Board approves second reading of FY2025–26 budget with $527,828 deficit; administrators' raises, programs deferred pending revenue

The Newberry County School District Board advanced the FY2025–26 budget at second reading Wednesday, adopting revenue and expenditure estimates that leave a projected shortfall of $527,828.

Finance director Olivia Dowd (presented as “Miss Dowd” in the meeting) summarized local and state revenue projections and planned expenditures. She reported total proposed expenditures of $75,661,899 and total estimated revenue of $75,134,071. “Total proposed expenditures at this time are $75,661,899. Total proposed revenue is $75,134,071,” she said.

Key budget items - State aid to classrooms (general fund): $26,678,749; EIA funds: $5,810,542; combined state revenue noted in presentation. - Local revenue (current operations taxes): projected $20,200,000 for 2025–26, an increase of $757,686 from last year’s projection. - Certified staff salary increase: $1,500 plus a step (total cost reported: $1,313,176). - Classified staff increase: 10% plus a step (projected cost: $996,507). - District administrative salaries: board requested removal of recurring COLA/step increases; administrators instead are included for a 2% nonrecurring bonus funded from the fund balance if approved. - Technology, facilities, after-school and summer-school funding requests were reduced or removed pending additional local revenue from an anticipated county reassessment. - Debt service note: the budget includes a legal note appropriating $6,056,127.08 for debt service on installment purchase revenue bonds issued in February 2005.

Board discussion and fund-balance implications Board members questioned the fairness of treating district office administrative staff differently from other employees. Several members pushed for revisiting the 2% bonus and the omission of step increases for administrators if additional local revenue materializes from the county reassessment expected this fall. The finance director said additional local revenue, if realized, could allow the board to restore recurring increases and that any retroactive pay adjustments would be handled through later board action.

Votes and procedure A board member moved to accept the second reading of the FY2025–26 budget; the motion was seconded and passed by oral vote. The finance director noted that the previously approved $28,000 for the superintendent search would be a one-time use of fund balance and suggested it need not be added to recurring expenditures.

Why this matters The budget sets pay priorities and program funding for the coming year and relies on a portion of fund balance to cover the current shortfall. The board’s decision to delay recurring increases for district administrative personnel, while providing raises to certified and classified staff, generated debate about equity and long-term fiscal planning.

Ending Board members asked staff to report back if the county reassessment produces additional local revenue, and to outline steps for potentially retroactive pay adjustments. The budget will return for final action as required by the board’s calendar.