BY KARISSA MILLER

Iredell-Statesville Schools officials are bracing for another challenging budget year — facing a nearly $3 million budget deficit.

During the board’s Committee of the Whole meeting on Monday, I-SS Chief Finance Officer Adam Steele outlined some budget concerns and staff outlined where the cuts would be made.

Steele explained that the district’s expected expenditures are estimated to be around $62.7 million, with a total expected revenue of $58.2 million from the county, which will leave a gap of roughly $4.5 million.

“We know we should (receive) around $1.6 million from the county, bringing our shortfall down to nearly $3 million,” he said.

Steele said I-SS will have to rely on the district’s fund balance, which serves as a savings account, to balance the budget for the third consecutive year. In 2022-2023, the district relied on $266,000 from the fund balance, a number that increased to $585,000 in 2023-2024 and $1.5 million in 2024-2025.

Salaries funded by the local budget

While the vast majority of I-SS positions are funded by the state, I-SS Superintendent Jeff James told the board that around 228 district employees’ salaries are paid with local funds. Positions funded by the county’s appropriation include some teachers, technology and maintenance staff, and a few other positions.

“State law says that local counties provide capital and building (funding) of the schools and maintenance thereof. Where we run into a quagmire is that’s about $6 to $8 million that comes out of the local budget for 100 custodians and 55 maintenance people. A large part of that budget is the upkeep of the buildings,” James explained.

While N.C. General Assembly typically approves a 3 to 4 percent increase for state employees, the cost of retirement benefits and insurance benefits are increasing.

“However, when it comes to your local payroll that ends up being about 6 percent,” James said. “So, when people say, ‘Well, you’ve got a 3 percent increase in your local budget’ … anytime we get less than 6 percent we’re going backwards because of the people we are required to have on payroll that we have to pay state wages. We can’t pay them a separate wage.” 

Cuts, reductions and savings

I-SS Deputy Superintendent Billie Berry said principals, district employees in various departments, parents and the finance explored areas where cuts could be made to the operating budget.

Due to budget shortfalls and the ending of federal pandemic relief funds, I-SS leaders have proposed reducing 12 teaching positions, which leaders emphasized will be done through attrition.

The superintendent explained that staff reductions can lead to larger class sizes, which is not ideal as it can potentially impact student learning and achievement.

According to Chief Human Resources Officer LeVar Mizelle, HR will collaborate with Student Services to evaluate staffing to “provide more equitable services throughout the district.”

Eliminating 12 teaching positions would save the district $990,000.

I_SS officials are also proposing closing the district’s daycare program for infants and consolidating daycare sites for the 2025-2026 school year.

“Of our more than 2,700 employees, only 57 employees utilize our daycares and only 22 employees are affected by this change,” Berry said.

These decisions aren’t easy as they are I-SS employees who will be negatively impacted by the change, he said.

“In looking at the cost versus the number of employees that are utilizing the program, that is our recommendation,” Berry added.

District officials are also recommending closing the I-SS Virtual Academy at the end of the current school year, which would save $521,940.

Students would still have the opportunity to receive virtual instruction through I-Academy or Virtual I-SS.

“This would reduce five teaching positions, an office support position and a part-time counselor. Every employee would still be employed by I-SS. We will place them with other positions in the district based on where they live and other considerations,” Berry said.

Administration is also recommending reductions to central office positions. Four central office positions — including a student service position, a general maintenance position, an office support position and one coordinator position — have been cut.

Additional changes in central office will save the district $660,032.

Other Cuts

• I-SS plans to charge indirect costs of $250,000 to the school nutrition program for the 2025-2026 school year.
• I-SS officials are recommending reducing the supply allotment to $70 per student, saving the district $208,000.
• The district also recommends reducing building improvement funds by 50 percent, saving the district $124,500, and reducing programs and IT software, saving the district $286,250.

Eliminating these programs will save $868,750.

In total, the district has identified $3,040,722 in savings.

“We have responded to this challenge, not reacted to it,” said board member Kevin Angell. “A lot of the decisions can activate emotions and reactions. Making data-driven decisions is the way to go.”

Angell did express disappointment to the employees who rely on I-SS daycare services.

Brian Sloan, who became visibly emotional when discussing the cuts.

“I wish the county commissioners would point out where we are wasting it at. I would like to ask them for $2.9 million,” he said.