BT KARISSA MILLER
The Iredell-Statesville Schools Board of Education voted unanimously Monday to approve the district’s $274 million budget for fiscal year 2025-2026.
Chief Finance Officer Adam Steele told the board last week that the district would have to use approximately $1.8 million from its fund balance to pay for services for Exceptional Children (EC) program.
Superintendent Jeff James explained that the state does not provide sufficient funding to cover the costs of the services required to serve the district’s special needs students. The shortfall comes at a time when the district has increased costs associated with salaries and benefits, maintenance supply costs, utilities and substitute teachers,
The district has eliminated numerous central office positions in recent years to free up funds to pay for student services, the superintendent said.
“There are 18 less positions in that leadership chart today. All of us do multiple jobs, and there is nowhere else to cut,” James told board members last week.
Funding Sources
The district receives the majority of its funding from local, state and federal governments.
• State: $153 million
• Iredell County: $60.5 million, including $1.8 million in fund balance
• Federal: $11.7 million
• School Nutrition: 13.5 million
• After School Care: $1.8 million
• Other Special Revenue funds: $9.4 million
• Capital Outlay: $23.7 million
• Scholarship: $35,000
TOTAL: $274 million
Compared to similar size districts, I-SS is operating on $19 million less, James said.
“We are going to have to do something to sustain an award-winning school system. We are funded in the very bottom, but are in the top academically,” James said. “Without hiring good people and having adequate funding, we won’t be able to sustain that and do what’s best for kids.”
In the future, the county might have to look at additional revenue sources. A sales tax increase earmarked for education would be an option, he said.
Steele, the CFO, shared some significant expansion items in the local budget, which is covered by funding allocated by the Iredell County Board Commissioners.
The items include:
• Mandatory raises and benefit costs: $1.8 million
• Expansion of contracted custodial contract: $136,000
• Additional local teaching positions as a result of the addition of another Restart school: $322,675
• Retirement contributions are 24.67 percent and Health Insurance is $8,500 per employee
County commissioners increased the district’s per pupil allotment from $2,284 to $2,354.
The district’s current enrollment or Average Daily Membership (ADM) is 20,207 with the state allotted ADM of 20,812.
“We will have to take into account the ADM decrease with next year’s budget,” Steele said.