The Guilford County Board of Commissioners and members of the Guilford County Board of Education are going to hold a joint meeting on Wednesday, April 30 and boy is there a lot to talk about.

 The Joint Capital/Facilities Committee – a body consisting of the Guilford County Board of Commissioners and the Guilford County Board of Education – has scheduled the April 30 meeting for 4 p.m. in the John McAdoo Conference Room on the third floor of the former Truist Bank Building at 201 W. Market St. in Greensboro.

That building is now county-owned.

The main purpose of the committee is to oversee the expenditure of the $2 billion in school construction money being raised by two bond referendums in recent years, which, it turns out, thanks to inflation, will not go as far as was hoped when the bonds were approved by voters.

Another issue that’s on the front burner of both county leaders and school leaders is how much money Guilford County government should give the school system in the coming fiscal 2025-2026 county budget, which will be adopted by the Board of Commissioners in June.

Guilford County already gives about 45 percent of its budget to Guilford County Schools each year – and this is going to be a very difficult budget for the commissioners to craft because the current board has spent itself into a hole, and school officials are asking for a great deal of additional money this year.

The Board of Commissioners has been remarkably generous to the school system in recent years but the county can’t give additional money it doesn’t have, and the commissioners have already committed to a budget with no tax increase this year.

The latest budget proposed by Guilford County Schools totals nearly $1 billion for the 2025-2026 school year, and the school board is asking Guilford County government for an additional $44 million this coming fiscal year. That’s money the county simply doesn’t have to spare.  Raising that money would require the board to raise the current tax rate by about 7 cents per $100 of assessed property value.

Much of that $44 million would go to pay increases for school teachers and other staff.

“We are a people-driven organization, and without them, we are without purpose or product,” Superintendent Whitney Oakley stated while presenting her budget recommendation for the 2025-2026 school year.

The proposed new school budget, which would be funded by county, state and federal dollars, asks those funding sources for a total of over  $947 million in order to pay for the following:

  • A $10 million increase in local teacher supplements to help recruit and retain high-quality teachers.
  • $15.3 million allocated to increase the pay scale for non-certified employees.
  • $3 million for enhanced security measures, including middle and high school scanners, emergency radios and security cameras.
  • Capital investments of $10.8 million including $7.9 million for “emergency” HVAC replacements, $952,000 for building repairs, $1.4 million for equipment and vehicles and $504,000 for roof repairs.

When the new school budget proposal was announced and the request for $44 million in new funding was made to the Board of Commissioners, Guilford County Schools’ superintendent made her case.

“The purpose of our work as a public school district is to invest in people. Educating our students is in fact an investment in their future and the future of Guilford County,” Oakley said. “For far too long we have struggled behind the rest of our competitors, both in the public and private sectors, to pay our employees fairly and appropriately for the work that they do. And yet, as one of the largest employers in Guilford County, a pay increase for our employees would be felt in every other sector of the local economy.”

Several county commissioners, including Chairman of the Board Skip Alston, have already said privately and publicly that Guilford County Schools will not get anywhere near the additional $44 million requested, given the host of other obligations the county has right now.

However, the current board is super-friendly to the schools – the board contains two former school board members, a teacher, a school volunteer and a chairman who always considers education a top priority. So, the board will do what it can for the schools, but that may not be a whole lot this year given the tight budget hole the commissioners have spent themselves into by being immensely generous to the schools, county departments, and county employees in recent years.

It’s important to remember that the $44 million is just the additional money for school operations (not including construction cost paid for by the bond funds.) In all, the total request of the schools to the county for operating costs comes to $314 million for the period that runs from July 1, 2025, to June 30, 2026.

The commissioners are now taking public input and holding a series of budget workshops to try to determine how much money to give the schools for operations this year.

In May, County Manager Mike Halford will bring the commissioners his recommended budget, and the Board of Commissioners will hold a public hearing on the manager’s proposal on Thursday, June 5.

The commissioners are scheduled to adopt a fiscal 2025-2026 county budget on Thursday, June 18.

These days, in addition to funding school operations, the Board of Commissioners must worry about that giant wall of school bond debt that it will be paying off over the next two decades.

Having $2 billion for school construction sounds like it would go a pretty long way; however, many formerly planned projects are being cut because that money, in the current economy, is drying up faster than people anticipated.

 In fact, Chairman Alston told the Rhino Times recently that there would likely be a need for another large school bond referendum – of perhaps another billion dollars – within the next several years, in order to make all those promised projects a reality.

Alstom also said that in 2026 the commissioners would ask county voters to approve a quarter-cent sales tax increase to help get more money to the school system.

The debt for the school bonds is starting to come due in a big way and, in addition to giving hundreds of millions of school operations each year, the board is also having to stash away more than $50 million every year to commit to paying off that looming massive school bond debt that’s being used to build new schools and other capital projects.

The Federal Reserve and many other financial experts are predicting increasing inflation brought on by newly implemented federal tariffs, which will mean construction materials will cost more.

As if that’s not bad enough, current interest rates have been creeping up, which means that Guilford County is going to end up paying hundreds of millions more in interest on the bonds than the county anticipated when the bonds passed. At the time county voters approved the two bond referendums, interest rates were at near historic lows.

The joint April 30 meeting of commissioners and school board members is open to the public and can also be viewed via Zoom platform on a computer, tablet or smartphone by visiting  https://www.zoomgov.com/j/1617398309, completing the webinar registration, selecting the option to join from the confirmation email prior to the start of the meeting and choosing one of the audio options.