Boone County School Board September 11

Karen Byrd was absent. All other members were in attendance.

Public Comment: Longbranch Elementary Capacity

A significant portion of public comment focused on overcrowding and capacity concerns at Longbranch Elementary School. Speakers noted the school was designed for approximately 900 students but is already serving close to 1,000 students, with hundreds of additional homes currently being built in Aberdeen, Ballyshannon, and surrounding areas that are expected to further impact enrollment.

Parents and community members described several operational challenges caused by overcrowding:

• Lunch must begin around 10:30 a.m. and continue until approximately 1:30 p.m. in order to serve all students within the existing cafeteria space.
• Resource and special-area teachers are operating from carts, traveling into classrooms rather than students being able to leave their regular classroom for those subjects.
• Students must take turns accessing the playground because of the number of students enrolled.
• Speakers noted that the playground itself was funded through parent fundraising efforts rather than district funding.
• Parents expressed concern that school resources are being stretched increasingly thin as enrollment continues to grow.

Multiple speakers requested that rezoning/redistricting for Longbranch Elementary be placed on the October board meeting agenda.

Consent Agenda: The consent agenda was approved unanimously. There were no notable or controversial items discussed as part of the consent agenda.

Old Business: There was no old business.

New Business: 2026–2027 Working Budget

The board received a presentation on the FY27 working budget, including significant increases in expenditures and changes in anticipated revenues.  The presentation could be considered a rationale for the property tax increased voted at the previous special meeting.

Increased Expenses

Salaries – $7.75 Million

The district approved an across-the-board 2.5% salary increase for all employees, along with increases to beginning salaries. The salary schedule had previously been approved by the board in May. The total estimated impact on the FY27 budget is approximately $7.75 million.

The superintendent emphasized the scale of BCPS as an employer, explaining that approximately $2 million in additional spending equates to only about a 1% salary increase across the workforce.

Salaries and related personnel costs were described as making up approximately 86% of district expenditures.

Employee Benefits – $750,000

The district increased its employer match for employee 403(b) retirement contributions from 1% to 1.5%. Following the increase, employee participation reportedly rose by approximately 5.7%. The combined effect of the higher employer match and increased participation is expected to cost approximately $750,000.

During the presentation, the superintendent also discussed state-level changes, including pension changes and what he characterized as unfunded mandates, as factors placing additional financial pressure on the district.

Diesel Fuel – $780,000

Diesel fuel costs were identified as a significant budget pressure. The district reported:

• Average diesel cost of approximately $4.85 per gallon
• Peak cost of approximately $5.18 per gallon
• August 2025 average of approximately $2.46 per gallon

Current forecasts presented to the board do not anticipate a significant decline in fuel prices.

The district also discussed HB 500, stating that changes to transportation funding resulted in the state covering approximately 81% of transportation costs, rather than what district leaders believe should be full funding.

The anticipated additional budget impact is approximately $780,000.

The superintendent described transportation costs as a major headwind for the district and argued that reduced state support contributes to pressure on local tax revenue.

Property and Casualty Insurance – $500,000

The district selected a new property and casualty insurance provider offering what administrators described as more comprehensive coverage. Few specifics were provided during the presentation regarding the additional coverage, although umbrella coverage was referenced. The anticipated budget impact is approximately $500,000.

Utilities – $500,000

The district projects approximately $500,000 in increased utility costs. Factors cited included:

• Harsh weather
• The addition to CEMS
• Opening of the new Preschool Center

The superintendent referenced previous public requests for the district to reduce administrative or operational overhead, arguing that such reductions would not come close to offsetting increases in core operational expenses such as diesel fuel, insurance, and utilities.

Curriculum – $500,000

The district anticipates approximately $500,000 in curriculum-related expenses. Expenses include state-mandated implementation of High-Quality Instructional Resources (HQIR), including:

• New mathematics curriculum
• New middle school CKLA curriculum
• Additional curriculum requirements scheduled for implementation by FY28

The superintendent again cited state mandates without corresponding funding as a significant contributor to increased district expenses.

Preschool Center – $200,000

The district continues preparations for the new Preschool Center, which is scheduled to open in Fall 2027. Staff members have already been added in preparation for the expansion. Approximately $200,000 in FY27 costs are anticipated, representing approximately two classrooms.

Overall Expense Increase

District leadership presented approximately $11 million in increased expenditures. The superintendent emphasized that the district’s increased expenses significantly exceed the amount of new revenue generated through recent tax changes and said the district will need to have “hard conversations” about closing the remaining gap.

Revenue

SEEK Formula – $1.6 Million Decrease

The district anticipates approximately $1.6 million less in SEEK funding. District leadership explained that as local property assessments and property values increase, the SEEK funding formula reduces state support and places a greater portion of school funding responsibility on local taxpayers.

The superintendent argued that adopting the compensating tax rate would result in a loss of state funding relative to local revenue needs and said that some information shared by state legislators regarding the issue has been misleading or inaccurate.

Property Tax Revenue

The board previously approved a 4% property tax revenue increase on August 31. The district anticipates a property tax collection rate of approximately 95–96%. As assessed property values continue to increase, the amount of property tax revenue restricted to the district’s building fund also increases. Approximately $2.3 million will be directed to the building fund. The district expects approximately $3.7 million in additional General Fund property tax revenue.

Net New Revenue

When combining:

• -$1.6 million from reduced SEEK funding
• +$3.7 million in additional property tax revenue

The district projects approximately $2.1 million in net new revenue. District leadership contrasted the approximately $11 million in new expenses with only approximately $2.1 million in new revenue, describing the current budget environment as extremely challenging.

The superintendent repeatedly emphasized that state funding formulas are increasingly shifting responsibility onto local taxpayers and called for changes at the state level that would allow districts to adequately compensate employees without placing as much burden on property taxpayers.

Potential Cost-Saving Measures

District leaders discussed several possible strategies for addressing the remaining budget gap, including:

• Overhauling transportation operations
• Applying savings from prior fiscal years
• Reducing General Fund capital expenditures
• Purchasing fewer school buses
• Continuing to prioritize employee salaries and wages

The superintendent stated that employee retention has improved and credited recent salary and benefit investments as contributing factors.

Upcoming Budget Calendar

The district outlined the following budget timeline:

• September 2026: Formally approve FY27 working budget
• November 2026: FY28 needs assessment
• January 2027: FY28 draft budget
• February 2027: FY28 salary and wage negotiations
• May 2027: FY28 tentative budget
• August 2027: Set FY28 tax rates
• September 2027: Formally approve FY28 working budget

FY27 Budget Vote

Following the presentation and discussion, the board unanimously approved the FY27 working budget.

Board member Karen Byrd was absent.

Longbranch Redistricting Discussion

Board member Carolyn Wolfe requested that a discussion regarding redistricting and Longbranch Elementary capacity be placed on the October board meeting agenda.

Board member Jesse Parks spoke at length about his support for elementary schools and referenced the district’s purchase of approximately $500,000 in portable classroom units.

Parks argued that residential development approved by county government is a significant contributor to enrollment and capacity pressures and said the district needs to address development-related growth with county officials.

Regarding possible redistricting, Parks expressed hesitation about moving students out of Longbranch, stating that families generally do not want to leave the school. He suggested that any movement of students should potentially occur on a voluntary basis.

Parks said the board would examine the issue but indicated that he had difficulty envisioning involuntary reassignment of students from Longbranch.

Wolfe clarified that she is not seeking a vote on redistricting in October but wants the board to begin a formal conversation about the issue.

The superintendent stated that he would work on developing a charge or framework for the redistricting discussion and process.

Adjournment

Following completion of new business and board discussion, the meeting was adjourned.