Board debates time-sensitive county funding formula; vote scheduled next week

The Asheville City Schools board spent the bulk of its Feb. 6 work session reviewing a revised county funding agreement that board leadership will bring back as an action item next week.

Chair Sarah said the redlined document incorporated attorney feedback and clarified several points raised at prior meetings, including a statutory citation for ad valorem taxes, clearer language for measuring enrollment and an explanation that the 37.76% figure is applied to gross revenue. "The 37.76% is applied to the gross revenue," Sarah said while walking board members through paragraph 4 of the draft.

Board members asked for legal and practical clarifications. Anna (staff) and the board attorney were noted as having reviewed parts of the contracts; board attorney review is required for contracts above specified thresholds, Anna said. Board members also noted an existing statute that limits lawsuits over budget processes: the draft removed a clause suggesting a right to sue after county counsel raised concerns.

Concerns centered on two themes. Some members, including Pepe, said the agreement could lock in a baseline and reduce the county commissioners'incentive to advocate for additional state funding. "I'm worried that if Buncombe County thinks this is it, then their duty to advocate at the state level may be blunted," Pepe said. Others, including Rebecca and George, argued the formula could improve predictability and yield additional revenue immediately; they framed the three-year term as aspirational with an annual December 31 review to give newly seated boards an opportunity to revisit the agreement.

Heidi (finance) told the board that based on the county's current projections the proposed formula would produce an increase in unrestricted revenue relative to prior estimates, but she recommended close monitoring once the county issues its official number. Board members asked for follow-up: confirmation of the underlying county projections, whether county commissioners would accept the agreement as an "ending point" for advocacy and whether the board could still present an aspirational budget to the county and other funders.

Members discussed process and timing: the board agreed the funding formula would not go on the consent agenda and would be a separate action item next week; Chair Sarah said she would contact Buncombe County's board chair and staff would circulate clarifying materials in advance. Several board members asked for more conversations with Heidi and staff before the vote; Patty asked for a one-on-one with Heidi to better understand financial implications.

No formal vote on the funding formula occurred at the Feb. 6 meeting; the item is scheduled for a vote at the board's next meeting. The board will receive, per members' requests, a clearer write-up of the county's revenue projections and a summary of any legal limits that affect enforcement or dispute resolution under the draft agreement.