Cumberland County Schools leaders unveiled a proposed $670.8 million budget for the 2026-27 school year that includes employee raises and a $6.5 million increase in county funding.
The recommended budget from Superintendent Eric Bracy totals $670,802,801 and includes a projected 2% salary increase for certified and classified employees, an increase in classified staff supplements from 6% to 10% of salary, and a $1 million increase in principal and assistant principal supplements. The district unveiled the budget during the Cumberland County Board of Education’s finance committee meeting on Thursday.
The district is requesting $110.2 million from Cumberland County commissioners—an increase of $6.5 million over the current year. The proposed $670.8 million budget represents an approximately 5.4% increase over the district’s current adopted 2025–26 budget of $636.5 million.
Enrollment Decline
Jay Toland, associate superintendent of business operations, reminded committee members the district is down 1,200 students compared with prior years, a decline that translates to roughly $10 million in lost state funding under North Carolina’s funding-in-arrears model.
Under the state’s funding structure, 2026-27’s allocation is based on this year’s student enrollment. Compounding that challenge, North Carolina has not finalized its state budget.
“If you ever hear anybody say the state is going to be short a billion dollars, that’s $13 million to Cumberland County Schools,” Toland said, noting the district represents roughly 1.3% of statewide public school funding.
He added that district leaders are “monitoring very closely what the state does with their revenues and their projections.”
Federal education funding for next year is expected to remain flat, Toland said.
Budget Focus on Compensation, Retention
Despite enrollment declines and state budget uncertainty, district leaders said the proposal prioritizes employee compensation and retention.
The recommended budget includes a projected 2% salary increase for certified and classified employees—such as teachers and instructional support staff—and classified employees, including custodians, bus drivers and front office personnel pending final approval of the state budget.
The increase applies to both state- and locally funded positions, though the district must cover the local portion of those costs.
“That 2% we were talking about earlier equals $1.5 million for the locally paid staff,” Toland said.
The proposal also increases classified staff supplements from 6% to 10% of salary. For example, an employee earning $30,000 annually would see their supplement increase from $1,800 to $3,000—a $1,200 increase.
In addition, the budget includes a $1 million increase in principal and assistant principal supplements and $3 million to address other operational needs across the district.
A Running Deficit
The proposal relies on $9,093,000 from the district’s fund balance—effectively its savings account—to sustain staffing and maintain operational continuity. Toland acknowledged the district continues to operate with what he described as a structural deficit.
“As we talked at the work session, we have a structural deficit,” he said. “The revenues coming in aren’t really matching the expenditures going out.”
Of the planned fund balance use, approximately $3.7 million would support staff funded through federal pandemic relief dollars that end after fiscal year 2027-28. Another $5.3 million would cover additional staffing and non-payroll expenses that would otherwise require reductions.
The district projects its total fund balance will stand at approximately $39.9 million, with about $15.8 million remaining unassigned as of June 30.
Charter School Funding Pressure
Charter school enrollment growth continues to affect district finances, with the district seeing charter enrollment in Cumberland County increase 77.2% between 2017 and 2025.
Because state and local funding follows students who enroll in charter schools, the district must transfer a proportional share of its Current Expense funding. For the fiscal year ending 2025, payments to charter schools exceeded $3.2 million.
Between 2013 and 2025, Cumberland County Schools paid more than $22.9 million in local Current Expense funds to charter schools. District officials anticipate charter payments will total approximately $4.1 million in the coming fiscal year.
In addition to enrollment-related funding shifts, the district projects a 6% increase in utility costs, or about $500,000 in additional expenses next year. Utility expenses are paid through the Current Expense fund and include electricity, water, sewer, gas, and heating systems.
Where the Money Comes From
State funding accounts for 59.4% of the district’s total revenue. The Current Expense Fund, which is supported primarily by county appropriations, represents 18.7% of the total budget.
Federal funding accounts for 6.4%, with capital outlay, enterprise funds, and grants comprising the remaining portions. The $29.7 million capital outlay fund supports buildings, land improvements, furniture, equipment, and vehicles. It can’t be used for daily operating expenses.
The enterprise fund, totaling $35.6 million, supports child nutrition services and Prime Time after-school care programs.
Where the Money Goes
Salaries and benefits represent approximately 79% of district expenditures, supporting more than 6,000 employees who serve roughly 48,800 students.
Of the total budget, 73.5% is allocated for instructional services, including classroom teachers, instructional support staff, and school-based administrators. System-wide support services, including administrative, maintenance, and custodial functions, account for 16.3%.
Board member Greg West acknowledged the size of the proposed increase in county funding and urged fellow members to be prepared to advocate for it.
“It’s a pretty stout increase,” West said. “Our role is to support you running the system. If this is what we need to do it, then that’s what we’ve got to advocate for.”
The school board will discuss the budget again on March 10, followed by the finance committee considering adoption of the budget on March 26. The full board is expected to vote April 14.
If approved, the board’s proposed budget goes to the Cumberland County Board of Commissioners on April 15. Commissioners will review the proposal in April and May before making final funding decisions.
