Pitt County Schools board approves $6.4 million state fund increase and discloses special‑education settlement

At its meeting, the Pitt County Schools Board of Education approved Budget Amendment No. 2, which increases the district’s amended budget and authorizes accounting entries tied to capital lease reporting, and disclosed the settlement of a claim related to delivery of exceptional‑child (EC) services.

The board’s finance presenter, identified in the meeting as Mike (staff member), told the board the district’s total amended budget stands at about $359,000,000 and that state funding comprises the largest share of that total. Mike said the amendment increases the state fund by about $6,417,000 to a state fund total reported as $205,586,444.10 and shows increases across several program lines, including instructional services, exceptional children and a safety and security grant.

Why it matters: the amendment reallocates or increases available budget authority across state, local, federal and special revenue funds, and includes capital outlay entries to record lease or subscription purchases required by governmental accounting standards.

Details of the amendment and key figures - Total amended budget (all funds): approximately $359,000,000 as of June 30, 2025. - State fund: reported original budget about $193,000,000; Amendment No. 2 increases the state fund by about $6,417,000 (amended state fund total reported as $205,586,444.10). - Local fund: reported original local budget $59,329,000; Amendment No. 2 shows a local increase of about $2,837,000 (amended local total reported as $62,167,591). - Federal funds: reported original $26,814,000; net increases across amendments bring federal special revenue to about $37,384,000. - School nutrition fund: amended to about $19,317,000 after planned spend‑down and use of fund balance. - The presenter said instructional services represent roughly 71% of instructional/operating spending and that capital outlay line increases include $3,500,000 to allow required accounting entries for lease purchases.

The board heard specifics tied to several program changes: a $676,000 increase for exceptional children; a $169,000 increase in state technology; a $880,000 safety and security grant; and a reported instructional services increase of about $3,200,000 in the state fund column. The presenter said some capital and subscription purchases require budget authority to record as capital outlay under Governmental Accounting Standards Board rules.

Board discussion and follow‑up questions Board members asked about the status and allowable uses of litigation proceeds labeled “red light funds.” Mike responded, “We prevailed in that litigation, and those are ours now to spend,” and said remaining amounts previously allocated related to charter‑school preparations have been admitted and the remaining balance is available for the schools’ discretion.

Members also asked about funds from settlements tied to vaping incidents. The presenter said the district had originally received about $228,000 in related settlement funds, that portions had been spent on vape detectors and associated subscription fees, and that staff would provide an update on remaining balances.

Votes and formal actions - The board approved the consent agenda (items 1–11) by voice/roll call. The consent agenda included the disclosure that the board had approved a settlement of a claim brought by a parent on behalf of a student regarding delivery of EC services. The agreement’s substantive terms are confidential; the board disclosed only that it agreed to pay attorney fees of $5,296.62. - The board approved Budget Amendment No. 2 by voice/roll call after discussion.

Both the consent agenda approval and the budget amendment passed on recorded roll call responses from board members present.

Process notes The board went into a closed session earlier in the meeting under the district’s authority to consult with legal counsel concerning pending litigation, citing the district’s right to consult counsel and referencing the statutory authority for closed sessions. The closed session item included discussion related to a judicial action identified in the record with case number 25EDC02074. The board later returned to open session and announced the settlement and the budget amendment.

Ending Board members approved the remaining business and adjourned. Staff indicated they will provide members with follow‑up information requested during discussion, including a status update on the vape‑related settlement funds and a more detailed breakdown of amendment line items.