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Cabarrus County Schools reports stable finances despite unknown state budget, flags $2M in outstanding Medicaid reimbursements
Summary
CFO Philip Penn told the board the district’s finances are stable pending a state budget; he highlighted $2 million owed by Medicaid dating to 2023–24, $285,000 collected in fines and forfeitures year to date, and budget amendments that added federal and private grants.
CFO Philip Penn told the Cabarrus County Board of Education on Nov. 3 that the district is in a "stable financial position" even though the state budget for 2025–26 has not been finalized.
Penn said the district is monitoring volatile expense areas including services for exceptional children, legal costs and unexpected building maintenance. He reported that fines and forfeitures have generated about $285,000 over the first three months of the fiscal year — a run rate he described as roughly $95,000 per month compared with a budgeted $73,000 per month.
On Medicaid, Penn said the district is still owed about $2,000,000 in reimbursements dating to the 2023–24 fiscal year and that the budget includes $950,000 in unrestricted Medicaid funds. "We are certainly hoping we see at least some of that roll in by December," he said, but added the district has limited ability to expedite state processing.
Penn walked the board through budget amendment number 1, explaining that roughly $1,700,000 in additional state funds were recorded but that accounting for two newly created starter budgets made the monthly state‑funding line appear as a $700,000 decrease — an accounting artifact rather than a cash loss. He said federal funds recorded included a $90,000 McKinney‑Vento homeless assistance grant and that small grants — $10,000 for Mandarin programming and $5,000 from Corning for a VEX robotics program — were also added to federal and special revenue funds.
Board member Pam Escobar asked whether the $90,000 McKinney‑Vento allocation covers the district’s homeless needs; Penn replied that it does not and that the district supplements those needs with other funding sources including exceptional children (EC) allocations and Title I funds. He also said the district is awaiting transportation assistance grant information from the state.
The board’s staff summary shows an overall budget balance near $536,000,000 and indicates the administration expects the budget to change further as additional state program codes (PRCs) and any enacted state budget details become available. Penn said the district is continuing to track revenue and expenses closely and will present further amendments as needed.
The board did not take a final vote on the amendment at the Nov. 3 work session; the amendment will be considered for placement on the consent agenda at the business session next week.
