By Miles Layton

GATESVILLE — The Gates County Board of Commissioners voted unanimously Wednesday night to approve a supplemental emergency funding resolution, temporarily saving the New Beginnings Daycare Program from a planned shutdown.

However, the approval came with significant financial strings attached, effectively placing the Gates County Board of Education under a strict mandate of cost-cutting and fiscal accountability.

The resolution, titled “Resolution to Consider Supplemental/Emergency Funding to extend Daycare Operations at the Request of the Board of Education,” responds to the school district’s prior announcement of a “December 31, 2025 closure of the New Beginnings Daycare Program due to financial ongoing fiscal deficits and operational decisions impacting the loss of enrollment.” The resolution appears at the end of the article.

Beginning in January 2026, the county will share monthly deficits up to a cap. The resolution commits that Gates County and the Gates County School District will each contribute fifty percent (50%) of the cost to cover the monthly operating deficit, not to exceed $50,000 of County funds. More on that below.

Commissioners cited an overwhelming outpouring of parental concern as a key driver for their intervention, noting in the resolution that the board “has received significant communication from impacted parents expressing concern about the closure and lack of adequate notice.” The board also formally acknowledged the program’s crucial role, stating it “fully understands and respects the value of high-quality childcare services to support working parents, our local workforce, and family stability.”

File photo featured with this story comes from the other week when Board of Education and the County Commission met to discuss the matter of the daycare.

Please share this story near and far so folks in Gates County know what’s happening in the community.

The Staggering Deficit: $444,394 in Five Years

County Manager Scott Sauer presented a sobering financial overview of the daycare’s operation, emphasizing that the county has no legal obligation to cover the school district’s debts.

“I made an inquiry to the County Commissioners Association just to double check, should we really be stepping into the child care business,” Sauer told the board. “There really isn’t, it’s a mixed bag. There really isn’t enabling legislation for us to be running a child care program.”

Sauer then highlighted the clear language in the state’s statutes regarding the county’s responsibility.

“The School Budget Fiscal Control Act is really clear… This is not legally this governing body’s problem to fix,” Sauer stated, quoting a key clause: “Nothing in this article shall be construed to place a duty on the Board of Commissioners to fund a deficit incurred by the local school administrative unit through the failure of the unit to comply with the provisions of the state rules and regulations.”

Despite this legal distance, the five-year financial figures were stark. Sauer detailed the deficits tied to the specific “child care fund.”

“Over the last five fiscal years, we have seen an accumulated deficit of $444,000,” Sauer confirmed. This figure was also noted in the resolution, which states that an audit review shows “annual operating deficits for the Board of Education’s Child Care Fund with a combined total of $444,394.”

Sauer provided a breakdown of the daycare’s income over recent years:

• FY26 (Budgeted Revenue): $307,000
• FY25 (Revenue): $306,601
• FY24 (Revenue): $314,000
• FY23 (Highest Revenue): $343,000
• FY22 & FY21 (Revenue): Around $260,000 each

“I don’t think we’ve had an income problem,” Sauer concluded, suggesting the issue was squarely on the expense side.

Commissioners Demand Accountability and Shared Burden

Commissioners made it clear that their decision to provide assistance was a strategic move to preserve a vital community resource, not an endorsement of the school board’s past fiscal practices.

Commission Chairwoman Emily Truman stressed the program’s importance to the local economy.

“I also notice where it does state that this duty is not on us, but we do see it as an incredible resource for the county. And it is an important part of economic development,” Truman said. “NC Secretary of State (Elaine) Marshall said multiple times today that daycares are so key to being able to grow your workforce.”

However, Truman was firm on the necessity of county oversight, stating, “These are County dollars. We have County funds that are going into the Board of Education’s fund, and it has been confirmed that we are not overstepping. We have every right to have accountability for every County dollar that we put out there, and that is being fiscally responsible to citizens.”

Commissioner Nathan Berryman, who worked with Truman and the County Manager to craft the resolution, echoed this sentiment. “Unfortunately, some of the discussions that we have to have as leaders are hard discussions. It affects people, it affects budgets. And that’s why we are elected to this office, to serve the community, to make the hard decisions,” he said.

Berryman also pointed out that the financial woes extend beyond the daycare. “The daycare is a piece of the overall financial issues our schools are going through right now and some very, very hard decisions that’s got to be made by the school board so that way our school system can be come back to fiscally responsible.” He referenced a 2023 resolution where the commission provided a significant, one-time appropriation to the school system, stating the school board “pretty much burnt through that money that was given to them.”

Strict Conditions for Emergency Funding

The resolution sets a clear path for shared financial responsibility, but only after the school board takes immediate, painful cost-cutting steps.

First, the county explicitly barred the use of its funds to cover existing debt. The resolution states, “no funds approved with any budget amendment providing supplemental/emergency funding to extend daycare operations for the Gates County Board of Education shall be used to retire the $25,000 loan or future loan to the Child Care Fund.” This loan, as Sauer pointed out, was an infusion “from the general fund of the school system” to offset current deficits.

Second, the funding is contingent on staff reductions. According to the resolution, the release of county funds is conditional on the Board of Education taking “immediate cost cutting measures with staff reductions, including two part-time positions and one co-director position.”

Truman addressed the difficulty of this condition head-on. “As personal as these decisions are, as much as it hurts, those decisions have to be made,” she said. “It’s not because we want to see anyone without a job… it’s because if we don’t make that hard decision, it’s going to be detrimental to the state of our county finances.”

Beginning in January 2026, the county will share monthly deficits up to a cap. The resolution commits that “Gates County and the Gates County School District will each contribute fifty percent (50%) of the cost to cover the monthly operating deficit, not to exceed $50,000 of County funds.”

However, these payments are not automatic. They “will be distributed upon the County’s receipt of the Board of Education’s latest cashflow report, staffing levels, and number of students.”

Commissioner Forsythe Demands a “Firmer Stance”

While ultimately supporting the resolution, Commissioner Dave Forsythe expressed deep reservations about the school district’s financial habits and called for more aggressive oversight.

“This is the tip of the iceberg,” Forsythe declared. “I don’t believe in throwing good money after bad. You do want to see us trying to help the community. Day care is critical.”

Forsythe then turned his focus to the central office’s expenditures, criticizing what he viewed as excessive salaries. “They informed me they were pointing out that we have five employees at the central office that make $100,000 a year, five of them. And for us to be running a $400,000 deficit, I mean, to me it’s a lot,” he said.

He continued, “Several of those salaries, we’re talking about the salaries are so high that the county, not the state, the state says you’re only going to pay this much for that position. And some of these positions are $40,000 to $50,000 above what the state says we’ll allocate for.”

Forsythe concluded his remarks with a warning to the school board, demanding immediate action to right the ship. “I’m going to be the guy once again that says we need to start taking a much firmer stance on this. And so I’ll support this resolution, but there’s got to be a line in the sand somewhere that says come forward shows us you’re taking aggressive actions to rein in this crazy spending, and that’s the way I would reconcile the crazy spending. I would send people home.”

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Fiduciary Responsibility Takes Center Stage

Commissioner Brian Rountree summed up the commission’s consensus on its duties to the taxpayers.

“It is our fiduciary responsibility as a board to oversee taxpayer dollars,” Rountree emphasized. “If we are losing money, it’s called business practice. If you are losing money, you’re going to do certain things. You’re either going to downsize or you’re going to eliminate it.”

He noted the necessary balance between community support and fiscal prudence: “I love that they care. It brings something. It’s our fiduciary responsibility. To look out for the taxpayer’s dollars. The second is to have fiscal responsibility to run a good business. If the business doesn’t return on investment, that’s a problem. At least break even.”

Rountree stated the resolution successfully achieves this balance, affirming, “This resolution, it sets accountability in there and also gives the skin in the game and we’re not leaving them out like Commissioner Berryman said, we’re here to help.”

The resolution also formally expressed the commission’s disappointment “for the official record, its concern and disappointment in the fiscal administration by the Gates County Board of Education resulting in the School General Fund’s fund balance $108,377 for the Gates County School District on July 1, 2025, as reported by the draft audit report dated October 13, 2025.” This figure follows the county’s 2023 non-recurring appropriation of $828,000 to stabilize the General Fund.

The resolution was “adopted this 19th day of November 2025,” committing the county to short-term assistance with clear expectations for the school district to restructure the program, reduce costs, and provide monthly financial reporting to continue receiving county support.

RESOLUTION TO CONSIDER SUPPLEMENTAL/EMERGENCY FUNDING TO EXTEND DAYCARE OPERATIONS AT THE REQUEST OF THE BOARD OF EDUCATION 

WHEREAS, at November 10^th, 2025, joint meeting with the Board of Education, the Board of Commissioners learned that a decision was made for December 31, 2025, closure of the New Beginnings Daycare Program due to financial ongoing fiscal deficits and operational decisions impacting the loss of enrollment; and 

WHEREAS, the Board of Commissioners has received significant communication from impacted parents expressing concern about the closure and lack of adequate notice; and

WHEREAS, the Board of Commissioners fully understands and respects the value of high-quality childcare services to support working parents, our local workforce, and family stability; and

WHEREAS, the year-to-date financials for the Board of Education’s Child Care Fund reporting all transactions since July 1, reflect a $25,000 loan from the Gates County Schools General Fund or other source to the Child Care Fund in October 2025 to offset monthly operating deficits; and 

WHEREAS, a review of financial audits for the most recent five (5) fiscal years, FY21 through FY25 reflect annual operating deficits for the Board of Education’s Child Care Fund with a combined total of $444,394; and 

WHEREAS, according to North Carolina’s School Budget and Fiscal Control Act, NCGS 115-429 (d) nothing in this article shall be construed to place a duty on the board of commissioners to fund a deficit incurred by a local school administrative unit through failure of the unit to comply with the provisions of this Article or rules and regulations issued pursuant hereto; or to provide moneys lost through misapplication of moneys by a bonded officer, employee or agent of the local school administrative unit when the amount of the fidelity bond required by the board of education was manifestly insufficient.

THEREFORE, BE IT RESOLVED, that no funds approved with any budget amendment providing supplemental/emergency funding to extend daycare operations for the Gates County Board of Education shall be used to retire the $25,000 loan or future loan to the Child Care Fund; and understood with the condition for the release of any County funds, as mutually agreed, that the Board of Education will take immediate cost cutting measures with staff reductions, including two part-time positions and one co-director position.

BE IT FURTHER RESOLVED, funding approved with any budget amendment providing supplemental/emergency funding to extend daycare operations for the Gates County Board of Education shall be distributed in monthly allocations to begin in January  2026, whereby Gates County and the Gates County School District will each contribute fifty percent (50%) of the cost to cover the monthly operating deficit, not to exceed $50,000 of County funds. Monthly allocations will be distributed upon the County’s receipt of the Board of Education’s latest cashflow report, staffing levels, and number of students; and 

THE GATES COUNTY BOARD OF COMMISSIONERS HEREBY, state for the official record, its concern and disappointment in the fiscal administration by the Gates County Board of Education resulting in the School General Fund’s fund balance $108,377 for the Gates County School District on July 1, 2025, as reported by the draft audit report dated October 13, 2025.

Adopted this 19^th day of November 2025.