County projects roughly $8.8 million in ad valorem growth for education; UCPS requests $27.7 million increase

Union County budget staff told the county commissioners and the Union County Public Schools (UCPS) board on April 10 that the county’s ad valorem organic-growth estimate will add roughly $8.8 million to education funds and that sales-tax growth is currently projected at about 4 percent.

That projection came as UCPS officials presented a draft local operating and capital request for fiscal 2025–26 that would increase local funding by about $27.7 million and raise the district’s combined local operating and capital ask to about $177 million.

County budget director Jason May laid out the county’s approach to revenue in a revaluation year, saying staff average four years of ad valorem growth to estimate an “organic” growth rate and then use that to calculate the revenue-neutral tax rate later in the cycle. “We add that percentage … it’s a little bit under 4%,” May said. He said the county’s ad valorem organic increase would produce about $8.8 million for education overall, with roughly $8.6 million attributable to Union County Public Schools and charter schools and about $229,000 to South Piedmont Community College. May also said the education debt fund would see “just short of $700,000” in organic growth.

Nut graf: The joint meeting was a preview, not final adoption. County and UCPS officials emphasized the numbers are still being refined; county staff said they expect to present the county manager’s recommended budget to the clerk by the end of May, hold a public hearing in June and adopt the budget later that month.

Details of the county projection and UCPS request

Jason May warned that sales-tax forecasting is volatile. “Sales tax growth is far and away the most difficult revenue stream to be able to project,” May said, adding that the department was projecting revenues 16 months ahead and that current estimates sit at about 4 percent.

On the UCPS side, Chief Financial Officer Shauna McClain provided the board with line-item highlights and assumptions behind the district’s draft request. She said UCPS is the sixth-largest district in North Carolina with 40,870 students in the 2024–25 school year, a 93.3 percent graduation rate for 2023–24, about 5,000 employees and roughly 2,500 teachers. McClain said her draft budget assumes a 5 percent increase in benefits and a 3 percent increase in salaries for planning purposes because state figures had not yet been provided.

McClain said $3.9 million would be required for the district just to maintain current operations under those assumptions. She said additional district needs total a little more than $14 million—primarily for salary and supplement increases—and that a $2,000 increase to the teacher supplement schedule would cost about $7.6 million and would move UCPS into about the No. 10 position in state supplement rankings if other districts’ supplements remain unchanged.

Operating capital requests totaled nearly $29 million in McClain’s presentation. Taken together, she said, the district’s local operating and capital request would total about $177 million—an increase of about $27.7 million over current local appropriations.

Charter-school payments and other line items

McClain projected charter-school enrollment at roughly 5,200 students and estimated next year’s charter-school payment at about $13.5 million to $14 million; she said the current year’s payment is around $13 million and the prior budget cycle was about $12 million.

The boards also discussed a one-time $8 million allocation that state Representative David Willis offered for a natatorium (swimming facility) for athletics. UCPS staff said the funds are earmarked for athletics, carry a deadline to spend by October and have not been accepted by the district. Superintendent Michael Houlihan said UCPS had raised concerns about available land, the likely construction cost (staff noted natatoriums often cost far more than $8 million) and the ongoing annual operating costs for a pool.

Programs and staffing requests

Houlihan highlighted two recurring priorities: teacher supplements and sustained tutoring for students who need extra support. He described a tutoring pilot at Parkwood Middle School with an external partner and said an interim UNC study shows the program generates a high return on investment; the finalized report is expected by the end of the month.

Houlihan also said the district is planning a five-year, phased plan to restore nursing positions the district lost after federal ESSER funds expired. He said UCPS is currently short by 10 nurses and proposes adding two nurses per year until the shortfall is addressed. Houlihan also thanked commissioners for supporting school safety initiatives that funded one School Resource Officer per school last year.

Board and commissioner responses

Several county commissioners and UCPS board members said teacher supplements are the highest shared priority. Commissioner Sods said staff should prepare contingencies and consider a phased approach to supplement increases if the full amount is not feasible at budget adoption. County Manager Bridal Matthews told both boards the county would likely have roughly $8 million in organic growth to allocate on the operating side but that a gap of about $10 million between that available growth and the district’s requested operating increases remained to be resolved.

Votes at a glance

- Motion to open the Union County Board of Education meeting and call to order: motion seconded; voice vote — passed (ayes recorded). - Motion to open the Union County Board of Commissioners meeting and call to order: motion seconded; voice vote — passed (ayes recorded). - Motion to approve the published agenda for the special-called meeting (commissioner asked to add two items; county attorney advised to stick to published notice; agenda approved): voice vote — passed (ayes recorded; no recorded nays except one speaker asked but vote reflected approval). - Motion to adjourn the Board of Education: motion seconded; voice vote — passed (ayes recorded). - Motion to adjourn the Board of County Commissioners: motion seconded; voice vote — passed (ayes recorded).

What changes next

County staff said numbers will continue to be refined during April and May: the county manager’s recommended budget is expected to be filed with the clerk before the end of May, with a public hearing and adoption planned in June. UCPS officials said they will continue to monitor state budget developments (which affect supplements and salary/benefit figures) and will update local requests accordingly.

Ending: Officials emphasized the meeting was a collaborative preview. Dr. Houlihan and county leaders thanked staff on both sides for ongoing cooperation and underscored teacher compensation, nursing coverage and tutoring as priorities to watch in the coming budget cycle.