Running in the red, Shining Rock may end high school instruction
Shining Rock Classical Academy has some tough decisions to make.
File photo
Shining Rock Classical Academy’s governing board is weighing whether to end its high school operations by summer after a new financial sustainability report revealed the Dellwood Road campus is operating at a $300,000 deficit and would require more than $1.1 million in facility investments over the next few years.
The 24-page report, presented to the board during a special called Feb. 11 meeting, breaks out revenue and expenses associated with the high school and Dellwood campus, showing total revenues of $1,177,189 against expenses of $1,480,180. The report notes that the expense total may even understate the true cost of operating Dellwood because several shared staff salaries are not allocated to the campus in the analysis, including Head of School Joshua Morgan and other administrative positions.
The shortfall comes as enrollment has failed to meet original projections made in 2020, when school leaders anticipated steady growth to 160 high school students, roughly 40 per grade. Instead, actual enrollment has stabilized with 105 students enrolled in the 2025-26 school year.
Compared to projections, overall enrollment has been more than 30% below target each year since 2022.
According to the study’s financial analysis, maintaining current staffing and expense levels would require enrollment of 143 students to break even — an increase of 38 students, or 36% over current levels.
Revenue for the high school and Dellwood campus is primarily driven by state funding. For FY26, state revenue totals $847,504, with an additional $282,936 in local funding and $30,000 in school lunch revenue. Charter schools receive state funding at the same average daily membership rate as the county in which they are located, currently set at $7,066 per student.
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On the expense side, salaries and benefits account for the largest share of the Dellwood budget. Teacher salaries alone total $528,850, with total salaries and bonuses at $686,725 and benefits at $188,354. Debt service and rent add another $291,400, including a $230,000 bond payment and $51,000 land lease. Technology expenses total $50,000, while books and supplies add $49,650.
The Dellwood campus has been home to Shining Rock’s high school since 2022, when grades 9-12 were moved from the Russ Avenue campus to allow for growth in K-8 programming. Originally leased from Lake Junaluska Assembly, the property consists of modular units installed in 2016. The initial 10-year lease will expire on Dec. 31.
Even if the lease is renewed, the facility faces substantial capital needs.
A facilities assessment estimates one-time expenses of $1,143,000 over the next two to three years to address roofing, decking, HVAC and building rehabilitation. Roof replacement is estimated at $148,000. Deck repairs are projected at $32,000. HVAC replacement could cost approximately $513,000. Building rehabilitation is estimated at $450,000.
“To modernize and mitigate unbudgeted expenses, a commitment of over one million dollars over the next 2-3 years is required,” the report reads. “These expenses do not factor in upgrading current facilities or implementing any new academic programming.”
The report blames Shining Rock’s financial strain on broader demographic and economic shifts in Haywood County, citing a series of historic floods, including Tropical Storm Fred in 2021 and Hurricane Helene in 2024, as well as the 2023 closure of the Pactiv Evergreen paper mill in Canton, which had employed more than 1,000 workers.
According to the North Carolina Department of Commerce, Haywood County’s economic distress rank slumped to 56 in 2026, down from 83 out of 100 counties the previous year, shifting the county from tier three to tier two. Tier three counties are the most prosperous, while tier one counties are the least prosperous.
Population growth has also lagged the state average, with Haywood County growing 3.0% from 2020 to 2024 compared to 5.8% statewide.
Enrollment data reflects those broader trends. Cohort tracking shows a net loss of 21 students as classes progressed from freshman year to graduation, meaning that as students progress from 9th grade to 12th grade at Shining Rock, nearly 19% of them will leave before completing their senior year.
Governance issues have also plagued the school since its inception. Shining Rock’s governing board isn’t elected, like public school boards are, giving the taxpayers who fund its operation no say in who leads the school.
Most recently, the school lost a public records lawsuit brought by a parent seeking information on an incident during which her son was placed in the back of a police car. Shining Rock countersued for defamation but lost on all counts after a judge ruled that the school had relied on the “improper use of governmental authority to stop or inhibit the public from accessing public records and government information” and failed to prove defamation by the parent.
The school subsequently chose not to renew contracts with its attorney or with a key consultant tied to the lawsuit and last November was deemed responsible for more than $115,000 in attorney’s fees payable to the parent, per court records.
During the meeting, another parent, Elizabeth Young, complained during public comment about learning of the potential shutdown in mid-February — leaving affected high school students little time to prepare for the closing — and offered criticism of who she thought was responsible for the financial strain.
“I do believe that the fish rots from the head down, and the leadership of this organization should change,” Young said, before being shut down by Chair Alyson Weimar.
“I'm going to pause you there, thank you for that statement,” Weimar said.
Shining Rock’s public comment policy prohibits speaking specifically about “any individual student, teacher, staff member or board member” but not general criticism of the organization, so it’s unclear why Young was silenced by Weimar.
“I just wanted to introduce myself to you, because this will not be the last time you see me,” Young said.
The sustainability report itself does not offer a recommendation on whether to close the high school or vacate Dellwood, however a motion to end high school operations and close the Dellwood campus was offered at Shining Rock’s Feb. 11 meeting.
According to a Feb. 12 email sent by Morgan, that motion was tabled and could be brought up again at Shining Rock’s next meeting on Feb. 25.
