Cabell County Schools treasurer says FY26 outlook improved but enrollment loss still cuts revenues

Treasurer Mr. Rotkin told the Cabell County Schools board at a January work session that the district's projected reduction in its general-fund balance has narrowed from about $7.1 million to roughly $3'$4 million, leaving a projected June 30 fund balance of about $34.09 million and keeping the district north of its 16.6% minimum reserve.

"At the beginning of the year ... we were projecting about a $7,100,000 reduction in fund balance," Mr. Rotkin said, adding that updated revenue and expenditure figures have closed much of that gap. He cautioned, however, that many figures remain estimates.

Why it matters: The update framed the starting point for FY26 budgeting. Mr. Rotkin said an enrollment decline of roughly 200 students this year accounts for an estimated $868,000 reduction in state revenue driven by the funding formula. Offsetting that, the state tax department's preliminary estimate projects a 4.2% increase in county property values next year; if those values hold when finalized in March, the district could see a small net increase in state revenue (Mr. Rotkin estimated about $60,000) and an additional $1.1 million in excess-levy collections after statutory distributions to the library and parks and rec programs.

Mr. Rotkin cautioned these figures are contingent on legislative action and final March valuations. "This is just based on current law," he said, noting the legislature's session and the governor's State of the State address will shape final numbers.

Staffing and costs: The treasurer also presented a staffing breakdown relative to the state's funding formula. The district reported being about 121 positions over the formula for professionals and 57 over on service positions in the fall report, but after additions and reclassifications the combined over-formula total has improved by approximately 115 positions compared with a year ago. Mr. Rotkin attributed much of the service-side improvement to legislative changes affecting ECAT/interventionist classifications and to local decisions made last spring.

Board members asked whether schools could choose to retain ECAT positions or convert them to interventionists; Tim, a district staff member who surveyed principals, said schools exercised local options and that one school kept a second-grade ECAT while most selected interventionists.

State actions and benefits: Mr. Rotkin reviewed a governor's office press release indicating interest in a statewide pay raise for school and other government employees but said the proposal did not include a dollar amount and remains subject to legislative change. He also said the Public Employees Insurance Agency (PEIA) premium is expected to rise around 3% next year on both the employee and employer sides, which would add costs to the local budget.

Timeline and next steps: The board was shown the district's budget calendar: proposed levy rates will appear in mid-March, final state figures are likely in late March, a second review is planned in April, a work session on the budget is scheduled for May 4, and budget adoption is targeted for May 19 to meet the Department of Education's May 30 filing deadline. Mr. Rotkin said staff will continue refining estimates as legislative activity and March valuations produce firm numbers.

The meeting concluded without any formal budget votes; the board adjourned after the update. The district will return with updated figures and a recommended levy schedule as details from the state and PEIA become available.