CMS budget team proposes teacher-supplement increases, classified pay study and a pilot math bonus amid federal funding uncertainty

Charlotte-Mecklenburg Schools presented a multi-part budget update on March 25 that combined a five-year forecast, an explanation of federal funding risks and a set of compensation proposals intended to shore up teacher and staff recruitment and retention.

Chief Financial Officer Kelly Klutz and Superintendent Dr. Earnest Hill told the board that the district is operating in a constrained fiscal environment. Key risks cited included state revenue projections that are essentially flat for fiscal 2025–26, county revenue shortfalls, and uncertainty around federal grant renewals. Staff highlighted that roughly 75–77% of the operating budget is salary and benefits, and said the district will plan conservatively until state and county figures are final.

Federal funding risk: staff reported termination notices for several discretionary federal grants and said those awards are under appeal. Staff provided a high-level inventory showing the dollar amounts, the number of positions funded by each grant and which positions are school-based. Chief Klutz said federal formula grants (Title I, Title II, Title III) represent a large portion of district services and that certain discretionary grants are higher risk; district staff said they are preparing prioritization committees to evaluate program continuity if carryover or federal funding is reduced.

Compensation proposals: the district proposed several compensation adjustments in its recommended budget framework: - Certified teacher supplement: a recommended across-the-board 4% supplement increase plus an additional 1% for teachers with 15+ years of service to address flat state steps after year 15. Staff said the goal is to make CMS’s supplement the highest in the state. The presentation included comparisons of total teacher pay (state base salary plus local supplements) with other large North Carolina districts. - Classified compensation study phase 2: after raising several low-wage groups to $20 per hour in an earlier step, CMS proposed a second phase to bring additional classifications closer to market. Staff said phase 2 will not bring all roles to market immediately but starts a multi-year approach. - Math 1 Excellence bonus pilot: Doctor Christopher Daniels described a pilot that would place 960 students with 32 selected teachers in Title I high schools, funded with Title I district set-aside dollars, with a total investment of $728,000 over the year; maximum individual bonuses were described as about $15,000. Staff said the pilot targets 14 Title I high schools and will be evaluated for return on investment before any expansion.

Board members expressed concern about reliance on Title I funds for the pilot and about unintended consequences of incentive pay creating intra-school competition. Staff responded that the pilot is small relative to overall Title I allocations and that widespread expansion would require different funding sources.

Capital and one-time asks: CMS staff requested recurring county capital funds of approximately $22.9 million and said they expect to request an additional one-time $10 million for completion of a districtwide Facilities Condition Assessment (FCA) and to plan long-term capital needs based on the FCA findings.

Why it matters: the package ties proposed investments in teachers, school-based specialists and student supports to the district’s academic goals, but staff emphasized budget uncertainty and possible federal grant reductions. Several board members urged advocacy for greater state base pay and legislative changes to address regional cost differences.

Follow-up actions: staff said they will deliver a superintendent’s budget recommendation on March 25 (presentation completed), hold public engagement sessions in April and present a proposed budget for board consideration in April. Staff also said they will continue appeals on contested federal grants and develop prioritization committees if funding is reduced.