Wake schools warn more budget cuts may be coming due to uncertainty over funding
AI-generated summary reviewed by our newsroom.
- Wake schools plan more budget cuts for 2026–27 amid federal and state funding uncertainty.
- District cut nearly $20M this year by eliminating 286 positions and trimming pay.
- Officials urge General Assembly to offset federal cuts as local reserves shrink.
Wake County school leaders are warning there will be likely be more budget cuts next year due to uncertainty about how much state and federal money will be provided for education.
School administrators said Wednesday that difficult decisions must be made in next year’s budget, including budget reductions. Details on what might be cut haven’t been revealed yet, but the district made nearly $20 million in budget reductions this year by taking steps such as eliminating 286 positions, reducing the amount of teacher pay increases and changing thermostat settings in schools.
“I’d be lying if I said this was going to be easy choices,” school board chair Tyler Swanson said during the board’s annual planning retreat.
Wednesday’s presentation is part of the development of the 2026-27 school year budget that will be presented by Superintendent Robert Taylor in March.
Inflation driving up school costs
The Wake County school system has a $2.3 billion operating budget, more than 160,000 students and more than 20,000 employees.
Next year’s budget is being developed amid a lot of uncertainty, according to school staff. Inflation is driving up the cost of health insurance, property insurance, utilities, transportation, food, classroom supplies and other items.
“Demands for funds continue — learning gaps persist, student mental health challenges, teachers and staff are seeking salary increases that reflect inflation, aging facilities need attention…..” according to the district’s presentation.
Even if nothing else changed, school board member Chris Heagarty said it will cost more just to operate schools next year. Heagarty and Swanson said starting new programs or continuing some existing ones could mean having to make cuts elsewhere.
“We’re going to have to make very hard and tough choices,” said Heagarty, who chairs the board’s budget committee.
Federal funding expected to drop
The Trump administration wants to dismantle the U.S. Department of Education in what’s been promoted as an effort to return education the states. This includes consolidating 18 federal grants and programs into a single grant that states would decide how to spend, which makes it uncertain how much money individual schools would get.
Wake has already lost $30 million in federal grants this year for teacher training and mental health services.
Trump wants to cut $3.8 billion of the $5.8 billion the federal government provides nationally for school improvement programs.
The administration also wants to transfer the Education Department’s functions to other government agencies. It’s a change that State Board of Eduction chair Eric Davis called an “unproven education strategy.”
“I would say we are very concerned about federal funding, and I think we all believe it will be less money than we have now,” said Terri Kimzey, the district’s senior director of budget services.
State income tax cuts could lower school funding
At the state level, it’s unclear what the General Assembly will do in 2026. North Carolins is the only state not to adopt a state budget this year.
A major reason for the state budget impasse is House and Senate Republicans couldn’t agree on how much to cut tax rates, The News & Observer previously reported. The state’s income tax rate is slated to drop again from 4.25% this year to 3.99% in 2026 with further reductions in the future.
Trisha Posey, the district’s finance officer, said that they’re concerned how the tax cuts will reduce the amount of revenue available for education and other services.
The state provides $1.2 billion, or 54%, of the district’s budget.
At this point, Posey said, they can’t be sure what the state and federal governments will provide.
“Creating a $2.3 billion budget is already a challenge,” Posey said. “Adding uncertainty on top of that makes it even more complex.”
County has supported schools
In contrast, the Wake County Board of Commissioners has sharply increased school funding in recent years, including providing a $40.3 million increase this year.
But school administrators warn there’s only so much of an increase in funding they can continue to request from the county.
The school district credits the local funding increase with reducing staff vacancies by improving pay. Wake now pays school bus drivers more than $20 an hour and a minimum wage of $17.75 an hour for hourly workers.
But Wake says the reduced vacancy rates means they can no longer eliminate vacancies as a way to save money.
Wake also has less money in its rainy day fund to cover expenses. Federal COVID era aid is gone. Wake may need to bail out the child nutrition program.
Will state lawmakers ‘step up’ for schools?
Swanson, the board chair, said he’s worried that they could get less local funding if a new legislative committee formed by House Speaker Destin Hall leads to reductions in the property taxes that counties can charge.
“If there’s going to be changes at the state level for property taxes, that’s going to impact Wake County Public Schools,” Swanson said.
In the midst of the uncertainty, Superintendent Robert Taylor said they need the General Assembly to step up to address the expected federal funding cuts.
“We’re at the point where the state will have to step in and close the gap,” Taylor said.
