County Board estimates $2M deficit for next year's budget amid funding challenges

The Henderson County Board of Education meeting on May 12, 2025, focused heavily on the district's budget challenges, with officials outlining a significant shortfall that could impact educational services. The board revealed that they are facing a $2.6 million deficit to maintain current operations for the upcoming fiscal year.

During the meeting, it was noted that the county's funding for the school system has changed, with a current expense allocation of $35.03 million and a capital allocation of $1 million, down from previous years. This shift has forced the board to consider using $1.5 million from their fund balance to balance the budget, which would leave them below their target fund balance of 12%.

Board members discussed the implications of reducing the fund balance to 10%, which would allow for an additional $700,000 in funding but still leave a deficit of approximately $250,000. They emphasized that this budget request does not include cuts to staff salaries or programs, as they have identified alternative funding sources to mitigate the impact on employees.

The board is preparing to request an increase of $700,000 from county commissioners to address the budget gap, while also advocating for a capital outlay of $1.5 million to support ongoing projects. The discussions highlighted the delicate balance between maintaining educational quality and managing financial constraints, with board members expressing concern over the sustainability of relying on fund balance in future budgets.

As the board moves forward, they are committed to ensuring that any budget decisions prioritize the needs of students and staff, while navigating the complexities of funding from state and local sources. The outcome of their request to the county will be crucial in determining the district's financial health for the coming year.