CMS makes temporary budget adjustments to cover federal funding uncertainty

CHARLOTTE, NC – The Charlotte-Mecklenburg School district is making temporary budget changes as it waits for notification on $12.5 million in federal funding for the 2025-2026 school year.

The district says it is using  using carryover funds from last year by placing a freeze on spending, with cuts focused on external contracts, services, and vacant positions rather than reducing current employees.

The federal money is for Title II, Title III, and Title IV grants.

School districts were supposed to receive official confirmation from the federal government on the amount of money they will receive on July 1st.

While it has not received the funding notifications, CMS Superintendent, Dr. Crystal Hill said, “We are prepared and continue to stay focused on ‘the CMS way,’ which includes our mission, vision, goals, guardrails, and pillars of excellence.”

The temporary measures include the following:

Title II – Supporting Effective Instruction:
Redirected $1.5 million from Central Office operating budget to retain staff
Redirected $1.2 million from Title I carryover funds to retain staff
Cut $2 million from stipends, software, and services

Title III – English Language Acquisition:
Cut $3.3 million from training, curriculum tools, and vacant positions

Title IV – Student Support and Academic Enrichment Grants:
Redirected $115,000 from a vacant position to retain staff
Cut nearly $1 million from services and supplies

“While the temporary plan protects the student experience for the upcoming school year, it is not sustainable beyond 2025-26,” said Chief Finance Officer Kelly Kluttz. “If federal funding is not released, CMS will be required to make $12.5 million in cuts during the 2026-27 budget planning process.”

These reductions would be addressed through the normal budget cycle, which includes public input and stakeholder engagement, leading to the Superintendent’s Budget Recommendation to the Board of Education.