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Commissioners approve $4.09 million Article 39 transfer to schools; district leaders urge long-term capital plan
Summary
The board approved a $4,092,419 budget amendment to allow Buncombe County and Asheville City Schools to use a temporary reallocation of Article 39 sales tax revenue for operating expenses; school leaders warned this reduces funds available for capital projects and urged consideration of a bond referendum.
The Buncombe County Board of Commissioners approved a $4,092,419 budget amendment Tuesday to allocate Article 39 sales tax revenue to school operating budgets for the coming year.
John Hudson, county budget director, presented the amendment after the board heard remarks from Buncombe County Schools Superintendent Dr. Rob Jackson and Asheville City Schools Superintendent Dr. Bryan Furman. Hudson said state law (House Bill 309 / Session Law 2025-32) permits a two-year reallocation of Article 39 funds from school capital to operating expenses and that the board—arlier approved a restoration resolution should the General Assembly act.
Dr. Jackson told the board the reallocation helped Buncombe County Schools absorb a midyear county funding reduction of $3.9 million and maintain services for the start of the school year. He described the system s responsible for more than 4.5 million square feet of facilities and said identified capital needs exceed local Article 39 revenues. "The point is Article 39 sales tax is insufficient to meet the current capital needs in Buncombe County Schools," Jackson said, and he asked the commissioners to begin considering a bond referendum to address long-term capital shortfalls.
Asheville City Schools Superintendent Dr. Bryan Furman said the district likewise used the reallocated funds to maintain services and highlighted academic results the districts reported after the storm recovery period, including a graduation rate of 93.2 percent for Asheville City Schools and strong third-grade reading gains.
The board took the requested appropriation action by voice vote. Commissioners and school leaders emphasized the reallocation is temporary under state law (available July 1, 2025 through June 30, 2027) and noted the tradeoff: funds used for operations this year reduce the pool available for school capital needs such as roofing, mechanical systems, front-office security retrofits and major renovations.
Ending: The amendment passed and the schools will use the funds for operations this fiscal year. District leaders plan further outreach and feasibility work on capital needs, and school and county staff said they will continue reporting progress to the board.
