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Gaston County approves $10M transfer to schools after superintendent warns of imminent layoffs
Summary
Facing a projected $10 million shortfall, the Gaston County Board of Commissioners unanimously approved a one-time transfer from county fund balance to Gaston County Schools after Superintendent Morgan Houchard said layoffs could begin immediately without action.
Gaston County commissioners unanimously approved a one-time transfer of county fund-balance dollars on March 24 to cover an immediate operational shortfall at Gaston County Schools.
Superintendent Morgan Houchard told the board the district faces a projected $10 million, or roughly 2.1%, shortfall driven by the loss of low-wealth supplemental funds, inflationary pressures, and the end of federal ESSER funding. Houchard said consultants HIL advised the district will need cash-flow assistance to complete the 2025–26 school year and said layoffs would need to begin the coming Friday without an infusion of funds: "I have to start Friday with 100," he said.
Commissioners debated the county’s statutory role in funding schools, noting that state funding is the primary responsibility but that delays and reductions have left the district vulnerable. Multiple commissioners said the board weighed moral and community considerations in deciding to act, and some noted the decision could affect future bond timing or require budget trade-offs.
Vice Chair Commissioner Bob Hovis moved to appropriate the funds; Commissioner Scott Sheehan seconded the motion. The board voted unanimously to provide the support. County staff said the manager had confirmed that the transfer would not jeopardize the county's financing commitments.
Houchard said the district has enacted a set of cost-saving measures — including hiring freezes, position eliminations and purchasing restrictions — and engaged HIL Consultants to guide cash-flow and budget adjustments through July. He said those measures will continue alongside the county support so the district can complete the school year without immediate layoffs beyond those already planned.
The board directed staff to document the transfer and indicated the county and school district will continue discussions about long-term solutions. The commission expects the county manager to present the formal appropriation documentation to the clerk and to include the topic in upcoming budget deliberations.
The board’s vote followed public testimony earlier in the meeting by teachers and residents urging increased local support for teacher supplements and district operations.
