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Buncombe County Schools board hears budget update warning of larger shortfall after state salary boosts
Summary
CFO Tina Thorpe told the Buncombe County Board of Education that a recent state salary schedule increase and enrollment/allotment adjustments lift local expenditures and push the district’s revised fund-balance need to about $12.8 million, leaving limited reserves pending DPI guidance and the county’s final appropriation.
Tina Thorpe, chief financial officer for Buncombe County Schools, told the board at a special meeting June 30 that new state budget details and enrollment shifts have materially changed the district’s 2026–27 outlook.
“We went in with a 5% expectation; the state budget as released this afternoon averages about an 8% increase, with 15% for beginning teachers,” Thorpe said, describing tiered pay changes that were not built into the district’s May budget. She said the change will increase locally funded certified-salary costs by roughly $1.9 million.
Thorpe also said allotment alignment tied to average daily membership (ADM) reductions has produced a combined projected reduction of roughly 71 positions from prior projections, and that the district has modeled additional student-count adjustments for the 2026–27 allotment process.
Those changes, plus complex state “bonus” language that may not cover federally or locally funded staff, add an estimated $2.5 million exposure, Thorpe said. She warned that declines in direct certifications are also threatening the district’s eligibility under the federal Community Eligibility Provision (CEP), reducing anticipated USDA reimbursements and supplemental sales revenue.
Taken together, Thorpe said locally funded expenditures could rise from $115.0 million to about $122.0 million. That would increase the fund-balance required to balance the budget to about $12.8 million and leave an estimated remaining fund balance of roughly $4.8 million—below the board-policy stabilization target for the projected expenditure level.
“We have no other revenue source,” Thorpe said, describing sensitivity to county appropriations and the need to protect cash flow. She recommended no changes to the 2026–27 budget resolution approved May 7 until the district and the Department of Public Instruction (DPI) can reconcile allotments and the full state budget language.
Board members pressed Thorpe for details on how the state salary schedule would be applied and which positions are locally funded. Thorpe explained the district’s process of assigning higher-paid positions to state allotments where possible and leaving certain roles—transportation, custodial, clerical, maintenance, finance and HR—as locally funded when state PRC rules do not allow state funding.
Chairman Elliott said the board would consider finance committee recommendations and monitor county funding decisions that could further affect reserves. The board approved the proposed interim 2026–27 budget as presented by voice vote during the meeting.
What’s next: Thorpe said it will likely take a month or more to parse the state budget and receive DPI allotment guidance; the district plans to revisit alignment and potential budget amendments after that process is complete.
