Note: This story has been updated, adding comments by Board member Pat Bradford.
In a memo acquired by WHQR, CFO Ashley Sutton wrote that an analysis of the general fund cash and current spending levels indicated that additional restrictions were necessary to balance the budget for the next fiscal year.
This comes amid ongoing budget negotiations between the New Hanover County Commission and the New Hanover County School Board. Sutton has reported a $20 million hole in the budget from declining federal relief funding, decreasing student enrollments, and increasing employee benefit costs.
Commissioners are meeting at 1:30 at the Government Center this Thursday to discuss the county's portion of the district's funding, among other budget issues.
For the remainder of the school year, reimbursements will stop for out-of-county and in-county travel; exceptions include staff positions split between schools, previously approved field trips, and athletics.
If not already approved with a purchase order, staff development and the purchase of supplies and equipment are canceled for the remainder of the year. They’ll also decline to approve new service contracts. The caveat is that the CFO or the superintendent could approve spending, or there could be an emergency expense due to safety or security.
Sutton then provided another form if they needed to ask for emergency funding.
“Our challenge is great and we are confident that you and your staff can be relied on to help us through these difficult times,” she said.
WHQR contacted the district and school board for additional comments or details.
Board member Pat Bradford wrote to WHQR, "This financial crisis wasn't created overnight; this was created over multiple years and multiple budgets."
She added that the budgets for fiscal years 2022 and 2023 were ones in which annual salaries were funded with "unsustainable revenue. They borrowed from the fund balance every year."
"I have repeatedly warned the day would come when the district ran out of money, if they didn't stop what they were doing and make a plan. When you tell principals they can't buy school supplies that day has come," Bradford said.
