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Finance director: district tracking to budget but cash flow requires county assistance; budget amendment of ~$718K to be placed on consent
Summary
Phil Penn reported Cabarrus County Schools is tracking close to budget but faces cash‑flow pressure due to declining fund balance; county provided front‑loaded appropriations in November to cover semiannual teacher supplement. Budget Amendment No. 2 increases the total budget by about $717,997 and will be added to next week's consent agenda.
Phil Penn presented the district’s monthly budget summary and a proposed Budget Amendment No. 2 to the Cabarrus County Board of Education on Dec. 1.
Penn said the district is "tracking very closely to budget" but noted a decline in fund balance has created cash‑flow pressure ahead of a multimillion‑dollar semiannual supplement payment to certified staff. To address timing of the supplement, the county agreed to increase its November appropriation to 150% of the usual monthly amount and reduce December’s appropriation by 50%, which Penn said will resolve the immediate timing issue without affecting the June payment.
Budget Amendment No. 2 would affect funds 1, 3, 4 and 8, producing a net increase of approximately $717,997 to push the total budget to about $536.7 million. Highlights Penn cited included a roughly $600,000 increase in the State Public School Fund (from state connectivity and a special reserve for children with disabilities), a federal fund net increase of about $21,000 (CTE increases partly offset by an IDEA reversion), a $228,000 increase in local capital fund 4 to support projects (including WM Irvin playground), and a $5,000 award for a Confucius classroom grant in the special revenue fund.
Penn said the county’s cooperation was essential to issue the supplement payment on time. He also noted an unencumbered balance around $319,000,000 of the $536,000,000 budget and reiterated that the finance team will monitor cash through December.
The board agreed to add Budget Amendment No. 2 to next week’s consent agenda for formal action.
