Loss of federal funds could spell a difficult CMS budget cycle, district leaders say
Charlotte-Mecklenburg Schools is looking at a “very difficult” budget year, with cuts to federal grants and a tight budget from the county, leaders say.
District leaders discussed the budget forecast Tuesday at a planning meeting, saying they fear all federal grants, which currently fund over 2,100 CMS jobs, are potentially at risk.
The cuts have already started. CMS learned Tuesday a $1.9 million federal grant, which supported professional development for educators, had been terminated effective “immediately.” That included an additional $2.9 million it was slated to receive from the grant next year. Another $200,000 grant was also cut.
The funds cut so far are discretionary grants, usually reserved for specific projects and awarded through a competitive process. They don’t include grants based on formulas outlined in legislation like Title 1, 2 and 3.
In CMS, Title 1 grants largely fund schools with a high proportion of economically disadvantaged students. Title 2 grants address development of teachers and effective instruction. Title 3 funds programming for multilingual learners.
Leaders fear those funds could also be on the chopping block.
“They’ve already begun cutting discretionary grants, but we believe Title 1, 2 and 3 are at-risk as well,” CMS chief financial officer Kelly Kluttz told the Charlotte-Mecklenburg Schools Board of Education. “I think the writing is on the wall. We’re looking at a very difficult budget session.”
CMS currently receives around 9% of its funding from the federal government.
Currently, 2,153 staff members are paid by federal grants — over 10% of the district’s approximately 19,000 total staff.
Title 1 funding at risk
Of the 186 schools in CMS, 105 are Title 1 schools, meaning they have a high percentage of economically disadvantaged students. About 70% of Title 1 funds in CMS are currently used for educator salaries and benefits. The district’s pre-K program is funded by $16.4 million in Title 1 funds.
Kluttz said Title 1, 2 and 3 grants currently fund things like specialists, “a significant amount” of teacher development, “a significant number” of teachers, family engagement and instructional materials.
“If you lose Title 1, you would lose the pre-K program that feeds into all of our schools,” Kluttz told the board. “You would lose specialists that impact all our schools.”
Board members questioned how the loss of federal funds could impact the district’s ability to meet its academic goals.
“It seems like bricks are being taken out of our foundation,” said CMS board member Liz Monterrey Duvall.
District leaders emphasized increasing teacher pay and providing professional development opportunities to educators as their top priorities.
“Our teachers are the key levers to achieving our goals,” said Beth Thompson, CMS chief strategy and innovation officer.
County budget
Mecklenburg County told CMS board members at a joint meeting in January that its budget would be tight this year.
“We’re talking about $49 million in growth revenue to cover anything over and above what we did in fiscal year 2024,” said David Boyd, Mecklenburg County chief financial officer, at the meeting. “Just looking at county employees, that’s about $31 million. … so that’s a challenge.”
This year, about 38% of the county’s general fund — money generated by property and sales taxes as well as other sources — went toward CMS. If the same pattern continues, that figure will be 41% in 2030. A large chunk of that goes toward supplementing teacher pay.
CMS Superintendent Crystal Hill told the board Tuesday she plans to recommend an average teacher supplement increase of 5%, which would cost the county around $8 million.
“I’m laying all my cards out on the table early,” she said.
However, some board members pushed back, advocating for a higher supplement.
“I think this board needs to ask for more,” board member Summer Nunn said Tuesday. Nunn said she believes the state and county both should allocate more money to teacher pay.
Namely, Nunn is seeking an average supplement increase of 8%, which would cost the county an additional $4 million.
Hill will present her official budget recommendation to the CMS board in March.
This story was originally published February 18, 2025 at 10:02 PM.
