Smith County School Board approves transfer to cover cafeteria shortfall, 6-2

A school finance staff member told the Smith County School Board that the district has cut purchases and daily operating costs in the cafeteria program — "not purchasing as much food" and using fewer substitutes — but still faces a projected $415,000 shortfall for next year.

The staff member said the district will amend budget lines using a $1 million allocation provided earlier and increase Line 422 to $1.3 million to try to finish the fiscal year without overspending. The packet included a paper contingency budget of about $300,000 to $325,000 to cover spring overspending.

Why it matters: the cafeteria program both costs and generates revenue; the staff noted higher free-and-reduced participation brought in about $300,000 more in revenue this year but also increased service costs. The reallocation is intended to keep meal service operating while the board reviews longer-term options.

Board discussion focused on labor savings through attrition and reassignment rather than hiring replacements. "We're in the process of meeting with each manager just to kind of get a game plan for the next year," the staff member said, describing plans to shift personnel across schools to reduce salary costs.

The motion to move the previously allotted funds (the amendment to increase Line 422) was made, seconded and approved by roll call. Dr. Mack and Haynie voted no; Mr. Shoulders, Grayson, McHale, Mr. Tyler, Mr. Lewis and the chair voted yes. The motion passed.

The board also scheduled a follow-up work session to review the broader budget and options that could reduce future cafeteria pressures. The cafeteria budget item will be revisited at that work session.

Next steps: the board set a work session for further review of the overall budget and contingency plans.