Charlotte-Mecklenburg Schools outlines 2025–26 budget needs, directs staff to draft teacher-supplement plan

Charlotte‑Mecklenburg Schools leaders told the Board of Education at a Feb. 18 special budget work session that state revenue is effectively flat for fiscal 2025–26 and that federal grant terminations and county revenue shortfalls create a constrained funding picture for the district’s operating budget.

The session, led by Superintendent Dr. Hill and CFO Kelly Klutz, reviewed the district’s three primary revenue sources — state (about 53.8% of the operating budget), local (about 34.4%) and federal (about 8.4%) — and the ways recent state tax cuts and potential formula changes could reduce state funding. “Expenses are expected to increase. Revenue is flat,” Dr. Hill said as staff explained the structural pressure that drives planning decisions.

Why it matters: CMS relies on a mix of state, local and federal funds, and a substantial share of several important classroom positions is paid through federal grants. Staff told the board that federal reductions would affect school staffing and programs because roughly 70% of several federal grants are salary and benefits, meaning cuts translate into people costs.

Major federal grant changes and immediate impacts Kelly Klutz told the board that the district received termination letters for two discretionary grants on the day of the meeting: a Teacher Leader Pathway (TLP) grant (about $1.9 million) and a National Board Certification seed grant (about $175,000). She said a…