BY KARISSA MILLER
The Iredell-Statesville Schools Board of Education has reviewed — but not approved — the proposed $67.5 million local current expense budget prepared by district administrators for fiscal year 2026-2027.
The funding request includes an approximately $8.9 million increase over the previous budget of $58.7 million, which represents a 15.1-percent increase.
Superintendent Jeff James said that the request was not submitted to the Iredell County Board of Commissioners as planned this month because the school failed to approve the spending plan. The board deadlocked 3-3 on a motion to approve the budget request on March 16.
Board members Doug Knight, Ronda Hoke and Cindy Haynes supported the motion to approve the spending plan. Board members Mike Kubiniec, Brian Sloan and Anita Kurn voted against it.
The superintendent said administrators will try to get the board’s approval at next months meeting.
“The law requires that we must by May,” James explained.
The Mooresville Graded School District Board of Education approved the district’s budget in early March.
The Iredell County Board of Commissioners funds the local current expense budget for both districts.
Potential Budget Cuts
If the budget request isn’t fully funded, I-SS officials said the district will have no choice except to reduce staffing.
Salaries and benefits account for around 92 percent of total expenses in the district’s budget.
“The math is simple. You cannot fix a multi-million-dollar shortfall without losing people,” James said. “We will start next year with 22 people less, resulting in recurring savings of approximately $2.8 million.”
I-SS, he said, will do its best to reduce staff through attrition.
“Principals, assistant principals, and the advisory committee will give their input on positions we could reduce,” James explained.
Proposed reductions could include:
• Administrative Roles: 3 assistant principal positions.
• School Safety: Consolidating School Resource Officers (SROs), potentially cutting seven positions at a cost of $73,000 each.
• Support Staff: Reductions across teacher assistants, custodians, maintenance, and office professionals.
I-SS Funding Gap
The district’s struggle stems from a massive disparity in statewide funding. I-SS currently ranks 98th out of 100 counties in per-pupil spending.
The state average for per pupil funding is $13,621. For I-SS, the figure is $10,469, meaning the district is spending $3,152 less per student than the state average.
With an enrollment of 21,250 students, I-SS is operating with $66.9 million less than the average North Carolina school system, James said.
The superintendent praised teachers, staff and coaches for maintaining high academic standards despite the lack of resources.
“Our teachers and staff are burnt out and tired of inadequate funding,” James said, noting that for the first time, these cuts will “directly impact our classrooms.”
Without a new funding source, James said he fears the district’s status as a top-tier educational system is in serious risk.
Exceptional Children
Chief Finance Officer Adam Steele told the board last week that rising operational costs, uncertain state funding and the continuing need for student services — particularly in the Exceptional Children (EC) program — has created ongoing budget challenges.
“Our primary focus is on directing resources toward reducing the EC funding gap while maintaining as many positions as possible despite the decline in ADM (enrollment) and the opening of two new schools,” Steele said.
The district is projecting a $4 million overage budget line item to meet federally mandated services, which includes specialized instruction, one-on-one aides and nursing care.
“You have to provide those services. There is no choice,” explained EC Director Andy Mehall. “It has to be provided day one, and it can be very expensive.”
Mehall said that the district is responsible for serving all students with disabilities in the county, including those who attend private or homeschool settings.
He told the board that the EC Department has cut costs to make things more efficient. But some services are the difference between life and death, he added.
“Nursing care is expensive — for example, just to change out feeding tubes for some of our students,” Mehall said.
Furthermore, he said that charter schools may legally exclude some high needs students. That imbalance adds additional financial pressure to the traditional public school system.
Budget Highlights
Under the proposed budget, other expansion items are:
• $1.24 million for estimated 5-percent salary raises and benefit increases.
• $469,000 for utilities, driven by a projected 10.4-percent rate hike from Duke Energy.
• $143,000 for fuel, oil and tires as diesel prices increase.
• $468,281 in “startup” costs to hire principals and bookkeepers for two new schools slated to open in early 2027.
The district’s Average Daily Membership, ADM, or enrollment figures are down by 577 students compared to last year. Since state and local funding are tied to per-pupil counts, fewer students directly translates into less revenue.
“This reduction will directly affect both state and local funding for 2026-2027,” Steele said. “Based on current indications, federal funding is expected to remain flat,” he added.
Concerns about Transparency
Board member Mike Kubiniec voiced frustration over what he described as a lack of “transparency” in the current expense budget. He said that the board is often presented with a “finished product” rather than being involved in the development of budget options.
“If I’m going to consider something, I want to see options. I don’t see options,” Kubiniec said.
Chairman Knight pushed back.
“The process is what it is,” Knight said. “I think you can look at this board and see that there’s not a lot of collaboration overall. So, it’s hard to be collaborative when the board itself isn’t collaborative.”
Looks like iredell county is last in the state and following suit with the fact that North Carolina is last in the country as far as teacher pay is concerned.
The one thing I noticed missing in the cuts is executive leadership. Quick to cut student-facing and safety positions but the ones mismanaging the funds will continue to mismanage funds.
If personnel is 92% of the budget, maybe start with principals and admin office, they seem to be a dime a dozen, always hear how hard it is to replace teachers—never difficult to replace principals and administrators.
John: Evidently you filter what you listen to and read. Dr. James has said the district will reduce 22 positions. It’s sad you are quick to blame but lack focusing on the problem — that Iredell-Statesville Schools is 98th in funding. So I guess you feel students and staff in Iredell don’t deserve to sit at the table with other districts, but should grovel for dollars.
Why are there no proposed cuts in the county administrative office. I’d say that is the best place to start, not at the School level…
Honestly, for every person cut who interacts directly with children, there should be one cut in the Central office. We seem to have a lot of “data analysis” happening in our schools. Perhaps some of these people could be cut? (Schools are not data processing centers. ) What about “Instructional Facilitators” who get big salaries but do not teach? I have honestly been shocked at the amount of “middle management” in our schools. Sadly, who will be most affected by these changes will be our students in General Education classrooms. They will have larger class sizes and less help to learn. And, our Gen Ed kids are the people who can grow up to be productive members of society should they get them Education they deserve.
Instructional facilitators get big salaries? Can you please show me where that happens? My wife is one and she is coded as a teacher…trust me her salary didn’t change from classroom to facilitator. On top of that, due to so many vacancies, she does classroom instruction more than the job she should be performing and does most of that work at home after hours now. Nice try, Rosemary.
We need an odd number of school board members. The same two sets of 3s vote together often it appears. There needs to be someone to break the ties as this is dragging our school system down. It is absolutely ridiculous the politics of this board! I am a retired teacher and my comment to all of these members would be WORK TOGETHER for the GOOD OF OUR STUDENTS and STAFF!! No wonder people don’t want their children in the public schools here. It is a HOT MESS of a school board! And before you ask, my answer emphatically is YES! Yes, l could do better! Get me on that board and see how many “friends” l don’t vote with and how much political junk l will NOT participate in. Keep your eyes fixed where they need to be ISS BOE!! Keep your eyes on the students and staff of our school system. And you had better believe this strong willed, outspoken loud mouth when l say that the budget shortfall would be addressed from admin down! I would not vote to lose one support staff nor educator!
As I have stated previously:
Dr. James must go. Captain K can be a true leader on DAY 1. K would do the job for half the salary.
Brian Sloan has proven himself to be a wonderful board member. He is bright, intellectual and a well-spoken gentleman. I can see him going far in politics.
Anita Kurn is ready to step up and lead this board. She only needs Matthew Youngblood, as it was planned, to make it happen.
Why aren’t the folks at the Iredell GOP standing up for Matthew Youngblood?
CAPTAIN KANGAROO as well as his other ignorant board members need to be removed!! All 3 of them.
Not one damn thing is going to get accomplished with these 3 individuals on the board. They must be removed! So sick of seeing and hearing this freak show EVERY MONTH! OUR KIDS DESERVE BETTER!
Start at the top. We need teachers.
New homes everywhere mean new students and should also mean new tax revenues for our schools. What’s going on here?