New Hanover County school board budget shortfalls could mean elimination of staff

After months of cutting costs and maximizing current funding, the New Hanover County Schools superintendent described the district as “out in the parking lot picking up pennies” under its proposed budget.

To make up for a shortfall caused by lower state and federal funding, Superintendent Charles Foust and Interim Chief Finance Officer Ashley Sutton outlined a request for $15 million from the board of county commissioners, money to be allocated over the next three years.

The proposed budget, debated Tuesday night during May's New Hanover County Board of Education meeting, includes a pay increase for classified staff, like teaching assistants, to a $16 an hour minimum wage, which Sutton claims would average out to a 40% raise.

But even if the district got all $15 million it's asking for from the county, by 2024-25, it could face a deficit that would require cutting more than 260 staff members as federal COVID-19 relief funds run out.

"It’s not like we would sit back and wait,” Sutton said, explaining that a proactive approach to staffing cuts could lessen the future blow.

This comes as New Hanover County also faces a loss in state and federal funding due to a 3.2% decrease in projected enrollment for the coming school year. The state and federal governments provide the district funding per pupil.

As currently written, the budget would ask county commissioners for $15 million over the next three years to offset losses at the state and federal levels. The district also eliminated 32 teaching positions for the coming school year.

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Last week, the commissioners held a budget workshop and indicated that they may not approve the school district's ask. They said they wanted to know how the district was using already-existing funds from COVID relief before approving any additional local funding.

On Tuesday Foust and Sutton provided more details on the COVID relief to the school board.

The board will reconvene Friday to continue budget debate, including the issue of a $16 minimum or a $17 minimum pay increase for classified staff and how the pay scale might work. The board also asked them to look at one-time bonuses for classified staff through COVID relief funding.

Board member Judy Justice had mentioned on several occasions previously she felt the board should ask for funds through the sale of New Hanover Regional Medical Center to support raises for classified staff.

County Manager Chris Coudriet told the board during Tuesday’s meeting that staff raises were not within the set intentions of the $300 million Revenue Stabilization Fund through the hospital sale.

Justice pushed back that the Great Resignation currently happening across the country should be considered an emergency, potentially creating a way to access the funds.

Coudriet said the district is not entitled to the funds unless it’s approved by a supermajority, or four out of five county commissioners.

Several board members said they felt the proposal was unethical and irresponsible, noting that with elections coming up, the board doesn’t know who will be sitting on the board of commissioners in three years when the COVID relief funding runs out.

Board member Stefanie Adams said she could not support a budget that would result in a reduction of over 200 employees. “I’m not going to do it," she said.

The potential loss of 260 staff members wasn’t the only concern among board members. The proposed budget for the 2022-23 school year included cutting several already-vacant staff positions, including the Equity, Diversity and Inclusion Director, a position added by Foust in recent months.

Former-Deputy Superintendent LaChawn Smith was named the district’s first Equity, Diversity and Inclusion Director in January, but announced her retirement only two months later. She officially stepped down from the position May 1.

Foust said during Tuesday’s meeting he and Sutton eliminated all vacant positions to meet the asks of the board in the proposed budget. That included getting rid of the vacant position previously held by Smith. But several board members said they couldn’t afford to lose the new equity director.

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"We do this, and it kind of says the district doesn’t care about the work we’ve been doing,” said Board Vice Chairwoman Stephanie Walker.

By eliminating the director position, the district would also eliminate its office and support staff, freeing up around $500,000 to go toward the $12 million for classified staff raises.

Foust said after scrubbing the budget to come to a reasonable ask for funding from the county, the district simply could not afford to keep the equity director position while also implementing a new salary schedule for classified staff as the board had previously requested.

“I promise you, I get it,” Foust said. “I don’t think the board gets what they’re asking us to do.”

The board will reconvene 10 a.m. Friday to look at other budget options and select one to present to the board of county commissioners.

Reporter Sydney Hoover can be reached at 910-343-2339 or shoover@gannett.com.

This article originally appeared on Wilmington StarNews: Proposed New Hanover schools budget could leave some staff behind