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Board reviews budget outlook; $2.5M amendment added to next week’s consent agenda

Cabarrus County Board of Education · January 6, 2026

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Summary

Finance staff reported a generally sound fiscal position, a projected interest-income shortfall of about $128,000, potential Medicaid receipts of roughly $695,000, and presented budget amendment #3 (about $2.5 million in net increases) for placement on next week’s consent agenda.

Mr. Phil Penn, who presented the district’s monthly budget update at the Jan. 5 work session, told the board the district is largely in line with financial expectations but flagged a projected shortfall in interest income for the year.

"The run rate gets us to $204,000 for the year for about $128,000 less than we had budgeted," Penn said, describing lower short-term interest rates as the driver of the variance. He added that the district’s Medicaid consultant informed the district that several quarterly Medicaid payments could arrive in January; if those include the three oldest quarters currently owed, they could total about $695,000.

Penn summarized budget amendment number three, explaining it affects multiple funds: roughly $1.3 million added to the state public school fund (statutory bonuses and recurring grants), $980,000 released from county contingency for charter payments, about $107,000 in federal adjustments and an expected additional $138,000 tied to opening an NC Pre-K classroom — an aggregate increase of roughly $2.5 million.

Board members asked for clarification about whether the district is affected by a separate state suit over federal funds; Penn said he would research and provide an update at the next meeting. With no objection, the board agreed to place the amendment on next week’s consent agenda for action.

Next steps: Penn will follow up with the requested clarifications about the state litigation question and bring the budget amendment forward for the board’s vote at the next regular meeting.