{"id":15615,"date":"2025-01-30T20:28:19","date_gmt":"2025-01-30T20:28:19","guid":{"rendered":"https:\/\/9thstreetjournal.org\/?p=15615"},"modified":"2025-01-30T20:33:40","modified_gmt":"2025-01-30T20:33:40","slug":"durham-schools-7-million-shortfall-what-we-know-so-far","status":"publish","type":"post","link":"https:\/\/9thstreetjournal.org\/2025\/01\/30\/durham-schools-7-million-shortfall-what-we-know-so-far\/","title":{"rendered":"Durham schools&#8217; $7 million shortfall: What we know so far"},"content":{"rendered":"<p><span style=\"font-weight: 400\">Durham Public Schools leaders recently revealed that the district is $7 million over budget. At a school board meeting Tuesday and a press conference on Friday, Superintendent Anthony Lewis and members of the DPS administration shared more information about the budget errors.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Here\u2019s what Lewis and his team are saying about the budget shortfall.\u00a0<\/span><\/p>\n<p><strong><i>How did the district end up $7 million over budget?<\/i><\/strong><\/p>\n<p><span style=\"font-weight: 400\">DPS officials have <\/span><a href=\"https:\/\/go.boarddocs.com\/nc\/dpsnc\/Board.nsf\/files\/DD5UUS7DC9F8\/$file\/REVISED%20Current%20Year%20Budget%20Challenges%201.23.25.pdf\"><span style=\"font-weight: 400\">laid out<\/span><\/a><span style=\"font-weight: 400\"> nine main items that were underestimated, or entirely left out, of the district&#8217;s 2024-2025 budget. These include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">$18.6 million for 315 staff positions that were not included in the budget (a larger figure of $21.1 million, shared by the district last week, included some staff vacancies),<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">$9.7 million for charter school payments,\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">$3 million to cover child nutrition losses,<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">$1.3 million for classroom teacher\u2019s master\u2019s pay,<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">$1.04 million for utilities and waste management costs,\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">$572,000 for arts supplements,\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">$145,000 for bus driver attendance bonuses,\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">$139,000 for insurance coverage, and\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">$19,016 for mileage reimbursements for teachers serving homebound and hospitalized students.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">Altogether, DPS chalked up nearly $34 million in expenses that were omitted from its $691 million yearly budget. Luckily, former Interim Superintendent Catty Moore had recommended withholding a 15% reserve from local operating budgets \u2014 a total of $26.4 million \u2014 during the administrative transition. That amount, combined with $1.1 million in extra funding from the state (which under-projected DPS\u2019 enrollment by 119 students), allowed the district to bring the shortfall down to about $7 million.\u00a0<\/span><\/p>\n<p><strong><i>Where did the $27.4 million funding increase from the county go?<\/i><\/strong><\/p>\n<p><span style=\"font-weight: 400\">Last June, the Durham county commissioners approved a historic $27.4 funding increase for Durham Public Schools.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">At Tuesday night\u2019s meeting, the school system&#8217;s new Chief Finance Officer Jeremy Teetor, who joined the district in November, outlined where the county funds went:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">$4.3 million to charter schools<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">$5.7 million for state-mandated salary and benefit increases<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">$4.5 million for a teacher supplement increase<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">$1.3 million for pay for employees with master&#8217;s degrees<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">$8.9 million to implement new salaries<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">$2 million capital outlay<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">$716,624 for Pre-K<\/span><\/li>\n<\/ul>\n<p><strong><i>What\u2019s going on with child nutrition?<\/i><\/strong><\/p>\n<p><span style=\"font-weight: 400\">Child nutrition has been top of mind for DPS as of late. This year, the district introduced new menu choices that are locally sourced and low on artificial ingredients. The district also opted into the federal Community Eligibility Provision (CEP) program, which provides free breakfast and lunch to all students regardless of their socioeconomic status.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">According to Teetor, child nutrition has been losing money since 2022. He attributed that loss to increases in production costs.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">\u201cOur child nutrition program at this point has exhausted their ability to cover those losses\u2026,\u201d Teetor said. \u201cAnd so I\u2019ve recommended to the superintendent that we reserve $3 million of local funds so that we keep them from going into the negative this year and to keep things as they are while we evaluate how can we continue to do the creative things we\u2019ve been doing for students but in a way that we can handle the production costs.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400\">Teeter also said that the losses are not connected to the new federal CEP program.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">\u201cThat is not a component in this $3 million concern,\u201d Teetor said during Tuesday\u2019s meeting. \u201cAnd so we\u2019ll conduct a separate analysis on has the participation been sufficient to support that change to a more broad CEP program in the district.\u201d<\/span><\/p>\n<p><strong><i>What\u2019s going on with DPS staff salaries?<\/i><\/strong><\/p>\n<p><span style=\"font-weight: 400\">During Tuesday\u2019s meeting, DPS physical therapist Christie Clem asked the board about the money spent to implement new salary schedules for the district&#8217;s classified staff. Classified staff refers to school system workers who are not certified classroom teachers, such as physical therapists, instructional assistants, and transportation workers.<\/span><\/p>\n<p><span style=\"font-weight: 400\">\u201cClassified want to know how was the $8.8 million spent?\u201d Clem asked.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">After last year\u2019s classified staff pay <\/span><a href=\"https:\/\/9thstreetjournal.org\/2024\/02\/08\/durham-schools-payroll-crisis-a-timeline\/\"><span style=\"font-weight: 400\">debacle<\/span><\/a><span style=\"font-weight: 400\">, the district spent almost $8.9 million to implement new salaries based on three different factors: salary recommendations developed last March by consultant Kerry Crutchfield and again this fall by consultant and \u201cGiver of Awesomeness<\/span><span style=\"font-weight: 400\">\u2122\u201d <\/span><span style=\"font-weight: 400\">Eyrie Success, as well as a three percent salary raise from the state.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Teetor said that before he joined DPS, administrative staff were tasked with comparing the three factors to figure out \u201cwhat was the best for each employee.\u201d\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Yet Clem said the raises were subpar.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">\u201cSo many classified folks I talked to got nothing more than the three percent,\u201d Clem said Tuesday. \u201cAnd the newest salary schedules we look at are compressed more than they ever were before any of this stuff started last year.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400\">Also, while $1.3 million of the county funding was spent on master\u2019s pay for classroom teachers, school social workers say they have not received master\u2019s pay.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">\u201c68 days,\u201d school social worker J.B. Hallan said. \u201cIt has been 68 days since Dr. Lewis said \u2018We will deliver,\u2019 when talking about master\u2019s pay for school social workers and other support staff\u2026.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400\">\u201cBy continuing to deny school social workers master\u2019s pay, and other support staff, you are telling us, and the public, that you do not care about the school social work profession.\u201d<\/span><\/p>\n<p><strong><i>How is the district going to fix the shortfall?<\/i><\/strong><\/p>\n<p><span style=\"font-weight: 400\">District leaders did not provide a conclusive plan to clear up the shortfall, but offered insight into their first steps. Teetor said he and his team are monitoring currently vacant positions and evaluating the potential for cutting positions in the central office.<\/span><\/p>\n<p><span style=\"font-weight: 400\">\u201cJust as an example, the finance department collapsed two vacancies and we were able to render about $145,000 in savings so far just with our team,\u201d Teetor said.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Teetor also explained that the finance team is finishing up its audit. Once that is complete, it will guide additional decisions regarding the shortfall.\u00a0<\/span><\/p>\n<p><strong><i>What is the Durham Association of Educators saying?<\/i><\/strong><\/p>\n<p><span style=\"font-weight: 400\">The Durham Association of Educators, the local teacher\u2019s union, quickly registered its disapproval. DAE, which has been calling on the school board to adopt a meet-and-confer policy giving them a seat at the decision-making table, posted a <\/span><a href=\"https:\/\/www.facebook.com\/DAEUnion\"><span style=\"font-weight: 400\">statement<\/span><\/a><span style=\"font-weight: 400\"> on Facebook Saturday objecting to the district\u2019s proposals:<\/span><\/p>\n<p><span style=\"font-weight: 400\">\u201c<\/span><span style=\"font-weight: 400\">Because of another budget mismanagement debacle, it has recently come to light that the district has already effectively cut $26.4m directly from school-level operating budgets this year. These cuts were made without input from staff or the community,&#8221; the statement reads.<\/span><\/p>\n<p><span style=\"font-weight: 400\">&#8220;Now, the district is looking for a further $7m in cuts, potentially through layoffs and taking away positions, in order to balance their books. Make no mistake this district administration is effectively proposing a $33.4m cut to key staff and resources that our students need.<\/span><span style=\"font-weight: 400\">\u201d<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Durham Public Schools leaders recently revealed that the district is $7 million over budget. At a school board meeting Tuesday and a press conference on&#8230;<\/p>\n","protected":false},"author":76,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[16],"tags":[269],"class_list":["post-15615","post","type-post","status-publish","format-standard","hentry","category-schools","tag-the-9th-street-journal","entry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Durham schools&#039; $7 million shortfall: What we know so far - 9th Street Journal<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/9thstreetjournal.org\/2025\/01\/30\/durham-schools-7-million-shortfall-what-we-know-so-far\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Durham schools&#039; $7 million shortfall: What we know so far - 9th Street Journal\" \/>\n<meta property=\"og:description\" content=\"Durham Public Schools leaders recently revealed that the district is $7 million over budget. 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