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Budget Update and Cost Savings Measures

May 27, 2025

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FY24-25 Budget Shortfalls and Proposed Plans to Address�FY25-26 Budget Savings for Balanced Budget

“Plans for fiscal sustainability”

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Budget Savings for 2025-2026 in Planning for a Balanced Budget – Savings Already Planned�

Personnel Savings

  • Reduce central office positions by 81($7,600,000)
  • Reduced school allotments by 148 positions ($10,360,000)

Total = $17,960,000

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Non-Personnel Savings

  • Reduce take home cars ($300,000)
  • Reduce cell phones ($145,000)
  • No more building base subs and ESS contract ($2,700,000)
  • Remove traffic control ($400,000)
  • Kingswood Savings including lease and utilities ($200,000)
  • Reduce funding supplemental programs ($1,652,000 million)

Total = $5,397,000

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Total Savings = $23,357,000.00

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25-26 Projected Position Management

Position Type

State

Federal

Other State PRC or Local

Total positions

Licensed Instructional Staff*

3,259.5

35.75

350.72

3,645.97

Instructional Support Staff*

247

33

108.5

388.5

Classified Instructional Staff*

360

258

271.5

889.5

School Based Administration

124

​

101.58

225.58

Central Office Administration (Program Mgr to Superintendent)

14.7

14.25

100.05

129

Non-Instructional Staff

280

2.25

487.79

770.04

Trade Skills

​

​

148

148

School Based Purchased Federal Positions

​

251.16

​

251.16

Bus Drivers*

275

​

​

275

Total

4560.2

561.41

1568.14

6,690.02

* Denotes positions listed in 10 month of employment positions

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2025-2026 Projected Cost to Local or Other State PRCs

Position Type

Other State PRC or Local

Projected Total Cost

Licensed Instructional Staff*

350.72

$24,039,167

Instructional Support Staff*

108.5

$9,240,229

Classified Instructional Staff*

271.5

$13,575,000

School Based Administration (11 MOE)

101.58

$9,936,227

Central Office Administration (Program Mgr to Superintendent)

100.05

$13,806,900

Non-Instructional Staff

487.79

$29,267,400

Trade Skills

148

$8,732,000

Total Position / Cost

1568.14

$108,596,923

Projected Local Supplement including Article 46 for Teachers as well as Asst Principal, Principal)

4,260.05

$50,0000,000

Total Position Cost

​

$158,596,923

* Denotes positions listed in 10 month of employment positions

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2025-2026 Personnel Cost Summary

Cost

Projected Total Cost

Total Position Cost including Local Supplements

$158,596,923

State DSSF (PRC 24) and At Risk (69)

($12,500,000)

Projected Other Revenues

($9,000,000)

County Request for Personnel Costs

($124,000,000)

Further Cost Savings Needed

$13,096,923

Important Notes

  • The numbers projected above are based 100% staffing based on school and district staffing plans.
  • The numbers include the already instituted personnel savings for a total of $17,960,000
  • The remaining $13,096,923 of savings will be made between May 14 and May 30.
  • The final costs savings plus the funding formula provided by the county will allow for a balanced budget. Any vacancies would be a cost savings and should not be used to cover any type of recurring costs.

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$13,000,000 Savings Plan

With this $13,000,000 we will have saved $35,357,000 heading into FY25-26

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Non-Personnel Recommended Costs Savings

�

Item

Cost Savings

1 Remote Day in Summer for all sites other than summer sites

175,000

Eliminate cell phones all together

215,000

Eliminate all out of state travel unless required and paid for in full by a grant

200,000

Printing costs

200,000

Eliminate supplemental and diagnostic programs not included in first round of eliminations

826,467

Limit waxing to only corridors in schools

100,000

Move costs associated with Teacher Academy to Wallace and change structure for TA training

309,000

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Additional Cost Savings

Total cost savings from slides 9 and10: $2,825,467

Eliminate substitutes for TA positions (other than those required by law)

400,000

Eliminate pre-k classrooms for underenrolled classrooms

400,000

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Choice School Transportation�Savings amount is $3,500,00.00

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Current Procedure-

  • Elementary School:
    • Students living within a choice zone of four or five school can receive transportation to any of the schools in that zone.�
  • Middle School:
    • Students living within a choice zone of three school can receive transportation to any of the schools in that zone.�
  • Policy:
    • While there are Administrative Regulations (AR) referencing choice transportation, the district’s transportation policy does not require us to provide transportation to students participating in the choice program.

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Student Totals-�

  • Total District Students K-8: 34,189
    • Elementary: 22,337
    • Middle: 11,852�
  • Total Choice Students : 5,587
    • Elementary: 3,517
    • Middle: 2,084�
  • Choice Students Registered for Transportation: 3,478�
  • Daily Average Participation: 2,500

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Document links:

Elementary Choice With Transportation Request

Middle Choice With Transportation Request

Elementary & Middle Choice Demographics

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Survey Participation

  • 1,080 respondents​�
  • Each grade level had 121-298 respondents​
    • Highest grade participation was 6th grade​
    • Grades K-8 surveyed​
    • Respondents chose Middle Schools 631 times and Elementary Schools 789 times (respondents could select more than one school)�
  • All 57 schools in survey were represented in responses​
    • High Schools and non-traditional schools not included as High Schools do not have choice transportation​�
  • Note – this is a high response rate for a survey with a very short timeline

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Class Size Increases

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Class Size Increase Data

 

Level

Total ADM Teachers (Original)

Total ADM Teachers (Increase +1)

Total ADM Teachers (Increase +2)

Total ADM Teachers (Increase +3)

Total ADM Teachers (Change +1)

Total ADM Teachers (Change +2)

Total ADM Teachers (Change +3)

Elem

1266.8

1255.8

1240.6

1233.4

-11

-26.2

-33.4

Middle

573

552

534

518

-21

-39

-55

High

709

687

663

643

-22

-46

-66

6th-12th

28

28

27

26

0

-1

-2

Alternative

25

25

25

25

0

0

0

Special

58

58

58

58

0

0

0

K-8

30.8

30.8

30.8

30.8

0

0

0

52

2690.6

2636.6

2578.4

2534.2

-54

-112.2

-156.4

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Class Size Increase Data – Modified for Smaller Schools

 

Savings (Increase 1)

Savings (Increase 2)

Savings (Increase 3)

Level

95%

88%

88%

Elem

$                706,080.38

 $             1,557,836.28

 $             1,985,943.96

Middle

$             1,347,971.63

 $             2,318,916.60

 $             3,270,267.00

High

$             1,412,160.75

 $             2,735,132.40

 $             3,924,320.40

6th-12th

$                                  -  

 $                   59,459.40

 $                118,918.80

Alternative

$                                  -  

 $                                  -  

 $                                  -  

Special

$                                  -  

 $                                  -  

 $                                  -  

K-8

$                                  -  

 $                                  -  

 $                                  -  

Total

$             3,466,212.75

 $             6,671,344.68

 $             9,299,450.16

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Total Saved with Transportation and Class Size Increase

  • Transportation = $3,500,000
  • Class Size increase by two students = $6,671,344
  • Class size increase by one student = $3,466,212

​

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Total Savings of slides 9 and 10 and transportation and class size increases = $12,996,811 (two student increase) or $9,791,679 (one student increase)

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Other Option

  • Employer Paid Dental Insurance – There is currently no cost to the employee. If we had employees contribute $25.00 per month for dental beginning in January 2026, we could save $725,000.00. Next school year, the savings would be $1,450,000. We are the only district in NC who pays 100%.

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Reduction in Force Option

  • Reduction in terms of employment for specific employee groups
  • Elimination of a specific position group and/or additional positions from central services

​

​

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Budget cuts and estimates are based on information known at this time. Once state and federal budgets are approved, additional adjustments may be necessary.

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FY2024-2025 Budget Deficit - $42,000,000.00

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Deducting from the Shortfall

  • Borrow from Child Nutrition fund balance = 4,000,000 (needs BOE approval) This will leave the fund balance with 8 million which keeps them in line with policy.
  • Recoup unemployment payback to the district = 1,500,000
  • Collect final payment of Indirect costs = 1,000,000
  • Grant reimbursements (pre-k, Gear up, etc.) = 1,500,000
  • Receive payment from Downtown School for pre-k tuition= 500,000
  • Use funds in Money Market account = 800,000
  • Use Investment Fund funds= 600,000

Total amount received to pay expenses (if BOE approves fund balance use) = $9,900,000

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Reconciliation Option

This leaves a total amount remaining of $32,100,000

​

  • Ask the county for a one-time payment of $32,100,00 to be paid back on terms agreed upon by both boards. If dollars received are in excess of what is needed, funds will be reverted back to the county. If BOE does not approve 4,000,000 in child nutrition funds, we would need 36,100,000.
  • This amount would clear state overages of 18,000,000 plus pay all remaining overages in local funds.

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Recommended Next Steps

  • Bring back to the Board, child nutrition MOU to borrow from fund balance
  • Bring back to the Board a potential reduction in force proposal for approval
  • Continue compiling budget savings proposed by employee groups and other stakeholders and bring back to the board with additional cost savings
  • Vote on a formal request for additional one-time county transfer of funds to pay back on agreed upon terms
  • Provide weekly budget/finance updates to the state board and our school district community

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Questions?