The Wake County school board voted 7-2 Tuesday to recommend nearly $16 million in budget adjustments to the school system, including more than $10 million in cuts and the use of $5 million in savings.

That recommendation, which also includes a $25.3 million budget increase from the county, now heads to county commissioners to consider before the next budget year begins July 1.

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The cuts represent less than 1% of the district's more than $2.2 billion operating budget. At the same time, they represent potentially several school employees whose positions would be cut.

The cuts are largely designed to help the school system pay for rising costs of existing operations, conditions expected to continue in future years. That's a common theme in school districts across North Carolina, additionally strained by flat or dropping enrollment that triggers automatic drops in state and federal funding, which is largely based on enrollment.

School board members, similar to county officials, have also raised concerns going forward about the real and potential revenue impacts of a new procedure that allows more nonprofits to avoid paying property taxes if they provide housing that meets a certain affordability threshold. They also said they were concerned about the potential impact of various proposals from state lawmakers that would limit counties' ability to raise new tax revenues on property reappraisals.

School board members said Tuesday they didn't like the budget they were recommending but felt they needed to recommend it, given the resource constraints the district and county are facing.

Board Members Christina Gordon and Cheryl Caulfield voted against the recommended budget.

Several board members said they did not want to ask the county for money funding, given that they believed the county couldn't afford that, and noted the extensive increases they've received in recent years.

"I cannot in good conscience put them in a position to be quote the bad guys," Board Member Lynn Edmonds said, referring to county commissioners. "I will accept being named a bad guy if that is what transpires, I will accept that."

Other board members called the budget season "brutal" or said it was the worst one they'd been a part of in their years as a board member.

Board Member Toshiba Rice spoke to teachers.

"If we could provide you with the money you deserve, I would be the first to make the motion," Rice said.

The recommended cuts are:

  • $1.2 million to reduce some assistant principal positions
    • $1.1 million to delay paying certain employees for extra duty work, such as supervising events
      • $124,000 to reduce extra funding for certain lower-performing schools in the state's Restart program, though the board plans to add this funding back if they receive additional funding next year
        • $440,000 to remove some instructional support specialists hired in connection with tutoring programs
          • $836,000 to remove seven vacant positions in three offices: academic advancement, chief of staff and strategic planning
            • $523,000 to eliminate several district office budget line items, including contracted services, supplies, and subscriptions
              • $811,000 to change the dental insurance plan to cover only two cleanings per year per person and give an in-network preference, down from four cleanings per year per person
                • $2.5 million from transportation, based on spending patterns
                  • $2.2 million to cut 248 months of employment for elementary literacy coaches, or about 25 10-month teachers
                    • $500,000 from instructional services
                      • $50,000 to transition to a digital-only form of the parent/student handbook

                        The proposal would also move $1 million from the utilities budget to cover the district's Community Schools program for one year and move $4 million in local savings to fund certain special education teachers for one more year. Those teachers were previously covered by a federal grant that's expiring this summer.

                        The board decided not to consider Taylor's proposal to reduce specialty teacher spending by $1.2 million, which could have reduced some course offerings at some high schools.

                        A "Community School" serves a school's broader community, including providing health and nutrition services for residents, who are often parents lacking better access to those things.

                        Literacy coaches work directly with teachers to improve literacy instruction for students. The proposed change would concentrate those teachers in schools with the highest needs for them and eliminate them from schools with the lowest needs for them. Currently, each school has one.

                        The board is also contemplating putting a $15,000 item in their budget to help meet a required grant match that would fund student success coaches at two Garner middle schools.

                        Board Member Chris Heagarty, who suggested the grant match, said the district would need to do even more going forward to leverage funding from private sources.

                        Rice agreed, noting the coming financial challenges. She urged more cooperation with private organizations.

                        "We need them at this juncture and in the years to come," Rice said.

                        Still expecting a budget increase

                        The school district's budget would still increase next year under Superintendent Robert Taylor's proposals. But it would do so without adding any services or staff. The budget would increase because of expected rising costs to pay, benefits, insurance, leases and other expenses.

                        Those expected rising costs are so high that they necessitate budget cuts to help come up with the money to pay for them. Taylor also proposed asking county commissioners to increase Wake school funding by $25.3 million, still less than the amount needed to pay for the rising costs.

                        But it's an amount Taylor landed on after discussion between his staff and county staff. It's the same number proposed by County Manager David Ellis to commissioners Monday, boosting county spending on the school system to about $768 million.

                        Facing slim additional revenues next year, Ellis is proposing a two-cent increase in property taxes, from 51.71 cents to 53.71 cents. That would generate $62.2 million in new revenue. That rate is applied to every $100 of property value. So if a person owned a home valued at $400,000, a two-cent tax increase would raise their property tax bill by $80.

                        In his letter to commissioners on Monday, Ellis repeatedly blamed state lawmakers for not spending enough on education. He noted the state is responsible by law for funding education and the county is responsible for funding facilities.

                        The county could save hundreds of millions of dollars if "the state had fulfilled its obligations and provided the school system with the funding it needed," Ellis wrote.

                        Ellis is also recommending that a $830 million bond be put before voters this November. More than $600 million of that would cover the school system's facility needs, and the rest would cover Wake Technical Community College's needs.

                        Some board members want to ask the county for more funding, citing schools' needs, but district officials have cautiously favored asking only for what the county believed it could afford.

                        Board Member Christina Gordon recalled a special education family in her district that is struggling to get answers about services and the calls for more school funding during last Friday's North Carolina Association of Educators-organized rally in downtown Raleigh.

                        "This is an urgent time," Gordon said. "We cannot wait until next budget."

                        Wake County spending on the school system has dramatically increased in recent years, faster than any other funding source for the school system.

                        That's been in part to afford long-delayed pay raises for certain employees, including instructional assistants and bus drivers. That's also been to afford more school support staff and for paying extra to teachers with master's degrees -- a figure that keeps growing and is expected to cost $15 million this year. While enrollment has stayed relatively flat, the district is also spending more to open new schools to reduce overcrowding at existing schools.

                        County and school system budgets indicate county funding for the school system has increased each year but that growth has accelerated in the past few years. County funding for the school system has risen by more than $200 million in the past five years, from $527.9 million during the 2020-21 school year to $742 million this school year.

                        Costs rising faster than revenue is a widespread challenge across North Carolina this year, and this year isn't the first time it's happened in Wake.

                        The district faced a similar situation last year, prompting several cost-cutting measures topping $18 million. At the same time, commissioners provided the district with more than $40 million in additional funds to address rising costs.

                        Once the school board approves a request to make to county commissioners, county commissioners will decide how much funding to give to the school system, likely in June. The school board would approve a final budget after that, before the start of the new fiscal year on July 1.

                        In recent years, the school board has often requested a county budget increase higher than what the superintendent recommends, or what Ellis recommends. Commissioners often approve more than what Ellis recommends.

                        Revisiting special education

                        Tuesday's vote would take place less than a month after Taylor unveiled his budget adjustments, in two parts, on April 7 and April 21. Those suggested changes came after Taylor abandoned a privately announced plan to cut from special education to save several million dollars -- a plan the school board urged against and said they would never approve of if it came to them in a budget proposal.

                        On Tuesday, during a work session, board members revisited the issue of special education, as several board members believe it needs improvements, in resources, training and approach.

                        The board's student achievement committee will explore how to improve the school system's special education programming in future meetings, and the district will present ideas of what it believes it needs to make improvements.