Caswell County Schools request nearly $1.2M from county as fund balance falls

Staff told commissioners the Caswell County school system's FY27 request increases its total budget by about $550,000 year-over-year but asks the county for nearly $1.2 million in local dollars to cover an anticipated fund-balance shortfall.

According to the presentation, audited figures show the schools’ FY24 fund balance was $1.4 million and the FY25 ending fund balance was about $554,000 after spending down nearly $800,000 during FY25. Staff warned that the schools’ FY26 adopted budget included an appropriated fund-balance assumption that may exceed the actual FY25 ending balance and that, unless the schools curb spending, they could operate in deficit without county appropriations.

Commissioners asked whether the county can specify that local appropriations be used for teacher supplements or other line items. Staff explained that, under North Carolina law, the county appropriates schools as a lump-sum current expense unless an interlocal agreement exists; absent an interlocal agreement, the board cannot legally require the school system to spend local dollars on a specific operational item. Staff said a formal interlocal agreement would be required to bind the schools to a given allocation strategy.

Panelists discussed teacher supplements previously funded by the county and whether that funding could be treated as a one-time appropriation. Staff cautioned that reducing or removing local funding may prompt the school board to pursue the state's dispute-resolution process, and that long-term expectations of level funding can lead to pressure to maintain local appropriations.

Ending: Superintendent Stokes is expected to present the school system’s detailed FY27 request at the next meeting; commissioners were advised to prioritize capital requests and consider available lottery and repair-and-renovation funds as potential sources.