SPRINGFIELD, Ga. — The Effingham County School District is proposing an 11% increase to its fiscal year 2026 budget, largely due to rising costs for state-mandated health and retirement benefits for teachers and staff. The additional expenses are expected to be partially covered by a property tax increase of up to 12%.
The proposed $203 million budget will go before the school board for a final vote at 7 p.m. Thursday at the Effingham County Board of Education complex, 405 N. Ash St. in Springfield. The public is invited to attend.
Budget breakdown
The general fund — which covers salaries and benefits, health services, transportation, and safety — would rise from $182 million in FY 2025 to $203 million in FY 2026. Most of the increase is attributed to an $8 million spike in required contributions to state benefit plans.
“The state’s health and retirement benefits for certified employees — teachers — are going up 7% in 2026,” said Lauren Cain, the district’s director of finance. “And the benefits for non-certified employees — staff — are going up 36%. That’s a total of $8 million more in health and retirement benefits we have to cover.”
Although the state is increasing funding to Effingham schools by $4 million, it will only cover about half the benefits hike, Cain said.
As of July 1, premiums for the State Health Benefit Plan (SHBP) will nearly double since FY2023, jumping from $945 to $1,885 per month per employee. In addition, the district’s contribution rate to the Teachers Retirement System (TRS) has increased from 20.78% to 21.91%.
“I’ve been told by many CFOs in other school districts that they are also looking into increasing their millage rates to offset the rising healthcare and operations costs,” Cain said.
Tax impact
To offset the budget increase, the district is projecting a millage rate hike from the current 16.50 to as high as 18.50. For a homeowner with a property valued at $350,000, that could mean an additional $280 annually in school property taxes — a 12% increase.
The exact millage rate won’t be determined until later this summer, after the county tax assessor updates the county’s residential and commercial property valuations, Cain said.
"When the dust settles, we hope to get the millage rate as low as possible," superintendent Yancy Ford, said.
Staffing and capital projects
The district has added 71 new positions since establishing the FY2025 Budget, primarily for teachers and custodians. Cain said the increase includes more special education and ESOL (English to Speakers of Other Languages) instructors. The district is also ending its contract with a third-party custodial provider and bringing those staff positions back in-house.
The budget also includes $50 million in capital projects funded through ESPLOST (Education Special Purpose Local Option Sales Tax), previously approved by voters.
Major projects include:
Creekside Elementary: A new $41 million school in the Rincon area, scheduled to open in fall 2026.
Effingham County High School expansion: A $36 million project featuring an auxiliary gym, additional classrooms, a learning complex and an expanded weight room, expected to be completed by the end of 2025.
