[Updated 1/22/25] Durham Schools Facing $7M Budget Shortfall

[Editor's Note: This article was updated with the revised date of the monthly meeting of the Board of Education, which was postponed due to expected road conditions due to weather.]

The Durham Public Schools Board of Education will confront the daunting challenge of coping with an estimated $7-million budget shortfall for the current fiscal year due to underbudgeted expenses and rising costs in multiple areas.

"Our most pressing challenge is ensuring the financial stability of the district," wrote Superintendent Dr. Anthony Lewis in a letter to DPS families and community leaders. "In the critical interest of accountability, transparency, and rebuilding trust in this district, I am committed to an honest accounting and reporting of our budget with regular opportunities for public input and clear explanation from our team."

The district's new chief finance officer, Jeremy Teetor, has spent the last two months studying the DPS budget. Initially, DPS officials say, the team found a much larger shortfall but managed to shrink it by taking pre-emptive measures. Teetor is expected to provide regular budget updates to the board, starting with the Jan. 28 meeting next Tuesday.

What They Found

Among the findings of Teetor and his team so far:

• 315 positions (247 vacant) unaccounted for in budgeting for 2024-2025 expenditures, representing $18.6 million in unbudgeted funds.
• Charter school payments for 2024-2025 underbudgeted by $9.7 million.
• Child nutrition shortfall of $3 million due to new food sourcing/preparation process.
• An incorrect estimation of the number of classroom teachers who would require master's pay, resulting in a need for $1.3 million more than expected.
• Rising costs of utility and waste management, which came in around $1 million.
• Budget didn't include $875,000 for arts supplements (for band directors, assistant directors, and some art teachers), bus driver attendance bonuses, insurance costs, and mileage reimbursements for teachers serving homebound students.

As the 2024-2025 school year started, the district began withholding 15% of every school and departmental budget to address shortfalls, yielding about $26.4 million. DPS also identified $1.1 million in state funding to add to that relief.

Other Actions in the Works

• Continued monitoring of lapsed salaries and benefits from vacancies.
• Reviewing each vacancy for necessity.
• Restructuring DPS central office departments.
• Performing a complete audit with an accurate fund balance figure.

The superintendent also announced a multi-part series called "Dollars and Decisions: Understanding and Navigating the Durham Public Schools Budget," which is expected to explain where the district gets its money and how spending decisions are made. Lewis indicated that he wants families with children attending DPS to stay informed and become actively involved.

"Your input will be crucial to the development of the 2025-2026 school year budget and beyond, so it will be extremely important that we hear from you as we work together to build a solid document that can be used to operate a solvent and thriving school district," he wrote. "A financially healthy district directly impacts our students, classrooms, and staff."

He urged families to share thoughts in writing with him and the Board of Education, to attend board meetings and budget hearings, and to advocate for schools by communicating budget needs to local leaders and state politicians.

"In order to achieve our budget goals, it will be necessary to implement changes, and your questions, concerns, and ideas are crucial to this process," Lewis wrote.

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