share this evening that the FY27 budget is less about FY27 and more about the years that follow. And in a real sense, it is primarily about preserving the long-term financial viability of our school system. During our first budget hearing, I presented a recommendation based on the best data available at the time. As was shared, important pieces of information were not yet available, namely our final revenue numbers which are linked to the county's tax digest. Even so, my recommendation was a budget informed by multi-year financial projections first shared with the board in January of this year, which predicts a challenging financial future. So, we took action and developed lean, a framework to reduce costs and increase revenue. over the next few years. The first phase of lean has already taken place and more
002dramatic action will follow in the coming months as has been communicated to our board and community. Since that hearing, new information has become available and after deliberation with our team and outside council, my recommendation remains the same. But I want to be clear about why. Unfortunately, there is no scenario in which strategic reductions which are surely forthcoming can offset our need to generate additional revenue. And so the question before us is not whether we can produce a budget to get us through the upcoming year. We certainly can. Rather, the question is how best to ensure that the school system remains financially stable for years to come. But board, let me remind you of what you have already done. Over the last six years, this board has demonstrated a remarkable commitment to our community. You have
003reduced the millage rate for six consecutive years, and that effort has returned more than $19 million to our community. You have made tax relief your foremost legislative priority. You have directly engaged state leaders on the importance of protecting taxpayers while also preserving the strength of public education. Simply put, this board has been responsive and proactive. In many ways, you have already accomplished what many would describe as improbable in today's fiscal environment, where school systems need every dollar they can get because of unfunded mandates, rising insurance premiums, inflation, and a slowing digest. You have governed a school system with one of the leanest central office operations in the state of Georgia. You have operated on substantially less revenue than you were authorized to collect. And despite those constraints, you have continued to produce results. That record
004deserves to be acknowledged. It demonstrates a commitment to responsible civic leadership and it demonstrates that this board has never viewed our community and our students as competing interests. But we must now confront our present condition. The resources that have been returned to our community and resource are resources that we desperately need to maintain the financial stability of this organization and recent legislative action have made it clear that future revenue growth will be more constrained than it has been historically and stricter financial oversight and intervention over school systems from the state department of education has now become law. At the same time, the expectations placed upon public schools continue to grow. Those realities cannot be ignored. And so this evening, I respectfully submitted that we have done what we can for as long as we can.
005There is now an opportunity to pursue a new course. As was the case when the tenative budget was proposed, I will be requesting that the board adopt the superintendent's budget recommendation in full. If adopted and coupled with the strategic expenditure reductions and operational efficiencies that will emerge through our lean initiative, I believe Newton County Schools can move beyond this temporary period of financial discomfort and position itself for long-term stability.