Johnston County Board approves preliminary 2025–26 budget; officials cite careful planning amid declining federal funds

A member of district finance staff presented the Johnston County Public Schools preliminary 2025–26 budget and the board voted to approve it after a brief discussion. The presentation outlined fund balances, revenue assumptions and priority spending for the coming year. The presenter reported the district ended fiscal year 2024–25 with roughly $14 million in local fund balance and highlighted that federal ESSER funding is declining, reducing previously available revenue. The capital outlay program spent about $106 million last year (primarily bond-funded work), and the presenter recommended holding $1 million in capital outlay fund balance for contingencies. School nutrition was singled out as operating at a loss: the presentation said the program spent approximately $22.5 million and held about $2.6 million in remaining funds, with revenue down and costs up. The presenter described that the district will monitor profitability and look for market responses. The state——s continuation budget was described as largely maintaining prior-year funding levels but increasing allotments tied to benefits and retirement matching; some allotments decreased (notably small allotments tied to low-wealth supplements and teaching assistant allotments). The presenter explained that the district budgets locally for pay-step increases and that some local adjustments may be required depending on final state funding levels. Board members asked about the size and sustainability of the planned use of fund balance and the presenter explained the practice of budgeting some fund balance as a safeguard while expecting to trend toward breakeven. The board approved the initial budget in a voice vote after motions and seconds were called. The presentation was an action item; the board moved and seconded the motion and the chair called the vote, with the motion recorded as approved. Finance staff said auditors will present audited financial statements at the next meeting.