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Randolph County schools report modest expense increases and rising energy, transportation and custodial costs
Summary
District finance staff told the board third‑quarter and year‑to‑date expenses are higher than last year; staff highlighted energy costs up roughly $453,287 (July–March), contracted transportation costs up about $148,027 and an increase in custodial contract costs of about $736,007.25 as areas to watch.
District finance staff presented third‑quarter and year‑to‑date revenue and expense figures in the work session and flagged several cost pressures for board attention.
Finance staff said third‑quarter expenditures rose approximately 4.39% over the prior year and year‑to‑date expenditures were about 5.68% higher. Staff noted federal revenues are recognized as federal funds are spent and that year‑to‑date federal expenditures were lower than the prior year (down about 20.6% compared with the prior year) because some extra funds were present in the earlier period.
Staff identified three near‑term cost pressures: energy consumption, contracted transportation and custodial services. For July through March, energy costs were about $453,287 higher than the same period last year. Contracted transportation costs for the same period were roughly $148,027 higher than the prior year, and the district reported the contracted custodial expense increased by about $736,007.25 compared with the prior year; staff said the custodial contract had previously been paid 100% with ESSER pandemic funds and that shift back to district funding contributed to the increase.
The presenter noted that capital outlay receipts and timing can shift year to year; one example discussed was the timing of a $950,000 facility repair plan request that affected year-over-year comparisons. School nutrition revenues also declined versus the prior year, and staff said federal one‑time funds available the previous year were not available in the current year.
Board members asked about a healthy fund-balance target. A district speaker said, “30% is probably good,” and discussed maintaining a cushion of fund balance; the presentation also referenced a current‑expense fund balance that the speaker said was about $10 million. The district reminded the board that school‑nutrition rules require a three‑month operating fund balance and that the program must operate in the black to continue charging indirect costs.
Staff closed by saying cash balances fluctuate with project timing and that the district will continue to track energy, custodial and transportation costs as ESSER funds wind down and contracts become locally funded. No formal budget adoption or change was voted at the work session; staff will bring formal budget recommendations to the board at the scheduled meetings.
