Durham Public Schools’ finance leaders reported a significant budget challenge at the Nov. 20 board meeting: lower-than‑expected district enrollment combined with growth in local charter school enrollment has increased the district’s charter pass‑through obligation by roughly $4.7 million.

Reuben Barfield and Mr. Teeter explained that the district had used a budget projection based on a version‑3 enrollment number of about 31,096 students; actual enrollment materialized at approximately 29,717, while charter enrollments rose to 23% of the total — pushing the district’s projected obligation to charter schools from roughly $46.3 million to about $51 million. The presenters said the net shift amounts to an additional $4.7 million the district must account for in this fiscal year’s planning.

Finance staff also laid out immediate and near‑term responses: a working group will review service contracts for potential reductions, a hiring freeze will be considered (excluding positions required by statute such as special education and bus drivers), encumbrances will be closed by Feb. 27 where possible to limit spending, and the district will evaluate vacancies and other operating expenditures. The administration reported that 33 classroom sections may need to be collapsed in the allotment process, and emphasized efforts to target reductions in sites where over‑allotments persist while protecting staffing in low‑performing schools.

Board members and staff discussed outreach strategies to encourage families to return to district schools, and several trustees urged sharing charter‑school enrollment and performance data with county officials. Trustees also noted state‑level budget uncertainty and the potential for further financial risk if state revenue action is delayed. Administration said it will report back to the board at the December meeting on the working group’s findings and any contract recommendations.

Mr. Teeter said an across‑the‑board 1% pay increase for classified employees would cost about $1.1 million — an example the board used to consider scaled compensation changes during budget planning. He cautioned that fund balance estimates ($7–8M projected at audit) could be consumed rapidly if used to plug large gaps.

Board members asked for a clear timeline and a multi‑year strategy to recover enrollment and reduce charter pass‑through exposure; staff committed to bringing recommendations to the board in December.