Understanding the FY2026 Superintendent’s Recommended Budget
Total Budget = $3.4 billion
What is a budget?
A budget outlines the district’s plan for managing limited incoming funds and spending to address district priorities leading to student success. In Georgia, the budget must be approved by the Board of Education each year, by July 1. Budgeting is about making sure the district has the resources to provide quality education for each and every student while staying financially sustainable.
How is the budget funded?
State Revenue: $1.47 billion - 43.9%
Public funds from the state government approved each year. Most of these funds are given to Georgia schools through a formula called Quality Basic Education (QBE), and other state grants.
Local Revenue: $1.67 billion - 49.8%
Most comes from tax collections:
Countywide Property Tax— school districts must collect tax revenue from their county by setting a “school millage rate”. The current school millage rate is 19.10 mills and Gwinnett County Public Schools (GCPS) is proposing lowering the school millage rate to 18.9 mills. Currently, 0.1 mill provides GCPS roughly $6 million dollars.
Sales Tax (E-SPLOST)— voter-approved one penny sales tax on spending in Gwinnett County for GCPS.
Federal Revenue: $212 million - 6.3%
Public funds from the federal government to supplement support for educating students at risk, such as those experiencing poverty and students with disabilities.
Schools = 88%
Examples: Classroom teachers, paraprofessionals, counselors, bus drivers, principals, assistant principals, custodians, clinic workers, SROs, nurses, bookkeepers, school nutrition workers, library media staff.
Central Office Support for Schools= 12%
Examples: Technology, budget, payroll, purchasing, human resources, data, facilities, building maintenance, distribution, accountability, safety, communications, and business staff.
Other Operating Cost:$388 million - 11.4%
Examples: Instructional materials, supplies, computers, staff training, utilities, and contracted services.
Capital Outlay: $256 million - 7.4%
Examples: School buildings and facilities, buses, textbooks, playgrounds, renovations, HVAC, roofing, athletic facilities, student and staff computers, safety and security, technology systems, and cybersecurity infrastructure.
Debt Service:$157.6 million - 4.6%
Costs of paying debt principal and interest payments
What are the operational activities?
Student Instructional Services:$2.34 billion - 77.5%
Includes direct classroom instruction, student support services, improvement of instruction, media services, and school administration.
Maintenance, Operation, and School Safety: $199 million - 6.6%
Includes the cost of maintenance and operations of buildings, vehicles, equipment, and school safety and security.
Student Transportation: $174 million - 5.7%
Includes the cost of transporting students.
Essential Support and Administration Services: $166 million - 5.5%
Includes general administration, business/financial support services, and central support services.
What is fund balance?
Fund Balance is the money that remains after all costs have been accounted for, safeguarding the district against rainy day financial challenges. The industry standard calls for saving an equivalent of at least three to six months of monthly expenditures.
Did you know? GCPS is one of only four school districts in Georgia with the highest credit rating from both Moody’s (Aaa) and S&P (AAA) rating agencies!
New for the next school year
Increase Compensation and Benefits – Remain competitive for the best teachers and staff
Safe and Welcoming Schools – Improve school buildings and add safety measures
Funding Literacy Proficiency – Add 25 literacy specialists to elementary and middle schools
Each and Every Student – Add 114 special education staff, continue to support multilingual learners, and add name-reading system for high school graduation ceremonies
College and Career Readiness –Support middle and high schools with college and career online system
GCPS’ monthly operating expenditures are at least $200 million, requiring the district to save $600 million at a minimum to cover three months of monthly expenditures.
Why do school budgets increase?
Rising inflation
Paying cost of living (salary) increases
State-mandated increases (teacher health benefits and retirement costs)
Underfunded state programs (transportation, special education and Pre-K)
Lowering class sizes
Growing student enrollment
Expanding student services and programs
What poses a risk to school budgets?
State and Federal revenue cuts (austerity)
Unanticipated decreases in property tax collections
Lower than expected E-SPLOST collections
Delays in tax collections or grant revenues
Major unexpected economic, social, or environmental events
Federal, State, or Local legislative changes
What is a millage rate?
A millage rate is the tax rate used to calculate local property taxes.
The millage rate represents the amount per every $1,000 of a property’s assessed value.
Assigned millage rates are multiplied by the total taxable value of the property to arrive at the property tax amount.
For example:
Market Value
=
$300,000*
Assessed Value
=
120,000 (40% of Market Value)
Millage Rate
=
0.005 or 5 mills
Annual Property Tax
=
$600 property tax amount
120,000 x 0.005 = 600
*The Market Value and Assessed Value are determined by the County Assessors.
Has GCPS considered a millage rate reduction?
Yes. GCPS is proposing to lower the school millage rate from 19.10 to 18.90 for FY2026 to provide homeowners with property tax relief. This reduction of two tenths of a mill results in a loss of approximately $12 million in revenue for GCPS.
The millage rate has been lowered in the last six years from 19.8 to 19.10
GCPS has launched its first-ever online budget book for the 2025–26 school year budget (FY2026). This innovative tool shows how GCPS plans to spend money next school year. The Board of Education will review and vote to tentatively adopt the plan at the board meeting on April 17, 2025. You can also view the full budget calendar on our website. The online budget book includes all the details about the FY2026 Budget. It is easy to use and can be translated into over 180 languages.
