State mentor warns Upshur County Schools face $3 million fund drop, urges levy planning

Board President called a special meeting of the Upshur County Board of Education to hear financial briefings and planning options, including the possible use of an excess levy to shore up local revenue.

Jeffrey Davis, a state mentor from Tyler County who is assisting Upshur County with financial statements and reporting, told the board the district’s fund-basis ending balance fell about $3 million from FY24 to FY25, to $7.9 million, and that an increase in entity-wide liabilities tied to compensated absences added approximately $1.9 million in obligations. “That increased your liability of about $1,900,000 for here in Upshur County,” Davis said.

Davis said the district’s FY24 audit received a disclaimed/qualified opinion in part because the district had not fully implemented GASB 96 (subscription-based software accounting) and GASB 87 (leases). He warned those accounting changes and lingering audit findings — especially personnel-file documentation and payroll records — complicate the district’s fiscal position and public messaging.

Why it matters: Losses in local levy revenue and falling enrollment directly reduce state aid the district receives. Davis said the district lost about 184 students in the most recent counts, a decline that he estimated will reduce state aid by about $679,000 for the FY27 budget cycle. “Enrollment drives state aid,” he said, adding that fewer students also translate into fewer funded positions.

Board members asked how enrollment declines translate to staffing. Members and Davis discussed pupil-teacher ratios in the 20–25 range and estimated the 184-student drop could lead to roughly five to six position reductions, though Davis and others cautioned the losses are spread across grade levels and not always reducible to a single classroom.

The board also reviewed budget assumptions and carryover. Davis and members noted the FY27 budget used roughly $1.2 million in carryover; if the district’s fund balance drops another $3 million, unassigned reserves would shrink substantially and risk starting a fiscal year “in the hole.” Davis urged the board to exercise caution and preserve an adequate beginning balance.

Audit findings drew sustained attention. Davis and board members said many of the state auditor’s findings relate to incomplete personnel files and payroll documentation (experience ledgers, voluntary-deduction forms and other records). Board members reported corrective actions — collecting W-4 and deduction paperwork, assembling binders and rebuilding experience ledgers — but acknowledged that audit timing (on-site testing roughly October–March) often means findings appear late in the fiscal year and are hard to correct before the next report.

On the levy question, Davis recommended a stakeholder-driven approach. Several board members said public sentiment remains negative because of past problems and that a one-item levy for maintenance or safety, with separate accounting and clear reports on levy use, might be the most politically viable option. “If you vote against the levy, you’re voting against the kid,” Davis said in urging support; board members responded that rebuilding trust and using positive academic achievements as a public 'hook' will be essential to any campaign.

What’s next: Board members agreed to continue corrective actions on audit findings, discuss levy language with stakeholders, and reconvene to plan next steps. The board noted scheduled meetings — a regular meeting on June 9 at 6:00 p.m. and the organizational meeting on July 6 — and adjourned at 1:55 p.m.