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Board approves budget amendments; finance staff warn of continued fund-balance shortfall
Summary
Board approved multiple budget amendments including $305,272 in new state funds for specified programs; finance staff said the district still expects to draw down $4.1 million in fund balance this year and urged further savings despite consolidation projections.
The Granville County Board of Education voted to approve several routine budget amendments and heard a fuller budget review that highlighted a large projected use of fund balance for this fiscal year.
Finance staff reported a state-funding amendment that increases the budget by $305,272 to allocate new state dollars for driver’s education, summer reading camp, exceptional-children services, after-school tutoring and the Book Harvest program. Other amendments included a local-fund reallocation (no net change), a capital-outlay adjustment (+$800 from insurance proceeds for a damaged South Granville sign) and a correction to a restricted fund (+$715) tied to recycling revenue.
Board members then heard a fuller budget update from the finance director noting the district planned to use about $4.1 million from fund balance in the current budget. That drawdown would leave roughly $1.7 million in fund balance — an amount the finance officer described as “critically low.” The administration said it has already identified roughly $1 million in additional savings this year but that more reductions or revenue would be needed to close the remaining gap.
Why it matters: Fund balance is a district reserve; a large drawdown can constrain flexibility for unexpected costs and put pressure on next year’s budget. The administration tied part of the gap to earlier staffing levels that have persisted since pandemic-era funding (ESSER) and to the timing of consolidations intended to reduce costs.
Votes and next steps: The board approved the budget amendments on a recorded motion. Staff will continue to refine savings tied to consolidation and present updates to the finance committee and the full board, including confirmation of planning allotments following the state Department of Public Instruction webinar.
