A drop in expected funding from the state has created an even more substantial shortfall in the Carter County School System’s proposed budget for the upcoming fiscal year and will require Board of Education members to meet in a special called session to approve a change to the budget.

Carter County Director of Schools Dr. Kevin Ward appeared before the Carter County Budget Committee Tuesday evening to inform the members about the decrease in funding and the system’s plan to address it.

On May 17, members of the Carter County Board of Education approved a tentative budget as they awaited the final Basic Education Program (BEP) allocation numbers from the state.

Carter County Finance Director Brad Burke told the Board during that meeting that estimated revenue for the upcoming fiscal year is $40,956,282. The expenditures for the budget are $41,200,840, which creates a revenue shortage of $244,558.

Ward told Board members at that time that the system would tap into their reserve fund balance to cover the shortage instead of asking for increased funding from the county.

The school system’s proposed budget included estimated figures regarding how much money the system would receive from the state through BEP funding. The BEP funding, which is based on the school system’s enrollment, decreased this year because the school system lost 192 students this year compared to the previous year’s student population.

The Board of Education unanimously voted to accept the budget as presented with up to $244,558 coming from the fund balance reserve.

On Tuesday, Ward informed the county’s Budget Committee that the BEP numbers were in, and came in lower than expected.

“It came in about $5,000 short of the April estimate,” Ward said.

Because the Board had approved the budget with taking up to $244,558 from the fund balance, the Board will now have to meet in a special called session to approve the budget with the new BEP funding numbers, Ward said.

“The only option we have is instead of taking $244,000 from our fund balance we will take $249,000,” Ward said. “We will not be asking for any new money.”

The special called session will be held on Thursday, June 14, at 4 p.m. The only item on the agenda will be approving the school system’s budget. Ward said following special called meeting the Board will hold its regular monthly workshop session.