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Superintendent warns of roughly $2 million gap even as state budget raises teacher pay
Summary
Superintendent Dr. Barnes told the New Hanover County Board of Education the newly signed state budget likely raises teacher pay (about a 7.8% average on the teacher schedule) but leaves the district facing an estimated $2,000,000 impact because the state does not fully fund raises for locally or federally paid positions; the county contributed $885,000 to partially offset costs.
Superintendent Dr. Barnes told the board July 7 that while the new state budget includes salary increases for teachers and one‑time bonuses, the way those funds are allocated will leave the district responsible for substantial additional costs.
"When the state says we're going to give a $1,750 bonus to everybody, they only pay for about 60% of the people that we have," Barnes said, explaining why the district is projecting an estimated $2,000,000 impact to its budget. He also said retirement contribution rates and insurance costs increased, which adds to the district’s obligations. The superintendent said the district is hopeful additional state allocations and county support can close the gap, and noted New Hanover County provided $885,000 to help offset pre‑K program and Title I carryover shortfalls.
The superintendent urged caution about timing: the district is waiting for formal guidance and funds from the North Carolina Department of Public Instruction and said it will not make long‑term adjustments until payments are visible in the accounting system.
Barnes also highlighted operational items: district summer meal distributions through the USDA 'Meals to Go' program, a new bus tracking app (Chipmunk) that replaces the previous parent portal, and summer learning and library programs across five sites.
Board members asked clarifying questions about which employees receive state funds and which will rely on local or federal dollars. Barnes said the state only funds its portion of pay raises for state‑paid positions; local and federally funded positions require local dollars to provide the same increases, which creates the budget gap. He described steps the central office took last spring to curb discretionary spending to prepare for fiscal uncertainty.
The board was told the finance department will continue to analyze allocations and report back; payroll adjustments could appear in July or be reflected and paid retroactively in August depending on timing from the state.
