Johnston County schools propose $114 million local budget as federal ESSER funding ends and state low-wealth aid remains volatile

Johnston County Public Schools leaders on Tuesday presented Superintendent Dr. Bracey’s proposed 2025–26 budget, asking county commissioners for $114,082,706 in local current-expense funding and a separate $10.9 million capital request to cover curriculum purchases, utilities, facility needs and other costs.

The proposal comes as federal Elementary and Secondary School Emergency Relief (ESSER) funds expire and state “low-wealth” funding shows volatile swings tied to recent property revaluations. “None of these academic successes would be possible without the generous support of our board of commissioners,” Dr. Bracey said while outlining the district’s academic gains and budget priorities.

Why it matters: The district says the funding shift will force more recurring local dollars to cover salaries, contracted services and utilities. Superintendent leadership and finance staff told the school board the district expects to operate with roughly $18.5 million less in total revenue next year because federal grant dollars are dropping and capital and operating demands remain.

Key numbers and drivers - Local current-expense request: $114,082,706 (a $10,082,706 increase over the current local funding level). This is the district’s formal request to the county for operating funds. - Capital request: $10,900,000 (one-time items and planned capital projects, including HVAC work and a small safety package for bus cameras and vestibules). - Total district budget (all funds) projected to fall from about $483 million this year to about $465 million next year due primarily to federal ESSER reductions. - Fund balance: the district finished the prior year near $13 million and currently projects between $12.5 million and $14.5 million for the coming year. - Utilities: district utility costs were described as roughly $9 million this year and are expected to approach $10 million next year. - Charter pass-through: roughly 11.7% of the requested local dollars (an estimated $11.6 million) would be passed through to charter schools on a per-pupil basis under current enrollment estimates. - Enrollment: the district reported current Johnston County Public Schools enrollment of just over 37,000 students; projected county district enrollment was flat, while charter enrollment is expected to increase (the presentation projected about 4,369 charter students next year under current trends).

What officials said about funding sources and uncertainty District staff and the superintendent emphasized two funding uncertainties driving the conservative budget approach: the scheduled end of ESSER grant funding and volatility in the state “low-wealth” funding formula that depends on property revaluations. The superintendent said the district is preparing for a potential loss of anywhere from $6 million to $9 million in low-wealth funding once revaluations are fully reflected, while noting timing and exact amounts are not yet known.

Finance staff described the proposed local budget as largely “tread-water”—not funding major new recurring initiatives beyond a planned curriculum purchase and the stepped costs of opening a new school (Swift Creek Elementary). The local-share impact of a large curriculum procurement was listed as about $1.7 million in the operating request (the total curriculum purchase was described as larger but funded over multiple years).

Salaries, supplements and staffing District presenters emphasized that the largest local expense is teacher pay and supplements (local teacher pay and supplements were described as accounting for more than half of the county-funded budget items). The board heard that: - Johnston County has climbed in recent years to a higher rank for local teacher pay; staff said local supplements have increased by roughly $5,000 on average per teacher since 2020. - The district has roughly 5,000 full‑ and part‑time employees, including more than 3,000 certified staff. - About $2.2 million of the requested local increase is earmarked to cover the local portion of any state pay increases (the district applies local supplements proportionally alongside state-certified salary increases).

Officials warned that once low‑wealth funding declines, positions previously paid with that state aid will shift to being locally funded, driving up local personnel costs. The district said it shifted approximately $2.8 million in salaries to local funding in the current year after a reduction in low‑wealth aid.

ESSER expiration and contracted custodial staffing Board members questioned the shift of some custodial costs from ESSER grants to the local budget. Finance staff said the district used contracted labor (through temporary/contract staffing firms) for custodial support during the ESSER period and that about $1.2 million of contracted labor is included in the proposed local request to continue those services. Staff provided a contracted‑positions estimate of roughly 68 full‑time‑equivalent contracted custodial roles tied to that line item, and said the contracted approach was less expensive in some periods than hiring full-time employees.

Board members noted public messaging in prior years that ESSER funds would not be used to create permanent positions the district would have to sustain after grants expired; presenters said some contracted roles were temporary supports but also emphasized that many of those roles provide services the district considers necessary (for example, cleaning and building upkeep) and would need replacement if contracts ended.

Charter schools and pass-through funding The presentation reiterated that a sizable portion of local county funds flow to charter schools on a per‑pupil basis. District staff explained the county sends the charter share through the district rather than the state paying charters directly; that pass-through amount is estimated on projected charter enrollment and was shown as roughly $11.6 million in the current request.

Capital and one‑time safety requests The capital ask ($10.9 million) combines recurring facilities and fleet capital needs with a separate one‑time safety package (bus cameras, connectors, vestibules). High‑cost items in capital include continuation of an extensive HVAC replacement program and other facility repairs; staff described the capital list as largely maintenance and replacement rather than major new construction.

Board process and next steps Board members and the finance committee discussed the timeline: the district must submit its budget request to county commissioners by May 15; the board plans to consider the proposal as an action item at the May board meeting and continue detailed finance‑committee review before finalizing positions to recommend to the county.

Discussion vs. decisions This meeting was a work session and involved presentation and board discussion only; no formal motions, votes or budget approvals occurred at the session. Board members asked for more detailed line‑item breakdowns and said they will meet individually with staff or discuss in upcoming finance committee meetings before the board’s action item and submission to the county.

Ending note District leaders said the request seeks to sustain current operations, preserve teacher compensation gains made in recent years and cover contract and utility obligations that will no longer be paid from federal grants. Officials stressed the proposal is precautionary given the potential state funding swings from property revaluations and the known end of ESSER funding.