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.”