New Hanover board adopts budget amendments to reflect state funding changes and grant carryover

During agenda review, district finance staff presented a budget amendment that adjusts revenue assumptions and records carryover from federal and restricted grants.

Staff told the board the district no longer qualifies for a state local-supplement subsidy because the county’s adjusted taxable property value exceeded the statutory threshold; that change required reductions in state revenue assumptions. "Our county now has too much taxable income to warrant the state supplementing our local funding," staff explained when describing the state revenue reduction.

At the same time, staff recorded roughly $12 million in restricted carryover revenue related to grants and indirect cost recoveries and included a $2.7 million endowment-funded school specialist grant. Capital outlay projections were reduced by about $6.7 million to match expected county support. Finance staff summarized the net effect as approximately a $4.9 million net increase when considering fund restrictions.

Board members asked whether those increases represented fungible funds. Staff clarified the increases are largely restricted to specific titles and grants and cannot be moved to cover losses in other funds. "Even though we may have gotten some gains in some areas, we can't necessarily take that money to spend it in the places where we've lost funding," a staff member said.

What happens next: The board approved the amendment as presented; staff will incorporate the revised figures into the district’s financial records and continue work with the county and legislature on funding shortfalls.

Source: Budget-amendment presentation and board Q&A at Feb. 11 agenda review.