PENDER COUNTY — After resolving a multimillion-dollar budget shortfall in June, Pender County Schools is once again tightening its financial belt. This time the district needs to absorb a $1 million gap caused by state-mandated teacher raises and bonuses that exceeded district projections, along with cuts to federal Title I funding.
Pender County Schools faces a $1-million funding shortfall as the state budget allocated on average 7.8% in teacher raises, with new teachers expected to get a 17% raise and veteran educators receiving 5%. The state also has included bonuses, ranging from $500 to $1,750.
The county did not budget for bonuses nor for salary increases as high as 17%. The district budgeted an 8% flat increase for teacher salaries only.
READ MORE: NHCS faces $2M deficit due to state budget’s higher-than-anticipated teacher raises, bonuses
ALSO: Pender County Board of Education secures funding to retain all positions after joint meeting
The new funding gap comes after the district resolved an initial $2.7-million budget deficit in June. Pender commissioners, at first, only agreed to dole out $1.3 million of the $4-million request in additional funding from last year’s school budget. However, last month they came back to the table for a joint meeting with the school board, with commissioners agreeing to fund the rest, as paid for from the county’s fund balance.
Board of Education member Beth Burns asked during Tuesday’s meeting if the board would need to go to the county commissioners to ask for additional funds in light of the state budget’s passing. Chief Finance Officer Lisa Nowlin did not expect the need to arise.
“We have made a plan for that $4 million to be enough with some adjustments based on the budget,” Nowlin said.
Schools spokesperson Bob Fankboner told Port City Daily the district does not expect any cuts to staff or student services, but there will be changes at the district level, such as vacant positions not being filled and repurposing other roles.
“Other affected positions are being posted as one-year contracts while the district continues evaluating its long-term funding outlook,” Fankboner added.
Based on Port City Daily reporting last month on the school budget shortfall, at the time 21 central office positions were not filled, including 10 EC positions. Also, facing cuts were instructional coaches and beginning teacher development support roles.
Previously, to make up for the lack of county funding, the district presented a recommended 25% decrease in substitute funding, resulting in a cost-savings of $625,000.
While the state budgeted an average salary increase of 7.8%, new teachers are expected to get a 17% raise, with veteran educators receiving 5%. The majority of teachers paid through county funds are beginner teachers, which means the largest percentage, at 17%, falls to the district. Typically 15% of district funding is provided by the county, 25% by the federal government and 60% by the state.
“PCS is still reviewing the newly enacted state budget, so the funding breakdown for the current fiscal year may change,” Fankboner said.
During fiscal year 2025-2026, Fankboner added 77% of the payroll, or $6.9 million, comes from the state, and 23%, or $2.1 million, comes from other funding. This makes up a $9-million monthly payroll.
Bonuses in the $34-billion state budget also include $1,750 for school custodial and nutritional staff, $1,000 for other certified school staff and assistant principals who have 16 years or more of experience, and $500 for those with 15 years or less of experience.
“You could say, ‘OK, it’s bad we haven’t had a state budget because we haven’t been getting money for benefits,’” Nowlin said during Tuesday’s meeting, “but they passed the state budget [after more than two years without one], where we have the lower end of the beginning teachers are getting a 17% increase in salary. So for us, we only have a certain number of those in our budget.”
Nowlin added that with the increase, combined with bonuses, the district has to come up with extra funding for their federal, local and grant-paid employees.
Aside from salary increases and bonuses impacting the district’s $33.7 million budget, Director of Student Services Leanne Radabaugh also pointed out Tuesday the district is facing cuts by the federal government to federal programs such as Title I, which provides extra money to schools with high rates of low-income students.
There is an 8% reduction, while the program has approximately a 20% cost increase. Costs have risen with salaries and benefits, something schools across the state have been facing as the state budget raised the amount schools needed to put into employee retirement accounts to 26.1%.
Title I, Part C, the Migrant Education Program, has had decreased funding, with a deficit of 30%. The MEP provides services such as school supplies and tutors for children. Pender County Schools have maintained a steady number of 50 migrant students throughout the years.
Radabaugh said during the meeting that Pender County typically receives $100,000 for this program. For the upcoming 2026-2027 school year, the district was awarded less, at $68,000. Though shearing student services is not expected; the goal is to cover the deficit with carry-over funds — budgeted money leftover from the previous year. Pender County has not yet confirmed how much carry-over is available.
“We try and plan for the rainy day,” Radabaugh said. “We know that cuts are coming and so we’re already looking at how we’re gonna fill the gaps next year, and we haven’t even started this year yet.”
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