Cabarrus board approves 2025–26 closing budget resolution after surplus projections

The Cabarrus County Schools board approved a closing budget resolution for fiscal year 2025–26 on July 13 after staff said revenues exceeded earlier estimates and adjustments were needed across multiple funds.

Chief Financial Officer Phil Penn told trustees the district expects a local operating budget surplus in the low millions and that three additional Medicaid reimbursement checks pushed special revenues notably higher. "By the time we account for anything that's gotta be deferred into next year or final expenses that come through in the month of July... we're probably gonna be close to about 2.7 or 2,800,000 is kind of where we're trending right now," Penn said.

Penn traced the surplus to several end-of-year adjustments, including roughly $1 million in additional guaranteed state allotments and a $97,001.89 net increase to the local operating fund to pay charter-school shares of fines and forfeitures. He said Fund 8 (special revenue) moved from a projected drawdown to a surplus after the state issued three otherwise-unexpected Medicaid checks totaling nearly $1.4 million, bringing full‑year Medicaid revenue to about $2.3 million.

Board members asked about the predictability of Medicaid reimbursements. Penn said the district can estimate the amount but not the timing—payment timing is controlled by state audits and controller processes. He also flagged a shift in state-level low-wealth funding that likely delays some aid until FY 2027–28.

The board took a motion and second and approved the final 2025–26 amendments by voice vote. The resolution makes final allocations across funds 1, 2, 3 and 8 and records expense reclassifications with no net change in some federal and special revenue accounts.

Ending: The board approved the closing resolution and moved on to other agenda items; Penn said auditors will finalize figures during the formal audit process in October–December.