Schools Push for Budget Flexibility, Consistent Funding as Needs Grow

Warren County school officials are seeking greater control over how they manage their budget, arguing that the current system creates delays, limits flexibility, and makes it harder to plan for growing capital needs.

During a joint budget work session with the Board of Supervisors, School Board members outlined proposed changes to funding structure, carryover policies, and long-term capital planning—framing the discussion as part of a broader effort to bring more consistency and predictability to school finances.

At the center of the conversation was a proposed shift away from the categorical funding model, which has been in place since around fiscal year 2021, back to a lump-sum funding model.

Push for Flexibility

Under the current categorical system, school funds are divided into specific spending categories, and any transfer between those categories requires approval from both the School Board and the Board of Supervisors.

School officials said that the process can slow down even routine adjustments.

“When that happens, the item comes to the school board… we have to then send it to all of you,” School Board Chair Kristen Pence said. “That can result in a time delay of 2 to 3 plus weeks.”

Those delays can create challenges when dealing with real-time operational needs, such as spikes in fuel or utility costs.

“We still need to run our buses and heat our buildings,” she added.

School leaders said a lump-sum model would allow them to shift funds internally as needed, without exceeding their total approved budget, while still maintaining transparency through regular reporting.

The proposed framework would preserve specific categories for capital improvement projects (CIP) and textbooks, which both boards agreed should remain protected, while allowing flexibility across the rest of the operating budget.

To address concerns about oversight, school officials pointed to existing reporting practices and proposed expanding them.

Monthly financial reports, detailed check registers, and ongoing communication with county staff would continue, they said, ensuring supervisors still have visibility into how funds are being used.

Supervisors expressed general openness to the idea but made clear that accountability remains a priority, particularly given past concerns about how funds have been allocated.

Carryover Funds and Audit Delays

A second major issue discussed was the handling of year-end carryover funds, unspent money from the school operating budget that has historically been returned to the schools and used for capital projects.

In recent years, that process has stalled due to delays in completing county audits.

“We haven’t gotten it now for a few years because of the county audit situation,” Pence said.

The lack of consistent carryover funding has made it more difficult for the school system to plan and execute capital improvements, particularly smaller projects that don’t rise to the level of major county appropriations.

School officials are now proposing a formal agreement that would ensure those funds are returned annually and deposited into a dedicated School Capital Improvement Plan (CIP) Fund.

“We’re just looking to see if there can be an agreement where each year we know that those carryover funds will come back,” School Board member Melanie Salins said.

Some members argued the language in the proposed agreement should be strengthened to remove uncertainty.

“This is our money that we didn’t spend… we need to be able to count on that,” she said.

Supervisors generally agreed with the concept of returning carryover funds but raised questions about maintaining flexibility in years when the county may face competing financial pressures.

Still, several participants acknowledged that a more consistent approach could benefit both boards by reducing annual uncertainty and allowing for better long-term planning.

Capital Needs Continue to Grow

Underlying both discussions was a shared concern about the growing list of capital needs facing the school system.

Years of limited funding and deferred maintenance have left the division with significant infrastructure challenges, including aging roofs, building systems, and equipment.

“We’ve kicked this can down the road,” School Board member George Cline said.

Officials noted that delays in addressing maintenance issues often lead to higher costs over time, as smaller problems grow into larger, more expensive ones.

School leaders emphasized that having a predictable funding stream, through both carryover funds and potentially other mechanisms, would allow them to take a more proactive approach.

Rather than reacting to emergencies, they said, the goal is to build a sustainable system for ongoing maintenance and capital investment.

The discussion also touched on the scale of the challenge, with identified needs totaling millions of dollars and a growing backlog of projects.

Additional Funding Options

While not discussed during this session, materials provided to both boards included a timeline outlining a potential 1% local sales tax referendum dedicated to school capital improvements.

The timeline outlines a process that begins with enabling legislation at the state level and may lead to a local referendum as early as November 2026.

If approved by voters, such a tax would be restricted to school construction and renovation projects and could provide a dedicated funding source for long-term capital needs.

Next Steps

Both boards indicated the proposals discussed, including changes to funding structure and carryover policies, will be refined and brought back for further consideration in April.

While no formal decisions were made, the work session underscored a shared challenge: balancing flexibility, accountability, and the growing need for reliable funding to maintain school operations and facilities.

Draft Timeline for 1_ Sales Tax Referendum MOU – Lump Sum Funding (1)

MOU – Lump Sum Funding (1)

MOU Carryover Funds

Click here to watch this section of the Warren County School Board Joint Budget Work Session with the Board of Supervisors of March 18, 2026.