Chief finance staff told the board the state is completing its annual "true-up" process and has provided additional allotments that increase the district’s state budget by about $2.9 million and federal grants by roughly $5.1 million for the current year.

What the money is for: The finance presentation (by Mr. Steele) listed program-level adjustments: roughly $2.6 million for instructional programs and $326,627 for systemwide support in the state allotment; federal grant increases were driven largely by additional exceptional-children (EC) allocations (O60) of roughly $3.8 million and other federal EC funds totaling about $793,000. Fund-specific increases included roughly $851,184 in FY24 gear-up funds in a special revenue fund.

Restrictions and effect on shortfall: Staff said many of the increases are restricted to specific uses (literacy intervention, CTE credentials, connectivity/e-rate, developmental-day grants, VIF waiver adjustments) and therefore do not free general operating dollars. The finance director told the board most of the items had been expected and were already “baked into” budget forecasts; he characterized the amendments as compliance-level adjustments required to match state and federal accounting categories.

Questions and clarifications: Board members asked whether particular expense movements (for example, $250,000 for mowing moved from general operations to capital) should appear in the amendment; staff explained that internal transfers within budget series sometimes do not require separate board amendments when funds already exist in another category. A board member asked about an $8,000 anonymous donation to North Iredell High School’s art program; staff said the donor asked to remain private.

What will happen next: Staff presented the amendments for board review and said they will return with a formal motion at the next meeting for approval. No formal vote was taken on the amendments at this session.

Ending: Finance staff offered to provide requested backup spreadsheets and to include clarifying notes on funds that are strictly restricted versus those that can be used for general operations.