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Orange County School Board adopts FY2027 local operating budget for county review amid state funding uncertainty
Summary
The board approved a $1.9 million continuation budget (including a 4% salary assumption) for FY2027 and a set of expansion requests totaling about $3.9 million to be forwarded to county commissioners for funding consideration; the district projects a 174‑student enrollment decline and anticipates at least $1.6 million in reduced state allotments.
The Orange County Board of Education voted April 20 to adopt its FY2027 local operating budget for submission to the Orange County Board of Commissioners, advancing a continuation request that the district said totals $1.9 million and includes a planned 4% salary increase and associated benefit costs.
During a public hearing, district staff told the board that projected enrollment for FY2027 is 7,751, a decline of 174 students, and that the district is already preparing for a roughly $1.6 million reduction in state allotments. The presenter said the continuation request reflects anticipated benefit and retirement cost increases and a 4% non-personnel inflation allowance.
The presentation also identified expansion initiatives—described as supplemental requests to the county—totaling about $3.9 million and equating to roughly $54 per pupil. Among those requests were increased certified teacher supplements (3% for a third year), higher classified supplements for the lowest band of classified staff, and a proposed increase in bus driver hourly pay to match neighboring Chapel Hill–Carrboro Schools.
Board members pressed staff on year-to-date spending levels and the school nutrition fund. Staff said conservative spending earlier in the year was intentional to protect positions against unknown state funding, that some large purchases remain outstanding (for example, math materials), and that weather-related school closures reduced meal reimbursements and contributed to a temporary nutrition fund shortfall.
District staff reported a local fund balance around $5.5 million but noted that local payroll exceeds $2 million per month and that fund balance alone would not sustain operations through an extended emergency. Following discussion and committee review, the board adopted the FY2027 local operating budget for county consideration by voice vote.
What’s next: The adopted local budget will be presented to the county manager and commissioners; the county manager’s recommendation is due May 5, and the board urged public engagement at upcoming county budget hearings.
