Savannah-Chatham schools approve budget as superintendent warns of “new fiscal realities”

SAVANNAH, Ga. (WTOC) - The Savannah-Chatham County Public School System approved its annual budget, but Superintendent Dr. Denise Watts said the district is facing “new fiscal realities” and difficult trade-offs in the year ahead.

“I say with almost 100% confidence that I do not believe most of our employees understand the new fiscal realities that we are in, and the choices and tradeoffs that we will need to make in the next year,” Watts said.

Watts said this year’s budget is a sign of what’s to come as property tax exemptions, slowing revenue growth and decreased enrollment force the district to make cuts. She said the district’s financial future is unclear.

“I don’t we know that, I don’t think we all really fully understand what that looks like,” Watts said.

A state law called the Homestead Exemption freezes property taxes for some homeowners. Watts said that means less money for the district to operate and impacts $8.7 million this year.

District leaders also said enrollment has declined by more than 1,100 students since 2023, resulting in nearly another $5 million decrease.

The school system is seeing a revenue increase of 3.3%, but leaders said that is one of the smallest growth rates in recent years. District officials said the combined factors accounted for roughly $28 million less than the school district expected.

“We do not have a 28 million dollar shortfall. We have cost savings,” said Roger Moss, the school board president.

According to the budget, the district will need to use more than $17 million from its reserves.

District leaders said the budget could still change because the district’s millage rate has not yet been adopted.

“I want to do it smart, I want to do it holistically rather than forcing quick decisions over 60 days so I see this as a bridge budget and I’m going to support it,” said Shawn Kachmar, the District 4 board member.

Watts said the district’s focus remains student success, but that reaching goals will require discipline and trade-offs.

“The destination — student success — is not an option. We will realize and manifest what is in the strategic plan. How we get there is going to be through discipline and through choice of trade-offs and just adjusting to the new reality,” Watts said.

The school board has two meetings in July to set a millage rate to adjust taxes. The board is set to adopt a millage rate July 15.