DeKalb County families heading into the Monday, Aug. 3 first day of school will do so without new buses or upgraded fire alarms at several campuses after the school board moved to pause more than $119 million in capital projects to absorb a $12 million budget shortfall.

The shortfall traces to a filing error in 2022. The district failed to submit a certificate of distribution to the Georgia Department of Revenue, causing ESPLOST VI sales-tax revenue to be split incorrectly among DeKalb, City Schools of Decatur, and Atlanta Public Schools for four years. DeKalb received more than its approved 90.44% share from July 2022 through May 2026, and now must repay roughly $12 million: $9.1 million to Decatur and $2.1 million to Atlanta Public Schools.

Chief Operating Officer Erick Hofstetter told the board the repayments will come from earned interest on the district's reserves, according to Rough Draft Atlanta.

The paused projects go beyond buses and fire alarms.

Construction at Kittredge and Allgood elementary schools is also on hold, along with other ESPLOST-VI work totaling more than $119 million in planned spending.

Board members question single option

At the July 13 board meeting, District 2 board member Whitney McGinnis pressed administrators on the lack of alternatives.

"Nobody likes to make these decisions, but I do think that responsibility does rest with the board," McGinnis said, as reported by WSB-TV. "And it makes me uncomfortable to be presented with one recommendation."

At least one other board member echoed that concern. McGinnis also called for a plain-language explanation of the two separate problems: the repayment owed to partner districts and the need to recalculate all future ESPLOST VI revenue projections now that the correct formula is in place.

When a board member demanded accountability for the four-year mistake, Interim Superintendent Norman Sauce pointed to leadership turnover and remote work in 2022 as contributing factors.

What it means locally

The decision lands days before students at Dunwoody High School, Chamblee Charter High School, and area elementary and middle schools return Monday, Aug. 3. The district's earlier push toward propane buses to cut fuel costs now faces a purchasing freeze with no announced end date, leaving the existing fleet to cover all routes.

Board Chair Allyson Gevertz said at the July 13 meeting that colleagues at Decatur and Atlanta Public Schools had been cooperative during the repayment process. A memorandum of understanding between the three districts still needs to be finalized.

The district's official statement, issued June 15, said the corrected certificate of distribution will govern revenue splits through June 30, 2027.