Macon County officials warn $1.98 million local operating gap as school capital projects proceed

Macon County commissioners and the Macon County Board of Education held a joint work session to review school construction updates and local operating finances, where school officials said the district faces a $1,980,225.68 shortfall in its local current expense budget and described a range of short‑ and long‑term options for closing the gap.

The district’s local current expense budget totals $12,672,245.68, school presenters said, and the county’s current contribution to that amount is $10,692,020, leaving a local shortfall of $1,980,225.68. “This shortfall represents real operational pressure,” said Laney, a school finance presenter, adding that the request includes projected state‑mandated salary increases the district built into the plan: a 4% raise for certified staff and a 3% raise for classified staff, plus a 5% budget increase for utilities.

The presentation and ensuing discussion threaded together several issues: the district’s use of federal ESSER funding during and after the pandemic, the size and recent use of the school fund balance, outstanding debt service tied to school capital, and possible local revenue options such as a quarter‑cent local option sales tax.

On federal relief and staffing, school leaders said the district created about 23 positions using ESSER funds during the pandemic; all but one of those positions have been moved off ESSER funding or ended, they said. The district had placed one mental‑health provider at each school (11 positions); presenters said only one mental‑health position remains fully supported by a federal grant. The district reported it has not laid off staff and has preserved core classroom positions, but has left about five positions unfilled this year as a cost reduction measure.

Members of both boards pressed for clarity about the district’s fund balance and how it was used. School leaders said the district conserved about $3.7 million of one‑time federal or other extra funds in prior years to prepare for anticipated state salary increases and that they drew roughly $1.1 million from the fund balance in the most recent year. School presenters said they expect the district to end the coming fiscal year with roughly $1 million in fund balance, and they emphasized that continuing to draw on reserves is unsustainable.

County commissioners described structural budget pressures on the county side, including debt service and other obligations. County finance staff said the county is currently transferring roughly $2,000,000 from the general fund to cover school debt service needs this fiscal year; commissioners described a roughly $1.99 million gap between the county’s dedicated receipts for debt service and the debt payments the county makes on behalf of school projects.

Several commissioners and school board members urged joint pursuit of additional, stable revenue sources. Commissioners revived a long‑running local discussion about a quarter‑cent local option sales tax that county staff estimated would bring approximately $2.2 million annually. Commissioner remarks emphasized that such a tax would be paid mostly by visitors and nonresidents and that proceeds could be earmarked for schools or other county priorities if voters approve it.

Capital projects and construction updates were a substantial portion of the meeting. Vannoy Construction representative Caitlin Jones reported Highlands School renovation and addition work is at the tail end of the project and on budget. “We are coming in on budget,” Jones said, noting that a temporary certificate of occupancy (TCO) for three areas was issued Aug. 23, a month ahead of contract. Jones described completed work including new labs, a media center, an outdoor classroom and pre‑K spaces; she said a few finishing items and final budget reconciliations remain.

Carol Daniel Construction representatives Dave Gotwalt and Josh Cochran presented a drone‑based progress update for the new Franklin High School and stadium. Gotwalt said exterior work on several buildings is near completion, roofing is underway on the field‑house and stadium precinct, and contractors are focused on grading the “Frog Town” slope to reach target elevation. He said the stadium’s foundation walls are largely placed and that work will move inside once the buildings are weather‑tight. The team noted that the new student parking lot has been turned over and that plaza and sidewalk work will begin next Wednesday, with contractor hours scheduled overnight and into evening hours to allow concrete work to set. Work hours for that sidewalk phase were described as roughly 5 p.m. to 7 a.m.

Contractors described a four‑foot chain‑link fence planned around the track and said they will follow the architectural and safety specifications for exits and stairways; Gotwalt said modern code requires multiple stairways and accessible exit paths from the gym levels. Carol Daniel representatives also noted a virtual walkthrough of the Franklin High School design by LS3P and invited board members to attend a scheduled review of interior plans.

Commissioners and school leaders also discussed East Franklin Elementary. School staff said the aging building has structural and infrastructure issues and that an eventual new elementary school is a high‑priority capital need. Presenters advised that a state “needs‑based” capital grant process can be pursued again in future funding cycles; the district plans to prepare assessments and other documentation ahead of the next application window.

A longstanding local issue — the Highlands soccer field — drew practical engineering discussion. County and school representatives agreed surface drainage, an obstructed drainage channel and a rock wall are the principal causes of water pooling. County commissioners and staff recommended targeted drainage work and “top dressing” as lower‑cost, near‑term steps to improve playability while the boards consider long‑term solutions; presenters cautioned that full regrading and artificial turf on the site could cost in the high hundreds of thousands or more depending on how deep wet soils must be removed.

Formal action taken at the meeting included a resolution required by North Carolina law to obtain a performance bond for the county’s incoming interim finance officer. Commissioners approved a motion to adopt a resolution to require a performance bond for Lindsey Leppard in the amount of $1,000,000. Commissioner Shields moved the resolution, Commissioner Breeden seconded, and the motion passed by voice vote.

Board members agreed to continue regular joint meetings and to form a quarterly liaison cadence to share budget data, capital plans and timelines. School and county staff said they will circulate the finance presentation and construction materials and will follow up with requested details about fund balances, debt service, and building assessments.

The meeting produced no final commitment to a new revenue source; instead members scheduled further technical work, joint planning and outreach to state legislators and potential grant sources as next steps.