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Asheville City Schools Faces $2.8 Million Budget Shortfall

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News Summary

Asheville City Schools is dealing with a $2.8 million budget shortfall for the upcoming school year due to lower funding from Buncombe County. The district is preparing an interim budget that prioritizes avoiding cuts to student-facing positions. Although the school board plans to use a rainy-day fund, concerns about the impact of potential budget cuts on educational programs persist among the community. The district aims to explore additional funding sources to mitigate the shortfall while maintaining educational integrity amidst rising operational costs.

Asheville

Asheville City Schools (ACS) is grappling with a budget shortfall of $2.8 million as it prepares for the upcoming 2025-26 school year. The shortfall stems from a lower-than-expected funding allocation from Buncombe County, which has proposed approximately $17 million for the school district, significantly less than the $21.8 million originally requested by ACS.

On June 24, Heidi Kerns, the financial officer for ACS, presented an interim budget plan to the Asheville City Board of Education. This plan is designed to ensure that school operations can continue without pay increases until the state finalizes its budget later this summer. The urgency for financial adjustments arises as the district seeks to navigate its operations amid rising costs associated with teacher salaries and benefits.

ACS Superintendent Maggie Fehrman has confirmed that there will be no cuts to student-facing positions despite the financial constraints. The district plans to draw on its rainy-day fund, utilizing $3.5 million to alleviate part of the budget shortfall. Attrition will lead to some positions becoming vacant, but any current employee wishing to retain their job will be able to do so, as the district has indicated that these will not be classified as staff cuts.

School board chair Sarah Thornburg has noted that not refilling positions lost to attrition is a different matter than implementing direct staff cuts. Despite this, some resource reassignments may occur due to budgetary limitations. Concerns regarding the budget’s impact on school functionality were highlighted during a public hearing, where educators and students spoke about the potential effects of budget cuts on educational programs.

A kindergarten teacher presented a compelling argument for the necessity of full funding, stressing that budget reductions could jeopardize successful educational programs. Additionally, a petition has been launched advocating for fully funded schools, pushing for no cuts to either staff or programs. The community’s response reflects a growing concern about maintaining quality education in the face of financial challenges.

The financial difficulties faced by ACS extend beyond the immediate budget shortfall. The district had established a “no-cuts” budget plan prior to the current fiscal situation, inclusive of anticipated personnel and program funding allocations. However, the increasing costs associated with educational staff are pressuring the district to tap into fund balances, with an anticipated overall shortfall approaching $4 million.

To bolster its funding, the district previously approved a supplemental tax rate for city residents. This initiative aims to restore the rate from a reduced 10 cents to 12 cents to address the budget deficit more effectively. The community’s support for this measure will be crucial as the district strives to maintain its educational standards.

Looking ahead, the final budget from Buncombe County is expected to be adopted on June 3, with crucial decisions regarding potential cuts to programs anticipated by late June. ACS is actively seeking additional funding sources to mitigate the effects of the current financial shortfall while avoiding serious cuts in vital areas, such as arts, music, and central office operations. The district has previously faced significant reductions, including the loss of 11 positions, and is keen to avoid repeating such drastic measures.

As Asheville City Schools prepares to navigate these challenges, the focus remains on protecting educational integrity and finding solutions to serve the needs of students and staff amid unpredictable financial circumstances. The resolution of the funding situation will play a pivotal role in shaping the future of educational programs in the district.

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Additional Resources

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