School capital commission recommends nearly $11M in cash-funded projects; county staff questions Public School Forum ranking methodology

The Buncombe County School Capital Fund Commission voted to recommend projects totaling just under $11 million for FY26 and — consistent with the commission’s recent direction — staff said they intend to fund those projects with cash rather than debt.

Matt Evans of county finance explained the commission’s role and the Article 39 dedicated half-cent sales tax that finances school capital projects. He said the commission recommended two projects for Asheville City Schools and 15 projects for Buncombe County Schools; the handout in commissioners’ packets lists 91 existing projects across the county ledger (74 associated with Buncombe County Schools and 17 with Asheville City Schools).

Why it matters: County finance staff told commissioners the goal is to reduce reliance on debt so more commission dollars go directly to construction and repair rather than interest. Evans said many projects are at different stages of completion and staff will bring project ordinances to close completed projects off the books.

Peer comparisons and the Public School Forum study

Budget analyst Sam Riddle presented a peer-comparison analysis using data from the North Carolina Association of County Commissioners (NCACC) budget and tax survey and reviewed the Public School Forum of North Carolina’s local school finance study methodology.

Riddle said Buncombe ranks relatively high in per-pupil funding in several comparisons, but he also called attention to methodological assumptions in the Public School Forum study: the Forum uses an "adjusted tax base" (tax base divided by the sales assessment ratio) to equalize counties, and applies a statewide average effective tax rate when calculating an expected revenue figure. For Buncombe — which had a recently updated tax base — those adjustments, Riddle said, effectively overstate available levy and lead to a higher expected revenue estimate than what county books recorded in 2023.

He summarized the effect in the Forum’s calculation: using the study’s adjusted figures, Buncombe’s implied property-tax revenue for 2023 would be about $318.4 million, while the county’s actual budgeted property-tax revenue for 2023 was about $240 million — a difference Riddle attributed to the Forum’s assumptions rather than to local practice.

School Capital specifics and next steps

- Funding source: Article 39 half-cent sales tax yields roughly $27–$28 million annually in sales-tax revenue; the School Capital Fund is accounted for in a separate fund with its own fund balance.

- Commission recommendation: Two projects for Asheville City Schools, 15 projects for Buncombe County Schools totaling just under $11 million; staff intend to fund the recommended FY26 projects with cash (not new debt).

- Process: Staff will bring project closure ordinances for completed projects and present the commission’s FY26 recommendations in the county’s recommended budget documents.

Quotes

"The School Capital Fund Commission is an advisory body made up of 5 members who make recommendations to you all relating to school capital projects," Matt Evans said, describing the commission’s remit and statutory background.

"The most recent study utilizes fiscal year 2023 data...the study's calculation assumes Buncombe County's tax base to be [higher than recorded]," Sam Riddle said, summarizing how the Public School Forum’s adjustments change its conclusions for Buncombe.

Ending

Commissioners asked staff to bring a project ordinance to close completed School Capital Fund projects and to include the commission recommendations in the manager’s recommended FY26 budget materials.