A tight budget cycle is forcing Charlotte Mecklenburg-Schools to tighten its belt, driven by a loss of federal pandemic relief money and uncertainty at the local, state and federal level.
But teachers could still see a boost in pay — both from a potential increase in teacher supplements and a new bonus program for Title I schools.
On top of uncertainties around potential state revenue shortfalls, questions about federal cost-cutting, terminated federal grants and an anticipated county budget shortfall, federal pandemic relief money is no longer available. That’s the funding from the Elementary and Secondary School Emergency Relief Fund, or ESSER.
Roughly 60% of the district’s ESSER funds went toward salaries and benefits. Last year, the district was able to cover a large portion of that without cutting employees. This year, the district will have to focus on services, supplies and capital funding that the remaining 40% of those funds covered.
Kelly Kluttz, the district's chief financial officer, said the overall tight budget landscape means the district is anticipating some strategic belt tightening.
“As we navigate through all these complexities, we have to get tight on everything, remembering that 75% of our operating budget is salary and benefits,” Kluttz said. “We already started the tightening in our allotment process this year by removing some vacant positions.”
Additionally, the district has identified roughly $5.7 million in recurring funds to cut, delay or seek alternative funding sources — such as grants. That includes about $3.8 million in potential cuts to the central office budget.
The district is also continuing to monitor the latest from the federal government. Kluttz has maintained that the district is assuming federal funding sources — like Title I funds for schools with low-wealth students — could be at risk amid the federal government’s ongoing cost-cutting efforts.
The Trump administration has sought to eliminate the Department of Education and has already cancelled grant programs it says were related to diversity, equity and inclusion. CMS has already seen three federal grants related to teacher development terminated — but Kluttz said on Tuesday the district has appealed the termination of those grants.
Should the cuts be finalized, the district will form committees to assess impact and prioritize needs, Kluttz said.
“We recognize these are difficult decisions and we do not take them lightly,” Kluttz said.
District still eyeing teacher supplement, new bonus programs
But despite those headwinds, the district is still eyeing pay boosts for teachers — including an average 5% increase to the local teacher supplement.
Beth Thompson, the district’s chief strategy and innovation officer, said teachers are “essential” to helping the district meet its academic goals — particularly in Math I and literacy in grades three through eight, where the district is further behind in meeting its benchmarks.
“Our ability to pay, train, develop and retain our high quality teachers is required to meet our goal and guardrail annual targets and to ensure a workforce with stable, sustained skills and competencies for continued future success,” Thompson said.
The budget outline presented to the school board this week factored in a teacher supplement increase that would include a 4% increase across the board and additional 1% increase for teachers with 15 years of experience to support teacher retention, Kluttz said.
“This across-the-board adjustment makes our supplement schedule more competitive, helping us attract new talent by ensuring that our salaries remain aligned with the market,” Kluttz said.
It’s not the final budget recommendation— that will come from Superintendent Crystal Hill later this month.
The budget could also include potential funding for further compensation increases for classified staff. The district just recently raised its minimum wage for some classified staff on the lower end of its pay scale, but is hoping to give raises to more employees for others next year.
The district is also exploring a pilot program that would give teachers at Title I schools bonuses based on improvements in Math I — one of those areas where the district is hoping to see accelerated improvements.
The program would apply to the district’s 14 Title I high schools, giving 32 teachers the opportunity to earn up to $15,000 in bonuses.
Board member Lisa Cline asked if there were contingency plans in place in case Title I funds are cut at the federal level.
“This is a very, extremely small portion of the Title I budget,” Kluttz said. “If our Title I budget was cut, we would have significantly larger problems than this bonus that we would have to deal with in a structured way and determine what’s best for our district at that time.”
Some board members were lukewarm toward the idea. Board member Melissa Easley said she worried the program might create unnecessary competition.
“I just want to make sure that we have an even playing field, and that we aren’t pitting our math teachers against one another because of a financial bonus which every teacher is so desperate to need,” Easley said.
