Finance staff warns of possible $1.4M shortfall; nutrition fund operating at a $525,000 loss

Bedford County School District finance staff presented a third‑quarter forecast April 10 that projects a potential $1.4 million gap between revenues and expenditures if pending county and state budget actions do not materialize.

Finance presenter (Mister Hagler) told the board he built expected state supplemental revenues and a $1,000 employee bonus into his forecast on the assumption the Virginia General Assembly’s budget is ultimately enacted. The forecast incorporated an assumed state contribution (not yet fully finalized) and county support; if those revenues are delayed or reduced, staff said the district will face a budget shortfall that would require expenditure cuts.

Hagler said the operating fund projects an ending balance of roughly $600,000 after factoring in the assumed revenues and a planned $1,000 bonus for employees, but he cautioned that the projection rests on the governor and General Assembly finalizing the budget. He identified roughly $2.7 million under instructional budget projections before adjusting for one‑time “all‑in” state funds that must roll into next year. He warned the board that, absent new revenues, “expenditure cuts” would be required and presented a menu of options the finance committee had discussed.

Board members focused particular attention on the nutrition fund, which Hagler said is running a net deficit of about $525,000 this year. Staff said inflation and meal program reimbursement formulas have strained the fund; the division is already planning staffing reductions (about 12 positions proposed for next year) and reassessing meal pricing. Hagler and board members noted that some federal and state grant rules and “strings attached” to certain meal zones affect calculations and price recommendations.

The finance presenter also described a proposed category transfer (approximately $400,000) from other operating categories into maintenance to cover higher‑than‑expected maintenance costs—electrical work alone was estimated at $225,000 more than anticipated. The board discussed timing and agreed further action would return to the board once final county and state figures were known.

Board members asked about process and accountability for material purchases tied to the math textbook adoption and for ensuring manipulatives and other materials are used rather than stored. Superintendent DuPair and staff described planned principal inventories, administrator observations and vendor training as part of implementation oversight.

No formal budget revision was approved at the meeting; Hagler said he expects staff to return with finalized recommendations when county and state budgets are final and proposed a May timeline for revised budget review.