This message was sent to all CHCCS staff and families on Thursday, August 22, 2024. It is an update to our July 19 and Aug. 16 communications on the district’s financial situation.

Wednesday night, at a Special Call meeting of the Board of Education, the Board made a difficult decision to approve the next two tiers of district administration’s plan to address our current budget situation. The plan is explained in detail in these presentation materials, but in short, it:

• Calls for cuts to 24 full-time central office positions, effective immediately, with impacted staff being reassigned to open positions elsewhere in CHCCS.

• Calls for the reorganization or restructuring of additional school-based positions by the end of the 2024-25 school year.
  
  

Why is this happening? Today CHCCS is a district of approximately 11,000 students, but we are still staffed for our pre-pandemic enrollment of more than 12,000 students. Given the realities of per-pupil funding formulas, inflationary factors and more, we are working to restructure our school district for long-term financial sustainability. Answers to other important questions are included at the bottom of this message (We also recommend that you watch and listen to the entire discussion, which we’ve posted to our YouTube page.)

Like you, we too understand how heartbreaking of a situation this is for so many caring and dedicated staff who are impacted. Please support one another as we navigate this most difficult time, as we reshape in order to deliver on the promise of a Chapel Hill-Carrboro City Schools education.

Sincerely,

George W. Griffin, Ph.D., Board Chair

Riza Jenkins, J.D., M.B.A., Board Vice Chair

Nyah D. Hamlett, Ed. D., Superintendent

Answers to important questions

Q: What is the main issue? 

A: Since COVID, CHCCS student enrollment has declined by approximately 1,000 students. As a result, we lose state per-pupil funding in excess of $8 million annually. This, coupled with other factors means we are spending more than we are allocated by Orange County and the state of North Carolina. We have advocated for plans to address this foreseeable situation since the fall of 2022.

Q: During this time, did we maintain our staffing at the same or higher levels, even as enrollment was declining? 

A: Yes, because we believe in doing everything we can to preserve the best possible student experience.

Q: As you reported this situation to Orange County in 2022, the Board of Commissioners was directing CHCCS to spend down its fund balance (also known as a “rainy day fund”). What did you spend the fund balance on?

A: We invested in our staff, which comprises approximately 85% of our total budget. 

• We used our fund balance to raise our certified staff supplement rates to be among the highest in North Carolina. 

• We also provided for an additional 2% increase in supplements for all certified staff working with Exceptional Children. 

• Funds were also allocated to increase classified pay providing an average 5.1% beyond the raises that were funded by North Carolina, positively affecting over 550 of our classified staff. 

• We used it to raise bus driver pay to a minimum starting rate of $20/hour in the Spring of 2023 to combat critical shortages.
  
  

Q: What else were you spending the money on? 

A: CHCCS provides staffing and services that far exceed what's funded by the state, or what you will find in neighboring school districts. Also, the cost of insurance, utilities (lights, heating, air conditioning, etc.) and materials are rising just like they are for you at home.

Q: You cut 24 positions from “Lincoln Center”. Why don't you just cut Lincoln Center even more? 

A: Lincoln Center accounts for about 3.3% of total full-time positions in CHCCS, yet the cuts approved Wednesday account for 40% of the total personnel cuts across the district. Despite this disproportionate impact, we reluctantly accept it in order to preserve the classroom experience of our students as best we can. All impacted Lincoln Center staff were offered open positions elsewhere in CHCCS.

Q: Tier Three cuts impact school-based and student-facing positions. What if these Tier Three cuts are not made? 

A: We would anticipate overspending and amassing debt of another $6,000,000 next year.

Q: Doesn’t state law require CHCCS to have a balanced budget? 

A: Yes. We know we're operating at a deficit now. We are working toward balancing that budget.

Q: Is that an immediate problem or a future one? 

A: We feel it is a dire problem right now.

Q: So, what if CHCCS took no action? What's the worst case scenario if we are not fiscally compliant?

A: Paychecks would bounce for every employee in the district. Also, the district would be in violation of state law requiring a balanced budget.

Q: Can’t you cut more of your contracted services? 

A: There are not nearly enough cuts that can be made without severely impacting student services. The top 25 contracted services in FY 2023-24, accounting for approximately $10 million in spending, include custodial services, breakfast and lunch service to feed children (not adults), IEP software, printing and copying, Driver's Education, high-dosage tutoring, School Resource Officers* (*costs which are eventually reimbursed by Orange County as part of a formula where funds are obligated for the specific purpose of school safety), IEP services, visiting international faculty, security, progress monitoring tools and more.

Q: You’ve used the term “RIF” or “Reduction in Force”. Does RIF mean layoffs? 

A: No. In our case, RIF is policy language that can also be used for a restructuring or reorganization. People are offered placement into other positions within CHCCS, and then the vacated positions are cut.

Q: Why would we start the school year in this manner? 

A: We regret that we are at this juncture. The latest information and our resulting actions are tied to the end of the most recent fiscal year, which was June 30. While this demonstrates that the district is taking necessary action in a timely manner, we certainly wish we were starting the school year in a different way.