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Schools project a fiscal shortfall; supervisors approve appropriations and consider A&E funding for three HVAC projects
Summary
School finance consultant and the superintendent told the Board that the school division may close FY26 with an approximately $1.2 million deficit; supervisors adopted a quarterly appropriation resolution to tighten oversight and discussed funding $545,000 in A&E work needed to put three major school HVAC projects (≈$9.3M) out to bid.
Franklin County’s independent school finance consultant told the Board on June 16 that, after 11 months, revenues and expenditures were both roughly 91% of budget but that updated projections showed a potential FY26 deficit of about $1.2 million.
Ann Shaver, the consultant, said the projection has improved from earlier estimates but remains negative and that federal and state timing affects the final outturn. She proposed that, if the division finishes the year with a shortfall, the county and school board consider an agreed repayment mechanism (for example, phased expenditure reductions in the next fiscal year) so the auditors will accept the year‑end results.
Superintendent Dr. Sears told the board the school system accepted additional county funding in the current budget that covered step increases for employees, local textbook shares and most of the health‑insurance increase; however, several capital and recurring needs remain unfunded. The division reported personnel reductions with estimated cost savings of roughly $2.25 million conservatively available after accounting for grant‑funded roles and required reinstatements for pre‑K. Dr. Sears said the district would not apply those savings until FY26 final numbers are confirmed.
Facilities director Mark Law presented a revised CIP and asked the board to authorize $545,000 for architecture & engineering (A&E) and bidding documents to handle HVAC replacements at Callaway, Snow Creek and Rocky Mount elementary schools. Law said the design and procurement phase will allow estimates and competitive bids for an estimated $9.3 million of construction; he recommended using previously authorized school borrowing (a remaining portion of earlier school project funds) to pay for A&E.
Board action: Supervisors adopted a FY2027 appropriation resolution that restricts school operating disbursements to quarterly appropriations by major expenditure category (instruction, administration, transportation, operations and maintenance, food service, debt service, etc.) and requires quarterly financial reports and corrective action plans when projected deficits appear. The resolution passed on roll call.
Next steps: Staff will use the consultant contract to build the school quarterly reporting and monitoring workflow. The board asked staff to return with a funding action for the A&E work next month and to continue joint meetings with the school division on budget monitoring.
