Raleigh County Schools presents $221.3M FY27 budget, warns enrollment decline will cut state aid

The budget presenter for Raleigh County Schools opened a public hearing on the proposed fiscal year 2027 budget, describing a $221.3 million spending plan and saying the document had been available for public review since May 15 with no public comments submitted.

The presenter said the district expects local revenues of $56.5 million (25.5% of revenues), state revenues of $104.3 million (47.13%), federal revenues of $18.6 million (8.43%), miscellaneous revenues of about $26 million (11.75%) and an unreserved fund balance of $15.9 million (7.19%). “The real budget need for FY27 is 6.5 million,” the presenter said, explaining that Fund 41 and Fund 51 amounts have been set aside for required 3%+ projects and that carryover will be needed to cover operations.

Why it matters: district officials said falling enrollment and policy-driven shifts to charter and scholarship programs are already reducing state aid and, when combined with inflation and higher benefit and utility costs, could force cuts to programs or staff. The presenter told the board the county has seen a net enrollment decline of 204 students for FY26 and more than 2,300 students since FY15; charter-school transfers are projected to reduce state aid by about $1.38 million for FY27.

Key budget facts and projects: the presenter reported $171.4 million in the general current fund, $9.4 million in a permanent improvement fund and $14.1 million in a capital projects fund. Salaries account for roughly 43.06% of the budget and, combined with fixed costs, total $140.6 million (63.52%). The FY27 budget itemizes major construction and renovation work: completion of Park Middle School renovation (funding set aside), a Woodrow Wilson High School renovation estimated at $27.5 million (with $12 million from the School Building Authority and $15.5 million of county carryover already set aside), HVAC and control system replacements at ACT (projected cost over $4.5 million with a $500,000 MIP award and $4 million carryover), and other upgrades including elevator replacements, roof work and playgrounds.

Staffing and cost pressures: the budget projects a reduction in professional (over-formula) positions from 80.42 to 55.8 (a drop of 24.62) while projecting an increase in service personnel over-formula positions from 81.6 to 122.91 (an increase of 41.31). The presenter said those service over-formula costs are projected at about $9.3 million. Officials also highlighted rising insurance and utility costs, noting Board of Risk liability insurance is expected to increase by approximately $650,000 (a 56% rise over FY23 levels) and utilities are projected to rise to about $4.3 million (a roughly 17% increase from prior years).

Board questions and follow-ups: board members asked whether lower Medicaid/Medicare revenues reflected fewer claims or lower reimbursement rates; the presenter attributed most of the drop to lower state reimbursement rates and changes in statewide time-study responses rather than fewer claims. When questioned about the 41 additional service positions, the presenter said those represent positions anticipated to be over what the state formula funds, based on projected enrollment declines and prior staffing projections provided earlier in the year.

Pay-equity concerns: one board member raised concerns about apparent inconsistencies in central-office salary reporting and pay tiers, saying that some non-instructional directors appear paid at instructional pay levels and that, "it looks like favoritism." The presenter and other members said the pay structure dates to an earlier implementation and referenced a prior pay-equity analysis; board members asked for the analysis and documentation to be reviewed at a future work session.

Other clarifications: the presenter said child-nutrition reimbursements are expected to increase by roughly $366,000 because of a higher participation rate and higher federal reimbursement rates, but warned that overall participation declines and rising food costs will still raise the county contribution to the program. On a question about the miscellaneous revenue line, the presenter said the category is driven largely by transfers and ledger entries that inflate that line item.

Next steps: the public hearing portion concluded with no public comments, and the board adjourned. Officials said budgeted projects and costs will continue to be monitored and that staff would follow up with requested documentation and a possible work session on pay equity and position reporting.