FY 2026 Budget and Long-Term Outlook
Protecting Classrooms. Planning Ahead
Fulton County Schools has a proud record of academic and financial responsibility. We maintain one of Georgia’s top-performing school systems with a graduation rate above 90 percent and state-leading literacy scores in early grades. At the same time, we have managed taxpayer dollars with care, seeking to earn public trust through consistent and strategic budgeting.
Now, as we face revenue challenges and rising costs, we are taking action to protect classrooms and secure a strong future.
Facing Financial Headwinds with Resolve
The district has a well-earned reputation as one of Georgia’s most fiscally responsible school systems. We build new schools without borrowing, thanks to a pay-as-we-go capital plan funded through E-SPLOST. For five straight years, our Board of Education has lowered the property tax millage rate, keeping it among the lowest in metro Atlanta. When federal COVID-era funding expired, we transitioned responsibly, preserving only those investments that deliver results, such as personnel and programs that support literacy and enhance school safety.
But like school systems across the country, we now face economic shifts that require hard choices and long-term planning.
Pressures on Revenue and Rising Costs
Enrollment is declining, driven by national trends and a tight housing market. Fewer students mean reduced state funding through Georgia’s QBE formula. District staff anticipate an additional local tax exemption for senior citizens to pass by local referendum, which will significantly reduce local tax revenue. At the same time, costs are increasing across the board. Inflation continues to affect every aspect of our operations, from fuel and food to classroom supplies. To remain competitive in the job market, we have invested in staff salaries and benefits. State-mandated increases to employer contributions for health care and retirement are beyond our control but have increased costs substantially and pose a real and lasting impact on our bottom line.
The FY 2026 Budget
The Board of Education has adopted the FY 2026 budget, totaling just over $2.46 billion across all funds. This includes:
- $1.47 billion for the General Fund, which supports salaries, academic programs, transportation, and student services
- $803.5 million for capital improvements through E-SPLOST
- $65.7 million in special revenue funds
- $59.4 million for school nutrition
- $43.2 million for the pension fund
- $16.7 million for student activity funds
The budget is based on a tentative maintenance and operations millage rate of 17.080 for the 2025 property tax year. Based on current spending projections, the district expects to end FY 2026 with a fund balance of approximately $287 million, representing nearly 20 percent of General Fund expenditures.
Taking Action Now
This year, the district will responsibly use a portion of its reserves to close short-term gaps while also taking the following steps:
- Reduce non-personnel central office expenses by five percent
- Eliminate unfilled positions at the central office
- Close two elementary schools to align with regional enrollment trends
- Raise school meal prices to reflect increasing food costs
- Review vendor contracts for redundancies and negotiate savings
- Reassess technology and program investments to ensure value
These steps reflect the district’s longstanding commitment to careful, transparent stewardship. They are not easy, but they are necessary to protect what matters most — our students and our schools.
Millage Rate Hearings
Public hearings on the proposed millage rate will be held as required by law. Community members are invited to attend:
Two meetings to be held on August 12, 2025, at 11:30 a.m. and 6:00 p.m. at 6:00 p.m. at the North Learning Center, 450 Northridge Parkway, Sandy Springs, Georgia, and one hearing on August 19, 2025, at the South Learning Center, 4025 Flat Shoals Road, Union City, Georgia.
More detailed information, including the FY 2026 budget book, allotment guidelines, and the long-range financial forecast presentation, is available on the district website here.
What Comes Next
Fulton County Schools remains committed to educational excellence and responsible management of every public dollar. By planning ahead, we are making sure our students continue to benefit from a strong, stable, and high-quality public education system.
A Long-Term Plan for Stability
While the current year is balanced, long-term projections show the need for early and sustained action. Without intervention, the General Fund could fall into deficit by FY 2029 and drop more than $113 million below zero by FY 2030. These are forecast figures, not approved budgets, but they underscore the importance of planning now.
To prevent this outcome, the district is implementing a strategic framework known as G.L.I.D.E.:
- Growth Opportunities,
- Lean Operations,
- Investment in Innovation,
- Diversified Revenue, and
- Enhanced Efficiency.
The G.L.I.D.E. approach will allow Fulton County Schools to make smart adjustments while preserving high-quality instruction. The district can maintain a healthy reserve, avoid structural deficits, and prevent deeper cuts in the future, even in a tight economy.
These steps are not easy, but they reflect the same careful and transparent stewardship that has guided Fulton County Schools for years. Our focus remains on students. As we plan for the years ahead, we will continue to make thoughtful decisions that protect classrooms, support staff, and honor the trust placed in us by the taxpayers of Fulton County.
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