Federal lawmakers in Congress recently passed a spending plan that would maintain funding levels for federal education programs that many school districts feared could get cut. But that won’t change how Charlotte-Mecklenburg Schools plans to shape its budget this fiscal year.
CMS Chief Finance Officer Kelly Kluttz called it a best-case scenario for the district. CMS had been estimating that some Trump administration proposals could lead to up to 60% in cuts in Titles II, III and IV funding. But while those cuts aren’t on the table for now, Kluttz said the district still plans on spending as if the cuts were in place, to create a safety net.
“We’ve already made adjustments to that budget, anticipating that potentially 60% cut, so we’re not going to go back to our previous thinking and operating because those adjustments have been made.”
CMS held back on allocating some of its federal funding last budget cycle to anticipate potential cuts.
“Our approach will be to retain as much carryover as we can for a safety net,” Kluttz said. “That approach worked very well for CMS this year, so we were not in a position where we had to do a reduction in force if they did take the federal funds from us.”
The Trump administration has previously cut already-allocated grants, frozen funding streams and is working to dismantle the Department of Education, which has raised questions about the future of federal education funding.
There are other budgetary challenges ahead. Federal funding only accounts for 6.1% of the district’s operating funds. The largest share comes from the state, at around 55%. This year’s funding will likely be impacted by CMS’ recent enrollment drop. The district is already planning on hiring 200 fewer employees this year.
The remaining slice of the funding pie comes from Mecklenburg County, which is facing its own potential budget deficits. Superintendent Crystal Hill will create budget recommendations for county funding in April. If approved by the school board, the county will consider it in May.
