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Transylvania County Schools requests $18.1 million for FY2027 as enrollment decline threatens state funding
Summary
Superintendent Dr. Lisa Fletcher asked the county for an $18,056,560 FY2027 request combining operational and capital needs, citing a projected two-year enrollment decline of 161 students that reduces state funding and forces local subsidy of exceptional children services above statutory caps.
Dr. Lisa Fletcher, Superintendent of Transylvania County Schools, presented the school system's FY2027 budget request to the Transylvania County Board of Commissioners on April 27, asking the county to consider funding operational shortfalls and capital needs driven by declining state funding tied to enrollment.
Dr. Fletcher explained how North Carolina's Average Daily Membership (ADM) formula reduces state funding when enrollment declines, and noted a projected two-year loss of 161 students (59 lost in FY2025 and a projected 102 loss for FY2027) that the district estimated would result in a $1,368,000 minimum two-year state funding reduction under current formulas. "These are not discretionary programs — they are obligations," Dr. Fletcher said, emphasizing that some programs (notably Exceptional Children services) exceed state caps and must be covered with local dollars.
The school system presented three funding options; the full request (Option C) totaled $18,056,560 and included $1,456,521 in furniture, fixtures and equipment and $463,577 in capital outlay requests such as technology replacements, dish machine replacements, a generator for child nutrition and plant operations, and ongoing operational maintenance. The district also cited recurring costs like the Centegix CrisisAlert safety system, accessible activity buses, and bus safety equipment.
Dr. Fletcher and staff highlighted specific pressures: Exceptional Children services serve 19% of students, exceeding the statutory 13% cap and resulting in a local subsidy (FY25 local subsidy reported at $568,299); the Child Nutrition program has required local subsidies in recent years (FY24 $442,631; FY25 $350,882; FY26 estimate ~$350,000); and the district is pursuing recurring technology and maintenance investments.
County staff and commissioners asked about tax impacts if the county funded the full request; the County Manager said funding Option C would require more than a one-cent property tax increase and potentially closer to two cents depending on the State's final decisions on salary increases and other items. The Board discussed the recurring nature of the requests, the relationship of capital funding to sales tax receipts, and the role of attrition to manage staff reductions without layoffs.
The Board thanked Dr. Fletcher for the presentation and asked staff to incorporate the school's requests into the county budget process for further review and decision-making during upcoming budget workshops.
