Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the School Budgeting topic
No spam. Unsubscribe anytime.
Commissioners weigh Harnett County Schools funding, fund‑balance options ahead of budget vote
Summary
County staff presented FY25‑26 budget numbers showing a recommended allocation below the school system's request; commissioners debated using contingency or fund balance to cover extra school funding, the effect on the county's reserve percentage and options after a pending property revaluation.
HARNETT COUNTY, N.C. — County finance staff presented recommended FY25‑26 budget figures June 2 that left Harnett County Schools' request partially unmet and prompted commissioners to debate how much contingency or fund balance to use before the board's final budget vote.
Lisa McFadden in the county finance office told commissioners the school system requested roughly $45.7 million while county staff's recommended allocation is about $37.3 million, a gap of roughly $8.4 million. The recommended budget incorporates $3.5 million the board had set aside earlier for low‑wealth replacement; full funding of the school's full request would reduce the county's estimated fund balance to about 17.14%, the finance officer said.
County Manager Trapp urged caution about tapping the fund balance without a replenishment plan. Trapp noted the board's fund‑balance policy identifies a 15% minimum and said a drop toward that level could attract scrutiny from rating agencies unless the board documents how it will restore reserves. "One percent on your fund balance in the ballpark is about a million dollars," Trapp said during the discussion, explaining the weight of even small percentage changes.
Commissioners discussed alternatives including placing additional dollars in contingency rather than finalizing recurring increases, targeting a smaller supplement to the school system now and awaiting the results of a countywide property revaluation that is underway and could materially increase tax base revenue. Several commissioners said they were reluctant to raise the tax rate immediately given the revaluation in progress; others urged using some fund balance or contingency to reduce the shortfall while preserving flexibility for the next fiscal year.
Staff suggested a path: present dollar scenarios at the next work session showing the budget impact of fully funding the schools, partially funding them, or using contingency earmarked for the schools; the board reached a consensus to have staff prepare those options and show the resulting projected fund‑balance percentages before the final vote. Commissioners also discussed directing any near‑term additions to contingency so funds would be available to the schools if needed but not become an automatic recurring appropriation unless the board decides so later.
No final appropriation beyond the recommended budget was adopted June 2; staff will return with specific dollar scenarios for the board to consider at the next meeting ahead of the June budget adoption.
