Franklin County schools flag possible $2M‑plus shortfall as board weighs aid and austerity

Franklin County Public Schools officials told the Board of Supervisors on April 21 that their nine‑month financial review shows a troubling combination of lower state support and timing delays that could leave the division with a multimillion‑dollar shortfall for fiscal 2026.

Ann, an outside consultant who led a benchmarking review, said Franklin spends more on classroom instruction per pupil than many neighbors but less on non‑instructional services and capital needs. Superintendent Kevin Sears and finance staff portrayed the situation as a liquidity and timing problem amplified by enrollment declines and recent Local Composite Index (LCI) adjustments that reduced state aid.

“We have taken a number of austerity steps — stopped locally funded professional development, limited field trips, dissolved vacated positions and postponed nonessential repairs — to reduce expenses,” Superintendent Sears said. He also listed nearly $400,000 in unplanned facility and fleet repairs this fiscal year that worsened the outlook.

County administration presented a conservative projection for the year that showed a potential revenue shortfall of roughly $1.6–2.2 million when combined with projected overspending in a few categories. County Administrator Steve Sandy said staff and school leaders have been working through different forecasting models and that numbers have tightened as invoices and federal reimbursements arrive.

Sandy told the board the county has advanced local funding to schools to cover cash flow timing, and warned that, at current cash‑flow rates, county reserves could be drawn down sharply by mid‑May without expected reimbursements.

Supervisors pushed for clearer, recurring monthly reports and for school staff to continue the hiring freeze and other cost controls. "We have to be cautious about using one‑time reserves; every dollar we draw down has a long‑term consequence," said Supervisor Tatum. County staff and school leaders said they will update the board in May with revised projections and more detail on the effect of the cost controls and revenue timing.

The county and schools agree the near‑term challenge is managing cash flow and contingency planning while preserving core classroom services: the consultant’s benchmarking showed Franklin’s student‑teacher ratios are among the smallest in the peer group, a factor that limits rapid personnel reductions without affecting class sizes.

Next steps: staff will return with updated month‑end numbers, the schools will continue immediate cost controls and the board asked both sides to prepare options if state or federal funding does not materialize on the anticipated timetable.