Cumberland County Schools dips into savings for fiscal year as COVID aid ends

FAYETTEVILLE, N.C. (WTVD) -- Cumberland County school officials said they're dipping into the district's savings as it budgets for next year's expenses. CCS had to make the move because its federal COVID-19 funding ends in September. It's happening as school districts nationwide work to manage budgets with COVID-19 funds drying up.

"Cumberland County schools isn't really necessarily facing a fiscal cliff. We're facing more of a fiscal hill," said Jay Toland, the associate superintendent of business operations for CCS.

CCS officials presented their proposed budget to the county board at a meeting Tuesday night. For the 2024-25 budget, CCS leaders plan to take $21 million from the district's savings to pay for supplies and more than 100 jobs. Those jobs include teachers, social workers, and counselors.

"As part of this recommended 2024-2025 budget, we have earmarked over $21 million from our fund balance to balance this budget, which includes funding for over 100 positions that were ESSER-funded and are imperative to our strategic plan implementation," said Dr. Marvin Connelly Jr., CCS superintendent. "While we are committed to being good stewards of the resources we have, relying on the fund balance as a long-term solution is not sustainable and creates a significant deficiency in future budget years."

Toland, the associate superintendent of business operations for CCS said the district knew this day would come, so it has been bracing for impact.

"Several years ago, when the funding was introduced, was everybody knew that this money was going to go away. So, what's the best way that we can use the money, make sure it's effective, help educate children and then sustain what's working well," Toland said.

The school district has laid out a plan for the next three years to continue to absorb those costs. Of its total proposed budget of $602 million, it's also asking the county to contribute $91 million. That's about $3.5 million more than CCS asked the county for last year.

"We still feel some inflationary pressures, especially on the utility side," Toland said. "There are some state-mandated and well-deserved salary increases that are passed down for our positions that are paid locally. So then we will need more revenue for that."

Budget officials are also expecting that there'll be an increase in the cost of employer-matched benefits for retirement and insurance plans.

At the meeting, Connelly, as expected, recommended that the Cumberland County Board of Education seek a $3.5 million increase in local funding from the Cumberland County Board of Commissioners, bringing the total allotment to slightly more than $91 million.

"We are dedicated to maintaining the current level of services and ensuring sufficient resources for implementing our strategic plan," Connelly said.

The Board of Education will review the recommendations at its upcoming regular meeting on May 7.