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Henderson County Board approves FY25 budget amendments and adopts FY26 budget with 3% pay increase
Summary
The Henderson County Board approved line-item amendments to the current fiscal year budget, including transfers to cover cafeteria shortfalls, and unanimously adopted the fiscal year 2026 budget that includes a 3% pay increase for all personnel, vehicle purchases, and capital outlays funded from reserves and grants.
The Henderson County Board of Education on April 17 approved budget amendments for the current fiscal year and adopted the fiscal year 2026 budget, including a 3% across-the-board pay increase for employees and planned capital purchases.
Finance Director Megan Vineyard explained the FY25 (February 2025) amendments were primarily transfers within already-budgeted line items and grant-budgeting actions rather than new recurring funding. Vineyard said some entries were required by state guidance after the budget was adopted and that certain grants (including adult education and a state special education preschool grant) needed their full amounts budgeted in the district's accounting system.
Board members discussed a significant transfer from reserves to the cafeteria fund to cover higher-than-expected food and personnel costs. Director of Schools Danny Beacham said the cafeteria shortfall required additional money this year and emphasized that moving large sums from reserves is not sustainable year to year. Board members referenced approximately $330,000 moved from reserves to equipment line items (for prior-year-bid items invoiced in the current year) and discussed a larger total transfer into the cafeteria fund (board members discussed "not another $600,000 next year," indicating concern about recurring shortfalls).
After debate, the board voted by roll call to approve the FY25 budget amendments (seven yes votes).
On the FY26 budget, Beacham and Vineyard described flat state and federal revenue projections and a small enrollment decline. The adopted FY26 budget includes a 3% salary increase for all personnel, nearly $500,000 in increased technology and instructional software spending, purchases of three used buses (with an additional special education bus funded from special education carryover), and capital outlays from reserves for roofing, parking lot upgrades and grounds/building improvements. The board noted an approximately $250,000 estimate for the Bargainton parking lot work and said capital outlay plans amount to around $1.5 million.
Transportation discussion: staff said the plan is to purchase three used buses in the coming year as a cost-saving measure (used buses estimated at $60,000'$70,000 each versus $150,000'$160,000 for a new bus). Beacham and staff noted a strategy of purchasing approximately three buses per year for several years to refresh the fleet, and that a special education bus would be purchased from special education carryover money so it would not come from the general fund.
The FY26 budget motion was moved, seconded and approved by roll call (seven yes votes).
Board members and staff said they will monitor the cafeteria fund and expect possible additional amendments before the fiscal year end; staff cited efforts to access additional USDA revenues and other operational changes to reduce the cafeteria deficit.
