Buncombe County board approves new K–12 operating funding formula, sets fixed 37.76% allocation of property and sales tax base
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Summary
After presentations from both school systems, the county approved a written K–12 operating funding agreement that fixes school operating support at 37.76% of combined property- and sales-tax base (split ~85/15 by ADM), restoring pre-Helene levels plus 1.9% growth; agreement includes renewal dates and an emergency definition.
Buncombe County commissioners voted on Jan. 6 to approve a new written agreement that allocates local current operating funds for K–12 schools as a fixed percentage (37.76%) of two major county revenue sources (property tax and designated sales tax).
Budget Director John Hudson told the board the formula uses a look-back at the 12 months of actuals (March–February) and would be recalculated each year to provide predictability. "Working in concert with our school partners, we have agreed on a percentage of 37.76% of these 2 revenue sources," Hudson said. Staff said the percentage restores pre-Helene funding levels and adds 1.9% growth based on revenue change from FY25 to FY26.
Hudson and county staff emphasized that the allocation covers local current expense for operating costs only; capital funding remains governed by statute. The formula's dollar value will vary with tax base growth, and the distribution between Buncombe County Schools and Asheville City Schools will follow average daily membership (roughly an 85/15 split).
Both Buncombe County Schools and Asheville City Schools reviewed the draft agreement. Buncombe County Schools Superintendent Dr. Rob Jackson praised the collaborative process and thanked county staff for involvement. Dr. Maggie Fuhrman of Asheville City Schools (also present) echoed appreciation for collaboration and noted the predictability the formula aims to provide for school budgeting.
Commissioners asked clarifying questions about application timing and whether the 37.76% is a percentage floor or a year-to-year calculation based on actuals; staff answered that the percentage is fixed for the allocation method and that staff will compute the specific dollar amount each year based on the prior 12 months' actuals. Commissioners and school leaders emphasized that the formula does not remove either party’s responsibility to continue advocacy for full state K–12 funding.
A motion to adopt the funding agreement carried unanimously. County staff said final legal language specifying which sales tax is designated, renewal dates and emergency definitions is complete and that Buncombe County Schools placed the item on their agenda; Asheville City Schools planned to consider the agreement at an upcoming February meeting.
The county noted the definition of "emergency" in the agreement covers urgent events that threaten financial obligations or pose immediate health and safety concerns and that both parties agreed language for renewal and emergency triggers.
