Board approves request to county for roughly $20 million to cover top capital priorities

The New Hanover County Schools Board of Education voted unanimously to ask the county for funding to cover the district's top capital priorities, approving a board motion to request roughly $20 million after accounting for anticipated lottery and other revenue sources.

Staff presented a multi-part budget update, including an operating-budget change that relies in part on a new process to claim state refunds for positions coded as state-paid employees who do not participate in the state health plan; staff estimated that change could yield roughly $500,000 in reimbursements for the coming year. The presentation also reviewed pre-kindergarten funding: the district used about $1.2 million in Title I carryover this year to cover a Head Start shortfall and anticipates only about $300,000 in Title I funds available for pre-K next year, creating a roughly $700,000 gap the proposed operating budget would address in part by shifting local funds.

The capital presentation laid out the district's full request if everything were funded ($41.3 million) and a more-limited set of "priority 1" items ($28.4 million). Staff explained expected external revenue: approximately $2.5 million in state lottery funds and roughly $663,000 in lottery repairs-and-renovations funding. After subtracting lottery and other identified sources (and noting endowment asks in progress), the board settled on a county ask of a little over $20 million to cover the district's immediate top-priority capital needs, which include roof and HVAC replacements, upgrades to HVAC controls, backflow preventer replacements, auditorium and auditorium-sound repairs, campus safety and security upgrades, and classroom and career-technical facility renovations.

Board member Dr. Tim Merrick moved that the board request funding for all priority-1 capital items across categories (repairs and renovations, technology, furniture and equipment, vehicles and facilities capital) and include a stipulation that the county assist the district in covering emergency expenses beyond the district's restricted fund balance (not limited to storm-only events). The board discussed pacing and implementation capacity: staff warned that accomplishing priority-1, 2 and 3 items in a single year would strain district staff, and members asked staff to prioritize implementable projects. Several members also noted ongoing discussions with the county endowment for specific operating items (for example, district specialists and device purchases) and that any endowment support would reduce the county ask.

When the motion was put to a vote it passed 5 to 0. The board chair directed staff to incorporate the board's guidance into the final proposed budget and county request to be presented again at the board's April meeting (and shared earlier with the finance committee), and staff said they would return with a refined list of the priority-1 projects and dollar-precise asks.

Votes at a glance - Motion to request county funding for priority-1 capital items (board motion): Passed, 5-0. Outcome: board approved asking the county for roughly $20,000,000 (after subtracting projected lottery and other revenues) and requested county assistance beyond restricted fund balances for non-storm emergencies.

The board also reviewed other operating items during the work session (pre-K staffing and transportation impacts, possible $500,000 state refund, and ongoing efforts to maximize positions for schools). Staff asked the board for a target capital number to use while preparing the formal county request; the board's vote provided that guidance.