McDowell Board approves local budget, shifts toward 12 position reductions and fund-balance draw

The McDowell County Board of Education on Oct. 13 approved the district’s local general fund and local capital outlay budgets for the 2025–26 fiscal year, after revising earlier reduction plans in light of an increase in county funding.

The vote adopted the budgets as presented by district finance staff and followed a finance committee review. Superintendent Dr. Tracy Grit and finance staff said the county provided a $600,000 increase compared with the $720,000 the district had originally budgeted to request; district leaders then adjusted planned personnel reductions and fund-balance draws to close the gap.

Board members stressed the district’s ongoing effort to hold a strong fund balance while responding to reduced state “low-wealth” allocations and declining average daily membership (ADM). Finance presentations showed the district took $400,000 from fund balance last year and currently retains roughly $8.7 million in reserves (about 62% of local annual spending). The district projects a remaining need of about $672,000 to be covered from fund balance in the coming year after the county increase and other adjustments.

Budget staff described the path from an initial projected shortfall of about $2.1 million to the approved plan. The original April projection assumed 10 position reductions alongside a $720,000 county request and a planned $720,000 fund-balance use; after the county provided $600,000, the administration revised staffing reductions to 12 positions (through reallocation or reduction) and lowered the planned fund-balance withdrawal to the roughly $672,000 figure now reflected in the adopted resolution. The resolution passed without further amendment.

The board packet and staff presentation also itemized capital expenditures projected through 2041 and highlighted that capital funds are housed at the county level. Staff reiterated that capital project money is reserved for buildings and facilities (roofing, HVAC, gym and locker-room work, a tennis-court project and land acquisition) and that state and federal budget lines remain base budgets subject to later amendments.

Board members and the superintendent said the district has pursued aggressive grant-writing to help offset recurring costs, citing recent and ongoing awards in early education, mental health, safety, and other programs that reduced pressure on the operating budget. Dr. Grit noted that budget amendments will follow as state and federal funding details arrive.

The motion to approve the local general fund and local capital outlay budgets passed by unanimous voice vote.