Expectations that Georgia state government will continue to withhold $4 million as an “austerity budget cut” and increased costs of mandated health and retirement benefits are expected to have a $7.8 million negative impact on the Cherokee School District’s operating budget.

Speaking on anticipated revenue for the 2018-19 budget at the Jan. 18 school board meeting, Chief Financial Officer Ken Owen said that if approved by the board, a longevity step increase in employee salaries would cost an additional $6.6 million. That would use up nearly all the revenue gains from enrollment growth and expected increases in property values.

With potential net new revenue of $1.5 million or less, the district may have to postpone non-essential new hires, new initiatives and significant reductions in class sizes, district Superintendent Brian V. Hightower said.

“While the governor’s budget does not call for the end of this ‘austerity,’ we have again asked our legislative delegation and our community to lobby on our behalf as it is again our school board’s No. 1 legislative priority,” Hightower said.