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Randolph County Schools warns of budget shortfall and a near-$93,000 jump in liability insurance premiums
Summary
Finance staff reported accounting changes spreading textbook PO costs, a likely $1 million budget shortfall in best-case projections and a sharp rise in BRIM liability insurance to roughly $485,000 (an increase of about $92–93k), prompting calls for special meetings to finalize the FY25 budget.
Finance staff told the board the district faces immediate budget planning challenges, including a large insurance premium increase and accounting changes that spread textbook purchases across several fiscal years.
Committee member (S3) explained accounting changes tied to ‘‘Step 7’’ funding and how textbook purchases are being broken into multi-year purchase orders, which affects how costs appear across fiscal periods. He said the accounting change “has kind of changed things up” but the district will still pay the books; the timing and PO breakdown complicate balancing this year’s budget.
Board finance staff also reported a steep rise in liability insurance through the state pool (BRIM). “Two years ago I was spending a little over $200,000 on all of these bills… and now this year, insurance is 485,000,” said S3, noting the increase is roughly $92,000–$93,000 from prior planning figures. Board members asked if the district can reduce that cost; S3 said because it’s a state pool there are limited options and cited failed statewide legislation as a missed mitigation.
Separately, early projections presented to the board indicated a possible $1,000,000 shortfall under best-case assumptions and warned the district could be placed on a state watch list. Finance staff requested additional meetings (May 15/16 and May 29/30) to finalize budget numbers and personnel decisions in time for publication and submission deadlines.
Why it matters: The insurance increase and accounting/timing changes meaningfully affect the district’s near-term budget picture at a moment when stimulus funds are winding down. Board and staff signaled urgency to reconcile numbers and present a balanced budget before statutory deadlines.
What’s next: Staff will produce updated spreadsheets and seek special board sessions to walk members through non-negotiable items and line-by-line options ahead of the May 30 submission deadline.
