Robbinsville – Earlier this year, an auditor advised that Graham County School District has been operating “paycheck to paycheck” and needed an additional $100,000 a year contribution from the county to maintain basic operations.
It turns out that estimate was optimistic.
Graham County commissioners are going to be asked to dig deeper into their pockets by Graham County Schools – to the tune of $500,000.
The Board of Education met Tuesday morning and learned just how dire the school district’s finances are in a report by Finance Officer Lester Greene.
Greene advised the board that the $1 million the county gets each year from the county would not be sufficient this year – or next.
Costs are rising for electricity, cafeteria food, salaries; just about everything.
For example, construction work at Robbinsville Middle School – which started at $230 a square foot – has nearly doubled. A case of garbage bags that recently cost $29 is now $105. The 5.5 ounce serving cups used in the cafeteria that had been selling for $39 a case is now $160 a case – if you can find it.
The board approved a $22.88 million budget for fiscal year 2021-22 in January, including an annual payroll of $8 million. It is due to submit a spending plan to the county the middle of May to show how it is spending the county’s $1 million contribution.
The board plans to ask for $1.5 million for the coming fiscal year, and it appears likely that this will be an ongoing annual request.
In some ways, it may seem that Graham County Schools is flush with cash. Teachers just got raises, the district is spending $6,000 for drones to start a new program, whole grades are going on field trips to far flung places like Ocracoke Island – they’re even giving out free breakfast and lunch to all students.
Some of that has to do with COVID-19 relief funds with very specific ways it can be used, with an end to that funding in sight. Some of it is state funding, which comes with restrictions and complications – like teacher raises that don’t include corresponding contributions to the retirement plan that still have to be made by the local school district.
As for free lunches and breakfasts, funding for the coming school year is not guaranteed, and the school board authorized an increase of about 55 cents for lunch – about $80 a year for the average family – to cover rising expenses.
Much of that money does nothing for operating costs such as utilities, maintenance, and replacement of worn out equipment and facilities, from 50-year-old toilets in the restrooms to dilapidating cafeteria tables to playground equipment that may no longer be safe.
“We’ve patched together all that we can,” Graham County Schools Superintendent Angie Knight said.
Normally during hard times local government will dip into their fund balances, but according to Greene, Graham County Schools has a fund balance of 1 percent of its annual operating budget — essentially nothing.
By comparison, Greene estimated Graham County government has a fund balance of 46 percent, or around $15 million.
“It’s pretty healthy,” Greene said. “They’ve done a good job turning their finances around.”
“We will have to have a conversation with the county,” Greene told the school board. “It’s just not enough.”
Knight agreed, saying the district “does not have enough to cover the bare necessities.”
The school district must submit its spending plan to the county by May 15. The county, in turn, must have its annual budget turned in by June 30. There was no time to delay.
“We’re at the point where there is no choice,” Knight said.
Board Chairman Rodney Nelson proposed asking for an extra million dollars.
Board member Jonathan Allison agreed, while other board members fearing rejection by their county colleagues suggested lower amounts.
“More than likely we’ll have to come back next year for more,” said board member Clark Carringer.