A Cumberland County Board of Education committee approved the superintendent’s recommended budget for the 2026–27 fiscal year, advancing a plan shaped by a growing deficit and the potential for layoffs if schools are not closed.
Superintendent Eric Bracy proposed a $670.8 million budget in February that included raises for employees, a bigger ask for money from Cumberland County, and $9 million from the district’s fund balance. The school district has said it’s operating with an annual deficit of about $5 million.
The proposed budget includes a request for a $6.5 million increase in county funding, which would bring the total county appropriation to about $110.3 million. The board’s Budget and Finance Committee approved the budget on Wednesday.
Jay Toland, associate superintendent of business operations, said the request is largely driven by rising costs and state-mandated salary increases, as well as efforts to improve employee compensation across the district.
“Just as a quick reminder, this is really focusing on the local budget,” Toland said. “We forecasted a 2% raise, which would come from the state so the additional ask—is $6.5 million from the county.”
Toland said the additional $6.5 million in county funding would provide:
- About $500,000 to cover rising utility costs
- Approximately $390,000 for increased charter school payments
- Roughly $1.5 million for employee pay increases
- $1 million to increase principal and assistant principal supplements
- About $2.5 million to raise classified staff supplements from 6% to 10%
He said those increases are intended in part to make the district more competitive in hiring to help address ongoing staffing needs.
The overall budget proposal also includes approximately $3 million for other district needs, along with the use of about $9.1 million from the district’s fund balance to maintain staffing and operations.
Board member Greg West said that reliance on savings underscores the district’s broader financial challenges.
“So we’re using savings to support our inefficiency,” West said.
Toland agreed the approach is not sustainable long term.
“That’s correct,” he said, noting that the district cannot continue relying on fund balance to cover recurring costs.
The committee also reviewed amendments to the current year’s budget, including a $17.4 million capital outlay adjustment tied to school maintenance and facility needs. The change increases total capital outlay funding from about $23.2 million to $40.6 million, reflecting additional sales tax revenue allocated for school renovations and maintenance projects.
Officials: School Closures Could Help Avoid Layoffs
District leaders said school closures are one of the few options available to address the district’s deficit, noting the district saves $500,000 to $550,000 annually for each school it closes. The school district has proposed closing some campuses, consolidating others, and building several new campuses.
West asked what would happen if the board chooses not to move forward with closures.
“If we don’t have the will to close some schools, we’re going to have to lay a lot of people off,” West said.
“That’s right,” Toland said. “That’s what it sounds like.”
Board member Mary Hales followed up, seeking clarification on whether layoffs are a likely outcome if closures do not occur.
“So that’s what you feel will happen if we don’t close some schools?” Hales asked.
“It’s what I know,” Toland said. “That’s the analysis I’ve done—here is a structural deficit that this district has, and you see it in the use of the fund balance every year.”
Toland said the impact of school closures would not be immediate, noting that the current budget is already balanced using a combination of county funding and the district’s fund balance.
“As we’ve talked about, does it affect this budget right here? Not really,” Toland said, explaining that the financial effects of closures would be felt in future years rather than the upcoming 2026–27 cycle.
He said the district is instead relying on short-term measures to maintain operations, while long-term solutions—including potential school closures—are needed to address the structural deficit.
Also on Wednesday, Ruben Reyes, associate superintendent for human resources, told board members in a separate committee meeting that the district plans to reassign all employees impacted by closures across the system based on available positions. “All staff will be relocated,” Reyes said.
While district officials said employees affected by school closures would be reassigned rather than laid off, district finance officials warned layoffs could still be necessary if the district does not make structural changes—including potential school closures—to address its ongoing deficit.
‘It’s Only Going to Get Worse’
Several board members said the district’s financial challenges will continue to grow without structural changes.
“We can’t keep operating 87 buildings with 10,000 fewer students,” board member Susan Williams said, pointing to declining enrollment and long-term sustainability concerns.
West said the district is currently relying on savings to maintain operations, a practice board members said cannot continue long term.
“We’re at a $5 million deficit annually, and it’s only going to get worse,” he said. “We can’t keep kicking that can down the road.”
While acknowledging the financial realities, some board members said concerns remain about how closure decisions have been presented to the public.
“I don’t think the problem was the closing of the schools,” board member Terra Jordan said. “I think it’s how we laid the plan out.”
Jordan said the board should revisit its approach to ensure the public has a clear understanding of the district’s direction.
“We need to lay a plan out where everybody can agree to disagree and the community can be at least somewhat cohesive on what we’re doing,” she said.
The full board is expected to vote on the budget at its regular meeting on April 14. If approved, the board’s proposal will be submitted to the Cumberland County Board of Commissioners by the state-required May 15 deadline.
