Davie County Schools warn loss of ESSER funds, charter growth and rising personnel costs will squeeze next year’s budget

Davie County Schools officials told the school board that the district faces mounting budget pressure as federal ESSER funds wind down, charter-school payments have surged and personnel costs continue to rise.

Superintendent Clay Wallace and district finance staff presented a multi-part budget update that warned of immediate and ongoing constraints. Staff described ESSER funding as having provided a buffer that now ends and said the district must re-assess summer programs, professional development and other expense lines.

The presentation noted several specific drivers. District staff said charter-school spending has grown roughly 274% over three years, in part because virtual charter providers are now funded at the full local per-student amount (about $2,100 per student) instead of a reduced rate used previously. Staff also reported that the district’s identified exceptional‑children population (17.5%) exceeds the state funding assumption (13%), and that academically gifted identifications (about 15%) also outpace the 4% funding assumption.

Officials described the end of ESSER-specific grant support as a planning challenge the district sought to blunt. Staff referenced “ESSER 3” totals and said the district’s outlay from those funds was substantially larger in recent years; they estimated the district’s ESSER‑funded spending last year at about $3 million and described ESSER 3 overall as a large program that has sunsetted.

A classified‑salary study presented to the board found that bringing classified pay scales to the state‑recommended levels would cost about $1.5 million; implementing a 3% tiered increase for classified staff would cost roughly $600,000 and was proposed as a potential phased approach. Health‑care costs currently were described as about $674 per eligible employee per month with projections that the annual employer cost could approach $8,500 per employee next year.

Staffing and hiring data were also reviewed. In January, district data showed 35 certified vacancies reported to the state (some covered by long‑term substitutes or shared assignments), 14 certified resignations and 12 hires since that snapshot. Classified openings numbered about 36 with 21 resignations and 31 hires back as of the January report. Building administration turnover was highlighted: 25 building administrators with nine newly placed administrators this year (three new principals, six new assistant principals).

Safety and capital items were covered as context. Staff said 18 weapons‑detection systems approved in November were launched in January and the district has rolled out a campus safety app (Rave) with additional geofencing features due in upcoming weeks. The board was also reminded the district receives a fixed share of county property collections under the interlocal agreement (cited as 41.3% of the county appropriation), and staff noted one debt service payment (William Ellis Middle School) is scheduled to be paid off June 30, after which previously withheld county funds will return to the school budget.

Superintendent Wallace and finance staff urged board members to attend a scheduled budget work session in April (noted on the board calendar) for deeper review of priorities, summer program tradeoffs and options to sustain key services as ESSER funds are exhausted.

The board did not take formal budget action at the meeting; staff said more detailed line‑item proposals and choices would be presented at the April work session.