McDowell County Schools previews 2025–26 budget as student enrollment drops
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Summary
CFO and staff told the school board the district expects 93 fewer funded students for 2025–26, prompting preliminary budget assumptions including a 3% salary and 5% benefit planning scenario, use of fund balance, and requests to the county for additional support.
The McDowell County Schools board on Monday heard a preliminary finance update that flagged a projected drop of 93 funded students for the 2025–26 year and its budget implications.
Chief financial staff reported the district is transitioning banking services to First Bank and that, at roughly 67% through the fiscal year, revenues and expenditures are tracking as expected. The finance presentation stressed that salaries and benefits account for roughly 81%–85% of the district’s expenditures and therefore drive most budgetary pressure.
Budget planners said assumptions for 2025–26 include a 3% salary increase and a 5% increase in benefits. The estimated state funding loss tied to 93 fewer funded students is about $393,000. To balance the current year’s budget, staff said the district planned to use $500,000 from fund balance. The presentation also identified five positions to eliminate through attrition, representing about $375,000 in savings, and indicated the district will ask the county for a 3% increase in local appropriation (approximately $308,000 by staff estimate).
Board members asked for clarification on per‑student figures and how changes in Average Daily Membership affect state allotments. Finance staff explained the state now funds on a lagged model that stabilizes revenue from year to year but will reflect the 93‑student decline in the next funding cycle.
The update was presented as preliminary; staff said final planning allotments and additional details would be available as the state releases mid‑March allotment figures. No formal budget vote was taken Monday; the board received the presentation and asked staff to continue refining figures for future action.