Asheville City Schools details budget challenges and funding impacts from charter school enrollment

In a recent budget work session held by the Buncombe County Schools Board of Education, key discussions centered around the financial challenges facing the district as it prepares for the upcoming fiscal year. The meeting, which took place on April 25, 2025, highlighted the complexities of funding in North Carolina's education system, particularly the reliance on state and local revenues.

As the board reviewed the budget, it became clear that the district is grappling with significant uncertainties stemming from state legislative changes. The state budget, which is typically finalized in December, remains unpredictable, with potential unfunded mandates that could impose additional costs on local schools. This situation is compounded by a decrease in average daily membership (ADM), which affects funding allocations. The district's ADM has only slightly declined, yet the state’s planning allotments have not aligned with expectations, primarily due to an increase in charter school enrollments.

The financial landscape is stark: state funding covers 56% of expenditures, while local sources contribute 33%, and federal funding accounts for just 8%. This year, the federal contribution has dropped significantly, reflecting the end of COVID-related funding programs. The board emphasized that local funding is crucial, especially for staffing needs that state and federal dollars do not adequately support.

A significant portion of the budget—84%—is allocated to salaries and benefits, underscoring the district's commitment to human capital. However, rising operational costs, including a staggering 78% increase in property insurance, have raised alarms. The board noted that these increases are not unique to Buncombe County but are part of a broader trend affecting schools nationwide.

The proposed budget for the 2025-2026 school year includes a request for an additional $10 million to maintain current services and address rising costs. This request reflects the district's ongoing efforts to align its budget with the needs of its students while navigating the constraints of state funding. The board members expressed a need for transparency with the public, stressing that the request for increased funding is not merely for surplus but essential for sustaining educational services amid rising operational costs.

As the meeting concluded, the board recognized the importance of community understanding regarding the financial pressures they face. With the state’s contribution to education funding declining over the years, the reliance on local dollars has become increasingly critical. The discussions at this budget work session set the stage for ongoing conversations about how to best support the educational needs of Buncombe County students in a challenging financial environment.