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Board approves midyear budget amendment; finance staff report spending trends and pressures
Summary
Finance staff presented a midyear spending review and the board approved a budget amendment that reallocates roughly $1.55 million across funds; staff flagged higher-than-expected property insurance, charter school payments, and several one-time repairs as drivers.
The Craven County Board of Education approved a midyear budget amendment and heard a spending review from district finance staff that identified several outliers affecting the current fiscal year.
Finance staff described a formal amendment of $1,549,397 that shifts and updates appropriations across multiple funds (state, local, federal and school nutrition). Staff said reasons for the midyear adjustments include an increase in property insurance, higher payments to charter schools linked to growth and the opening of a new charter campus, unanticipated repairs (for example an extensive moisture remediation at one school), and a more expensive athletic training contract after a vendor breakdown.
Why it matters: the amendment affects available fund balance and the district's ability to meet expenditures in the remainder of the fiscal year. Staff said they will continue to monitor spending and bring the second amendment when 75% of the fiscal year has passed to provide greater transparency into year-to-date budgets.
Staff also provided a midyear spending review by purpose and object code. Highlights included near-complete spending in some grant categories that carry a Sept. 30 deadline, timing effects in federal funds (some federal grants arrive later and create temporary local codings until funds are received), and a $2 million planned use of school-nutrition fund balance to smooth operations while reimbursements arrive.
Action: the board voted to approve the presented budget amendment in open session. Board members asked staff to provide backup documentation for several line items: (1) a transfer of about $978,653 out of a system-wide support services purpose into instructional purposes, and (2) a $212,000 use of special revenue fund balance; finance staff agreed to provide detailed backup spreadsheets.
Ending: finance said it will produce a 75%-year spending update with departmental detail and supply the requested line-item documentation to board members outside the meeting.
