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Finance update: district deficit narrowed after Kids Plus reconciliation and health‑care estimate improvements
Summary
Chief finance staff reported a narrowing estimated deficit to about $680,000 after recovering $1.6 million from Kids Plus and improved health‑care estimates; the board discussed substitute and overtime pressures and school lunch negative balances.
Cabarrus County Schools finance staff told the board on May 5 the district has sharply reduced its previously projected deficit following a series of adjustments, though some budget pressures remain.
Philip Penn, chief finance officer, said recent analysis identified higher overtime and substitute costs that increased spending earlier in the year; substitute costs had reached approximately $2.9 million year‑to‑date. At the same time, updated health‑care projections improved district estimates by about $390,000. Penn reported that Kids Plus, the district’s childcare/extended‑day program, held a cash balance of roughly $5 million; reconciling led to a $1.6 million transfer back to the district that can be appropriated as fund‑balance support for the current year.
When combined with other actions, Penn estimated the remaining deficit at about $680,000 — down $6.2 million since January. He said many purchase orders have been encumbered and staff are reviewing old POs to free funds. He also reported that a proposed Medicaid settlement for the 2023–24 year looks likely to deliver about $890,000 to the district by June 30, which would further reduce the shortfall.
Board members asked how negative student lunch balances are handled. The superintendent and finance staff said school principals typically cover outstanding meal debts from school funds, and the district continues to solicit community donations and targeted communications to families. The superintendent said meal‑balance work is ongoing and recommended a finance committee follow‑up with more detailed reports for board consideration.
Penn and other staff said they expect to close most remaining budget actions by the end of June and will continue monitoring substitute and overtime patterns to reduce recurring pressures.
