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Sullivan County Schools budget shows roughly $600,000 revenue shortfall as key state estimates remain unsettled
Summary
District staff told the school board the general purpose school fund faces roughly a $600,000 shortfall now and that major revenue drivers — TISA estimates, the city–county split and reappraisal-driven local projections — remain uncertain until state and finance department figures are finalized.
District staff warned the Sullivan County Schools Board of Education that the system currently faces about a $600,000 shortfall in general purpose school fund revenues and that major funding drivers remain uncertain.
Andrea, a district budget presenter, told the board, "We're $600,000 in the hole for revenues after you net everything up for what we know now." She said the number is based on March TISA estimates and that further changes are expected with April, May and the final July estimates.
Why it matters: TISA (the district's state funding estimate) and the city–county split are the largest revenue sources for the general purpose school fund. Andrea said the district also must meet a state "maintenance of effort" test that prevents total funding from dropping below last year’s per-pupil level. Because the district's average daily membership (ADM) fell, the district will be measured under the second step of that test, which uses last year’s per-pupil amount as a floor.
Board members were told local revenue projections come from the county finance department and are delayed in a reappraisal year; the finance department's local projections historically arrive in May and the final allocation is certified in July. The delay complicates early budget planning: district staff said it is better to present preliminary figures now and update them as state and county numbers arrive.
Expenditure pressures cited to the board include approved staff step increases, estimated at about $700,000 in additional cost for the district, and other line items. The district also reported a net savings of about $180,000 because of a lower legacy retirement contribution rate for some teachers. Staff flagged further uncertainties, including a projected 5% health-insurance increase (estimated as a planning assumption) and an unknown support‑staff retirement rate from TCRS that the state has not yet released.
Board process and timeline: staff said they would continue monthly TISA revenue estimates and present updated budget figures at the board retreat and the May 7 board meeting, with the final TISA allocation expected in July. Staff emphasized they would not make speculative figures and will return with updated numbers when the finance department and state reports arrive.
Clarifying details: district staff said the city–county split is calculated from a weighted average of average daily attendance (ADA) across the county’s cities; local losses in ADA (or gains elsewhere) can reduce the county split even if the district gains students in absolute terms. The $600,000 shortfall reflects current estimates and is subject to change as state and local figures are updated.
Looking ahead: staff asked the board to treat the presentation as an early status update and noted they will bring firmer numbers to the retreat and subsequent meetings so the board can finalize budget decisions in time to present to the county budget committee.
