The financial health of public schools in North Carolina, particularly in Chapel of Carver City Schools, is facing significant challenges, as highlighted in a recent government meeting. Board members emphasized the importance of fiscal stewardship and the need for a sustainable financial model to support students, staff, and the community.

Chair of the finance committee, Miss Jenkins, noted that previous boards had established processes for better oversight of expenditures and contracts. She stressed the urgency of addressing the district's financial situation, which has been deteriorating due to declining enrollment and rising costs. The district has seen a 10% drop in student enrollment over the past five years, resulting in a loss of approximately $8 million in state funding, which is critical for covering fixed costs.

Chief Financial Officer Jonathan Scott provided a detailed financial update, revealing that the district's local fund balance has decreased from $16 million to an anticipated deficit below zero for the first time in years. Over the past four years, the district has experienced increasing budget deficits, with losses escalating from $120,000 in 2021 to an expected $5.6 million in the most recent fiscal year.

Scott explained that the district is currently operating under a continuing spending resolution, with plans to adopt a budget on October 17. He outlined a three-tiered approach to address the financial shortfall, which includes a corrective action plan that is expected to yield $2.4 million in savings this year and a reduction in force in central office and support services projected to save over $2 million.

The board is actively working to implement these measures while navigating the complexities of state mandates and inflationary pressures. The discussions underscored the critical need for community engagement and support as the district strives to achieve financial sustainability amidst challenging circumstances.