Note: This story has been updated, adding comments from board member Pat Bradford.
In a memo obtained by WHQR, Chief Financial Officer Ashley Sutton wrote that an analysis of general fund cash and current spending levels indicated additional restrictions were needed to balance the budget next fiscal year.
This comes amid ongoing budget negotiations between the New Hanover County Commission and the New Hanover County School Board. Sutton reported a $20 million hole in the budget from declining federal relief funds, declining student enrollment and rising employee benefit costs.
The commissioners meet at 1:30 p.m. at the Government Center this Thursday to discuss the county's share of district funding, among other budgetary matters.
For the remainder of the school year, reimbursements will cease for out-of-county and in-county travel; exceptions include staff positions divided between schools, pre-approved field trips, and athletics.
If not already approved by a purchase order, staff development and the purchase of supplies and equipment are canceled for the remainder of the year. They will also refuse to approve new service contracts. The caveat is that the CFO or Superintendent could approve the expenditures, or there could be an emergency expenditure for safety or security reasons.
Sutton then provided another form if they needed to apply for emergency funding.
“Our challenge is daunting and we are confident that we can count on you and your staff to help us through these difficult times,” she said.
WHQR has reached out to the district and school board for comment or additional details.
Board member Pat Bradford wrote to WHQR: “This financial crisis was not created overnight; it was created over several years and on several budgets. »
She added that the budgets for fiscal years 2022 and 2023 were ones in which annual salaries were funded by “unsustainable revenues.” They borrowed from the fund balance every year.”
“I warned repeatedly that the day would come when the district would run out of money if they didn't stop what they were doing and come up with a plan. When you tell principals they can't not buy school supplies, that day has come,” Bradford said. said.
