Lenoir County Manager Recommends Increasing LCPS Operational Funding to $11 Million
Lenoir County Manager Michael James recommended increasing Lenoir County Public Schools’ operational allocation to $11 million during the county commissioners’ FY 2026-27 budget workshop.
James said his original recommendation was $10.6 million, an increase of about $205,000, but conversations with Superintendent Brent Williams and board members led him to recommend a higher amount.
“I wanted to come back to the board following those conversations,” James said. “I would recommend an adjustment to that allocation to LCPS based on those conversations.”
James cited rising costs for employee insurance, school resource officers and federal funding changes.
“They’re facing the pressures that we are,” James said. “From employee insurance, they’ve had some federal funding, which is their indirect cost share.”
James said a federal change affecting the child nutrition program removed about $500,000 in revenue the school system had previously been able to use.
“The federal government used to allow you to charge indirect costs to that program to the tune of half a million dollars,” James said. “LCPS has utilized that for a number of years and then the federal government stopped allowing that to happen.”
James said school resource officer costs are also increasing because the county charges the school system the full rate for deputies serving as SROs.
“As we increase deputy pay, we charge the school system the full rate of those SRO deputies,” James said. “And so that increase is their cost burden as well.”
James said LCPS is expected to have about $1.5 million in fund balance at the end of FY26, which he described as getting low.
“I will say I think the school board and staff have done a good job managing their budget,” James said. “They do have an anticipated fund balance at $1.5 million probably at year end of 26, and that is getting low.”
James said the recommended increase is intended to help the school system avoid falling below a critical threshold.
“We don’t want to allow them to get too far below $1 million in fund balance and something happen,” James said. “The Board of Education can’t react quickly to a facilities need or some other revenue that federal government cuts out.”
The capital recommendation for LCPS remains about $1.375 million. James said that amount includes projects at Northwest Elementary.
“The capital recommendation that I gave to the board has not changed,” James said. “It was $1.375 million. It would remain at $1.375 million.”
Commissioner J. Mac Daughety questioned a listed roofing project at North Lenoir High School, saying the board had previously supported funding related to roof work.
“We were told last year they needed $400,000 to replace their ESSER funds that were clawed back and we supported that,” Daughety said. “We were told that was to finish the roofs at North Lenoir. And in this item here, it says $760,000 for the media center roof replacement. Help me understand that.”
James said he had received additional information from LCPS and would provide it to commissioners.
“Brent sent me a ton of information about 10 o’clock last night,” James said. “I’ll give all the information to the commissioners as soon as I can get through and read through everything he sent me.”
Chair Linda Rouse Sutton said the county also needs a long-range facilities plan from the school system.
“I think it’s incumbent upon this board to let them know how necessary it is for us to have that long-range facilities plan,” Sutton said. “We can’t continue to run the same amount of buildings that we have been running.”
Sutton said school leaders face difficult decisions, but the planning is necessary.
“I don’t envy them because I’ve been there,” Sutton said. “It’s a hard decision to make, but we’re at that point in time we have to.”
Commissioner Eric Rouse said the school system should examine consolidation.
“They need to take a long look at consolidating the school system,” Rouse said.
Sutton also praised LCPS for its performance.
“If you look at how our school system has performed, they have done an outstanding job,” Sutton said. “They really are doing a good job with our folks.”
James described the proposed increase as a bridge budget while county and school officials continue discussions.
“I think this is a bridge budget that we need to go ahead and increase our allocations to the schools,” James said. “But over this next year, we all sit down and go through all the capital needs, go through all the operational expenses where the revenue has been reduced, to lay everything out on the table.”
Commissioners did not take final action during the workshop. Budget decisions are expected to return before the public hearing.
Commissioners are scheduled to meet again Monday, June 1, at 9 a.m. in the Commissioner’s Chambers on the second floor of the Lenoir County Administration Building, 101 N. Queen St. in Kinston. The board is expected to continue budget discussions ahead of the June 15 meeting.
