June 15, 2025

Asheville City Schools Plagued by Budget Shortfall

News Summary

Asheville City Schools is facing a significant budget shortfall of $2.82 million for the upcoming school year. Despite ambitious funding requests exceeding $21 million, the district received only slightly more than $17 million, prompting plans to use reserves and avoid job losses. With over 80% of its budget allocated to personnel costs, the district aims to retain staff while navigating the ongoing challenges of declining state education funds and local enrollment. Discussions about sustainability and long-term solutions are crucial as the school board works to shape the future of education funding.

Asheville

Asheville City Schools (ACS) is facing a budget shortfall of $2.82 million for the 2025-26 school year but has devised a strategy to avoid job losses among its staff. Despite requesting more than $21 million, the school district received only slightly over $17 million for its operational needs in the upcoming year.

The budget situation comes in the wake of the Buncombe County Board of Commissioners approving a $433.1 million budget, which included a 2.9-cent increase in taxes aimed at generating additional revenue for local services, including education. Within the approved budget, $17.3 million is earmarked for ACS and $95.8 million allocated for Buncombe County Schools (BCS).

To manage the deficit, ACS plans to utilize $3.5 million from its rainy-day fund. Superintendent Maggie Fehrman has announced a “no reduction in force” strategy, ensuring that no current employees will be terminated. However, the district will not rehire positions lost through attrition and will reassess some existing staff roles to better align with the budgetary constraints.

Employee Retention and Budget Allocation

A large portion of the ACS budget, approximately 80%, is dedicated to personnel costs. School board members have reassured that any employee wishing to stay with the district will not lose their position for the next academic year, highlighting a commitment to workforce stability despite financial challenges.

Long-Term Financial Strategies

In addition to the new local supplemental tax, ACS will receive a $90,000 allocation from Buncombe County. Nevertheless, the anticipated revenue still leaves the district grappling with a $2.82 million deficit. The school board has yet to vote on the proposed spending resolution designed to preserve positions directly impacting students, underlining the urgency of the financial situation.

The uncertainty surrounding the state education budget, which is not expected to be finalized until later in the fall, will delay any final decisions regarding the ACS budget. This delay means that the district will have to maintain its reactive approach to budgeting for the immediate future.

The Need for Sustainable Solutions

Fehrman has pointed out that relying on the fund balance to bridge budget gaps creates an unsustainable model that could lead to further deficits if not addressed. The ACS administration is advocating for a long-term budgeting framework that could better position the district to cope with ongoing financial uncertainties in the education sector.

The implications of budget decisions made now could ripple through the district for years to come, making the current conversations not only about immediate fiscal responsibility but also about the future viability of educational programs and staffing. As Asheville City Schools navigates this challenging financial landscape, the focus remains on balancing the needs of the students with the economic realities of the district.

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Additional Resources

Author: STAFF HERE ASHEVILLE WRITER

The ASHEVILLE STAFF WRITER represents the experienced team at HEREAsheville.com, your go-to source for actionable local news and information in Asheville, Buncombe County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Asheville Bread Festival, LEAF Festival, and mountain sports tournaments at Biltmore Estate. Our coverage extends to key organizations like the Asheville Area Chamber of Commerce and Explore Asheville Convention & Visitors Bureau, plus leading businesses in hospitality and brewing that power the local economy such as the Biltmore Estate and Sierra Nevada Brewing Company. As part of the broader HERE network, including HERECharlotte.com, HEREGreensboro.com, HERERaleigh.com, and HEREOBX.com, we provide comprehensive, credible insights into North Carolina's dynamic landscape.

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