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McDowell schools bill insurers for Hurricane expenses; FEMA aid and state budget hold up final numbers
Summary
Finance staff told the McDowell County Board of Education the district submitted about $675,000 in hurricane-related claims last week and expects roughly $3.5 million in insurance reimbursements to date; FEMA reimbursements and the state budget timetable will determine the final 2024–25 closeout and the 2025–26 budget timeline.
Suzanne Rampey, a finance staff member, told the McDowell County Board of Education that the district submitted an additional insurance claim last week for about $675,000 related to hurricane damage and expects the total insurance reimbursements to reach about $3.5 million for costs incurred so far. “For the hurricane related expenses, we have billed the insurance, last week, $675,000 worth of expenses. Once we receive that, we will have received $3,500,000 from insurance for reimbursements of expenses that we have expended today,” Rampey said.
Rampey said Federal Emergency Management Agency (FEMA) payments are proceeding separately and that FEMA reimburses after insurance has paid or denied claims. “We did receive $71,000 from them last week, and to date, we've received about $232,000 in reimbursement of costs that we have,” she told the board.
The finance staff also reported progress on the district’s year-end closeout and audit schedule. Rampey said auditors completed fieldwork during a visit last week and will continue through Oct. 31; the district expects the audit report by the end of the calendar year.
On the operating budget for 2025–26, Rampey said the district is operating under a state-authorized continuation budget while it awaits the official state budget. “For budget 2025–26, we are still pending a budget from the state, but we do have the continuation budget in place,” she said, adding that the state had approved step increases but not across-the-board raises for staff.
Rampey advised the board that the finance committee will meet before the board’s October meeting to prepare a budget resolution for consideration and that a final budget will be presented after the district receives the state appropriation.
Why this matters: Insurance and FEMA reimbursements affect how much money the district has available for repairs and operations this year; the timing of the state budget affects whether the district must continue operating under a temporary continuation budget.
Next steps: finance staff will meet with the finance committee before October to prepare a budget resolution, auditors will finish fieldwork by Oct. 31, and the district expects its audit report by year-end.
