Franklin County Public Schools disclosed a deficit of more than $1.7 million for fiscal year 2025 during the Board of Supervisors meeting on Dec. 16, prompting pledges of cooperation between county and school officials to develop a remediation plan.

"We were recently informed that the audit of our financial records from fiscal year 2025 showed that we ended the year with a deficit of over $1,700,000," Superintendent Dr. Sears said. He explained the immediate cause as an accounting error: $2.6 million in revenue received in FY24 was recorded as recurring revenue for FY25 even though it was not recurring, masking the shortfall during closeout.

Dr. Sears said the division is still reviewing final audit details and is assembling a package of savings and corrective actions to present first to the school board and then to the county by January 2026. He said the division expects to be able to address roughly one‑third of the shortfall from existing carryover and other adjustments, but that full resolution will depend on audit confirmation and school board decisions.

Supervisors said they want to minimize harm to instruction and staff and emphasized a collaborative approach. County staff confirmed the audited financial report will be presented to the Board on Jan. 20 and reminded supervisors that a previously approved carryover allocation (~$367,000) remains on the county side pending the schools' formal request.

Board members and school officials discussed next steps including a delayed joint meeting with the school board until after the county audit presentation so both elected bodies have the final figures and a school remediation plan to review. The Board asked the school division to provide the public consequences and tradeoffs of proposed cuts so that community impacts can be understood in advance of any budget actions.