Budget Information from Gaston County Schools

With a commitment to fiscal responsibility, Gaston County Schools has an obligation to operate with the funds that are provided by local, state, and federal sources for the 2026-2027 academic year.

Our school system has experienced financial constraints because of several factors, including:

• the lack of a comprehensive state budget for 2025-2026; 
• a $7.2 million reduction in “Low Wealth Supplemental Funds” from the state; 
• higher operational costs in recent years due to inflation; and 
• the end of federal ESSER funds provided during the COVID-19 pandemic.

Gaston County Schools is the second largest employer in the county with more than 3,800 full-time and part-time employees – a significant amount of the school system’s operating funds are used to pay salaries and contribute to employees’ health and retirement benefits.

Most employee salaries, including classroom teachers, principals, assistant principals, and student support personnel, are paid by the state (often referred to as the “state allotment”); salaries for other positions are paid through local funds from the county, funds from the federal government, and funds obtained through grants, contributions, and other sources.

What is meant by “state allotment?”
For each school year, the N.C. Department of Public Instruction allots a certain number of positions based on student enrollment.  

For years, Gaston County Schools, like other school systems in the state, has allowed for positions beyond the number allotted by the state to help meet students’ needs and support academic and other programs – these additional positions have been paid for through local funds (funds provided by the county) and other sources.  Not enough funds and higher operational costs have made it difficult to sustain the additional positions; however, these positions are needed to effectively support all of the work that is expected of school systems.

For 2025-2026, Gaston County Schools took steps to better align the number of positions with the state allotment by reducing 69 school-based positions.  At the same time, the central office was reduced by 34 positions and the assistant principal allotment was reduced by 1.5 positions.

When budget constraints happen
Whenever a business or organization faces budget constraints, the business or organization has to make the difficult decision to decrease its workforce, which usually is its most significant expense.  Sometimes, public agencies like school systems have to make such decisions.  For each budget year, the Board of Education approves Reduction in Force (RIF) procedures; this is a standard practice by the Board in case a RIF is needed during the year due to financial constraints.

Why a Reduction in Force (RIF)?
Gaston County Schools has implemented a RIF ahead of the 2026-2027 year.  Doing so will help the school system decrease spending and stay within budget while being able to cover payroll and pay for operational expenses such as utilities, supplies, transportation, etc.  The RIF helps with better alignment of employee positions with the number of positions that are provided and paid for by the state.  

State allotment for 2026-2027
Our state allotment for 2026-2027 includes 1,425 teacher positions compared to 1,490 state-allotted teacher positions for 2025-2026.  The state allotment also provides principal, assistant principal, and student support personnel positions.

Position Category                        State Allotment 2026-2027    
Principals:                                      56 positions (1 per school)
Assistant Principals:                     6 positions        
Teachers:                                        1,425 positions        
Student Support Personnel*       141.5 positions

* Student Support Personnel includes counselors, social workers, nurses, and media specialists/librarians

In addition to the positions funded by the state, Gaston County Schools still plans to use more than $8 million in funds from local, federal, and other sources to employ employees beyond what is provided in the state allotment – this is being done to help meet students’ needs and support academic and other programs.  For example, local funds will be used for 50 assistant principal positions since the state pays for only six assistant principal positions; local funds also will be used for 27.5 teacher positions above the state allotment.  

Alignment to state allotment
To better align positions with the state allotment, Gaston County Schools is anticipating the reduction of 174 school-level positions and 11 central office positions for 2026-2027.

The 174 reduction of school-level positions includes:

• 80 teacher positions
• 13 assistant principal positions
• 72 student support personnel positions
• 5 Clerical Personnel
• 4 Custodial Personnel

Placement of employees affected by RIF
Work is on-going by our Human Resources staff to support the employees affected by the RIF for 2026-2027.  Placement of employees in other positions is likely since the school system expects to have a number of vacancies due to retirements, resignations, non-renewal of contracts, etc.   

As of May 8, all teachers with a “clear” teaching license, all teacher assistants, and all clerical personnel affected by the RIF have been offered placement in another position.  Human Resources is working with five school media specialists/librarians and 19 school counselors as well as other employees on placement.

RIF process began in 2025-2026
The process to better align employee positions with the state allotment actually began ahead of the 2025-2026 year.  At that time, 84.5 school-based and central-level positions were reduced (most of the eliminated positions were vacant teaching positions, and any employee in an eliminated position was offered another position).

Central office reductions
Reduction in Force (RIF) procedures also have applied to the central office.

Over the past two years (July 2024 - July 2026), a total of 45 central office positions were eliminated, which is a 19% reduction of the central office workforce.  The following positions have been eliminated or will be eliminated by July 1, 2026 (due to RIF, retirements, and resignations):

Academic Services    
Director, Secondary Curriculum
Director, Middle School Curriculum
Budget Analyst, Secondary Schools
Director, Pre-Kindergarten
Compliance Lead, Pre-Kindergarten
Behavior Support, Pre-Kindergarten
Health and PE (School Health Advisory Council - SHAC) Coordinator
Director, Academically and/or Intellectually Gifted (AIG)
Facilitator, Academically and/or Intellectually Gifted (AIG)
New Teacher Support Facilitator
LETRS (Language Essentials for Teachers of Reading and Spelling) Coordinator 

Communications/Public Information
Director, Business Partnerships
Administrative Assistant (½)

Finance
School Finance Specialist
Accounting Specialist

Human Resources
Beginning Teachers Support Coordinator
Director, Personnel Management Systems

Operations
Administrative Assistant
Safety and Security Specialist
Workers Compensation Coordinator
Operations Manager, Facilities
Project Manager, Facilities

Student Support Services
Director, Counseling
Director, Social Work
Director, Student Wellness
Mental Health Clinician
District Behavior Liaison
Behavior Specialist
MTSS (Multi-Tiered Systems of Support) Coordinator
Mediation Coordinator
Alternative Education Transition Support

Superintendent
Chief of Staff
Associate Superintendent (will be replaced with a Chief Financial Officer)

Technology
Network Systems Manager
Media Assistant
Oracle Technology Coordinator
Administrative Assistant
Digital Learning Facilitator (11 positions)
            
Additional cost-cutting measures
In addition to reducing the size of its workforce, the school system is:

• Taking a conservative approach to spending and hiring (with additional oversight and approval processes in place) and reserves the right to implement a spending and/or hiring freeze in 2026-2027, if necessary.  A hiring freeze at the central office level will remain in place with the exception of hiring a Chief Financial Officer, School Nutrition Director, and Secondary Curriculum Coordinator for English/Language Arts.
   
• Eliminating duplicate resources/services/programs and resources/services/programs that are no longer in use or have a high demand.
   
• Examining the use of all school facilities to ensure maximum use with consolidation, grade level shifts, combining of resources, and school closings as options.
   
• Reducing operational costs for the Teacher Resource Center (the building has been declared surplus, is for sale, and will be vacated in 2026) and capitalizing on the use of space available for central-level department offices at the former Forest Heights Elementary School and the former Armstrong Athletic Club building, which was donated to the school system.
   
• Evaluating the sustainability of events, competitions, ceremonies, etc. that are not sponsored by a business, company, or organization.

In budget discussions, what is meant by capital funds and operating funds?
School funds are grouped into two main categories – operating funds that are used to operate the school system (paying for salaries, utilities, supplies, transportation, etc.); capital funds are used for building maintenance (renovations and repairs) – the school bonds are considered capital funds.  The funds are not interchangeable – operating funds should not be used for capital expenditures and capital funds/school bonds should not be used for operating expenditures.

In February, the county commissioners approved the transfer of $3.2 million from capital funds to operating funds – the $3.2 million was generated from interest on the county capital funds; the interest could be transferred to use for operating expenses.

In March, the county commissioners approved the transfer of $10 million in county funds to Gaston County Schools’ operating fund to help cover payroll and expenses for the remainder of the 2025-2026 fiscal year.  Click here to read our news release.  

In accordance with state law, Gaston County Schools was required to pay a portion (approximately 12%) of the $13.2 million in additional local funding to charter schools.  

What about funds from the North Carolina Education Lottery?  
Funds provided to Gaston County from the North Carolina Education Lottery are used by the county to pay the debt on school bonds. While the schools and students in Gaston County benefit from lottery funds, the school system does not receive an actual check from the lottery. 

This information was posted on May 13, 2026.

Gaston County Schools introduces consolidation-related measures

Efforts maximize resources, reduce duplicated personnel, and save money

In an effort to maximize resources, reduce duplicated personnel, and save money, Gaston County Schools has introduced consolidation-related measures that affect eight schools: Gaston Early College High School, Gaston Early College of Medical Sciences, Gaston Virtual Academy, McAdenville Elementary School, Stuart W. Cramer High School, Cherryville Elementary School, W.B. Beam Intermediate School, and John Chavis Middle School.

The measures, which are outlined below, come at a time when Gaston County Schools is working to reduce spending, better align employee positions to the state allotment (positions paid for by the state), and use supplies/materials wisely amid budget constraints.  

■ Gaston Early College High School and Gaston Early College of Medical Sciences

While Gaston Early College High School and Gaston Early College of Medical Sciences will continue to operate as separate schools on the Gaston College campus in Dallas, they will share resources and personnel to improve operational efficiency.

For example, the two schools will share a Spanish teacher rather than each school having a Spanish teacher; the two schools will share a testing coordinator and a counselor rather than each school having a testing coordinator and a counselor.  Further, the schools will maximize class size, better align staff with the academic programs/classes offered, and share resources.  

The estimated cost savings are $120,000.
 
■ Gaston Virtual Academy (McAdenville Elementary School and Stuart W. Cramer High School)

The Gaston Virtual Academy (GVA) will be housed at McAdenville Elementary School for grades K-5 and at Stuart W. Cramer High School for grades 6-12.  Currently, the virtual school is located at the former Forest Heights Elementary School, which is primarily used now as office space.

Students will continue to learn online; however, they will be able to attend special events at McAdenville and Stuart W. Cramer to give them a sense of belonging to a traditional school community.  GVA teachers will be involved in professional development with McAdenville and Stuart W. Cramer teachers to strengthen staff collaboration and engage in meetings about grade-level curriculum and subject content.

Further, GVA will be able to eliminate duplicated resources and rely on staff at McAdenville and Stuart W. Cramer to support day-to-day operations rather than having staff (such as clerical, student support, etc.) dedicated just to GVA.

The estimated cost savings are $50,000.

■ W.B. Beam Intermediate School (Cherryville Elementary School and John Chavis Middle School)

Three options related to the potential closing of W.B. Beam Intermediate School and its consolidation with Cherryville Elementary School and John Chavis Middle School were presented to the Board of Education during the operations and curriculum and instruction committee meetings on May 4.

The three options are:

■ OPTION A: Closing Beam Intermediate, which currently has 180 students in grades 4-5, and adding the fourth grade to Cherryville Elementary School and the fifth grade to John Chavis Middle School.  

This option would place an estimated 418 students in grades K-4 at Cherryville Elementary School (there are 348 students now in grades K-3, which would be the students in grades 1-4 next year; an additional 70 students are anticipated to be in kindergarten next year).  An estimated 462 students would be in grades 5-8 at John Chavis Middle School next year (there are 180 students now in grades 4-5 at W.B. Beam Intermediate and 259 in grades 6-7 at John Chavis Middle School; a small number of current fifth-grade students at Tryon Elementary School are assigned to attend John Chavis Middle School).  

Cherryville Elementary’s student capacity is 500, and John Chavis Middle’s student capacity is 619.  Space is available at Cherryville Elementary for the fourth grade, and space is available at John Chavis Middle for the fifth grade.  Currently, Cherryville Elementary’s student capacity is at 69.6% capacity, and John Chavis Middle’s capacity is at 63.8%.

■ OPTION B: Closing Beam Intermediate and adding the fourth grade to Cherryville Elementary School and the fifth grade to John Chavis Middle School; parents who do not want their rising fifth grader attending John Chavis Middle School would have their student assigned to Tryon Elementary School for the fifth grade.

■ OPTION C: Closing Beam Intermediate and adding the fourth and fifth grades to Cherryville Elementary School.

This option would place an estimated 500 students in grades K-5 at Cherryville Elementary School (100% student capacity); the one pre-kindergarten class at Cherryville Elementary would be relocated to Tryon Elementary School to free up classroom space.

The proposed closing of W.B. Beam Intermediate would save money related to personnel/salaries, supplies/materials/equipment, and utilities.  The estimated cost savings are $288,000.

Additional Information
The measures affecting Gaston Early College High School and Gaston Early College of Medical Sciences and Gaston Virtual Academy (McAdenville Elementary School and Stuart W. Cramer High School) do not need approval from the Board of Education and will move forward for the 2026-2027 year.

Since the options related to Cherryville Elementary School, W.B. Beam Intermediate School, and John Chavis Middle School involve the potential closing of W.B. Beam Intermediate, a public hearing and action by the Board of Education are required.  A date for a public hearing is to be determined.  If approved by the Board of Education, W.B. Beam Intermediate would close after the completion of the 2025-2026 fiscal year. 

The information shared at the operations and curriculum and instruction committee meetings will be presented during the Board of Education’s regular monthly meeting on May 18.  The operations committee voted on May 4 to continue with studying the feasibility of consolidation.

Click here for the presentation to the Board of Education committees on May 4.
Click here for the School Consolidation Feasibility Information.
Click here for N.C. General Statue 115C-72.
Click here for School Closing Procedure - Relating to the Public Schools of North Carolina, January 2019. 

This information was posted on May 6, 2026.
 

Morgen A. Houchard, Ed.D.
March 25, 2026

Hello, parents and employees.  I would like to begin by thanking you for all that you are doing to support our students to ensure a productive spring semester.  I am encouraged by what is taking place in our classrooms, and I realize that our students are being successful because of you.

Tuesday evening, I had the opportunity to speak before the Gaston County Board of Commissioners about our current financial situation.  Unfortunately, like other school systems in the state, Gaston County Schools has experienced a serious budget deficit for the 2025-2026 school year.  Four main factors have contributed to our budget issues.

Factors that have contributed to our budget issues

• The N.C. General Assembly still has not approved a comprehensive state budget for the 2025-2026 year – this has created a critical level of financial uncertainty for school systems.
   
• In September 2025, Gaston County Schools experienced a $7.2 million reduction in “Low Wealth Supplemental Funds” from the state.
   
• Inflation has increased significantly, which has resulted in higher costs to operate the school system.
   
• Millions of dollars in ESSER (Elementary and Secondary School Emergency Relief) federal funds ended in September 2024.  The funds provided necessary support and services for schools during the COVID-19 pandemic.

County commissioners approve $10 million in additional funding
We are very pleased to announce the approval of $10 million in funds by the Gaston County Board of Commissioners to address the school system’s current budgetary constraints.  The commissioners voted unanimously to approve the funds Tuesday evening.

The funds will be used to cover current operational expenses and payroll for the remainder of the 2025-2026 school year (April, May, and June).  With the additional money from the county commissioners, we are able to avoid making difficult decisions related to layoffs, furloughs, and the reduction of our current workforce for the 2025-2026 school year.

Without question, we are extremely grateful for and appreciative of the county commissioners’ assistance to support our schools.  The commissioners worked with us to gain an understanding of our budgetary issues, and they were quick to respond because they know the importance of our schools to this community.  

The commissioners stepped up in a big way to support Gaston County Schools, and because of their willingness to help, we will not have to face the difficult decisions that were looming over us.

What we are doing moving forward
As we move forward and plan for the 2026-2027 school year, we are:

• Continuing for now the hiring freeze and the spending/purchase freeze, which are responsible, cost-saving measures;
   
• Implementing a better, multi-layer process for aligning positions with the state allotment for the 2026-2027 school year;
   
• Ensuring that a similar budget situation does not happen again by providing more oversight for finance; making substance-based decisions using current, verified data rather than forecasts or predictions; taking a conservative, fiscally-responsible approach to all financial matters; and being more transparent about budget-related issues through periodic updates for stakeholders; and
   
• Working to strengthen our partnership with elected leaders and local and state officials to discuss future funding for schools.

Thank you for your continued support
We sincerely appreciate your support, patience, and understanding as we navigate difficult budget issues.  I want everyone to know that we are committed to making sure that we are operating within our state-allotted funds and that we are making sound financial decisions with the money that is allocated for Gaston County Schools from the local, state, and federal levels.

Again, thank you for being an advocate for our schools.  I am confident that with all of us working together, we will have a strong finish to the school year and enjoy celebrating the many successes of our schools, students, employees, and graduating seniors in the Class of 2026.

Click here for the news release.

Effective Date: March 1, 2026 for the remainder of the 2025-2026 fiscal year (through June 30, 2026)

Due to our current budget constraints and the need to ensure fiscal responsibility, Gaston County Schools is implementing a spending/purchasing freeze for the current fiscal year under the following criteria:

The district is placing a freeze on the following expenditures:

• Instructional and office supplies
• Equipment and software purchases
• Conferences and workshops
• Stipends
• Professional development registration and associated travel
• Food purchases (including meals, refreshments, and catering)
• Extracurricular activities

Purchase orders will not be approved for the above categories unless specifically exempted under the criteria below.

Expenditures may be allowed only under the following circumstances:

• Items that were properly approved and fully encumbered in the financial system on or before February 28, 2026
• Finance Department-approved essential expenses
• Certain critical expenses deemed essential by the Superintendent (or an associate or assistant superintendent) and the Finance Department. These may include, but are not limited to:
  • Contractually-obligated payments
  • Legally-required expenditures
  • Grant-funded items (ex: Exceptional Children, ASPIRE, etc.)
  • Toshiba
  • Essential Items and services
  • Expenses paid with school funds

Any exceptions must be approved in writing by the Superintendent (or an associate or assistant superintendent) and sent to the Finance Department.

Hello, employees.  Please take a moment to read this important information.

As you may know already, a number of school systems across North Carolina are experiencing budgetary constraints – Gaston County Schools is not immune to this unfortunate situation.  Further, not having a state budget has created uncertainty about what state funds will be made available to school systems, once the N.C. General Assembly approves a budget.

Our budget-related concerns are related to the following:

■ Gaston County Schools has experienced a reduction in “Low Wealth Supplemental Funds” – this is money provided by the state to school systems in counties that do not have the ability to generate enough revenue to support public schools at the state average level.  Our reduction is $7.2 million – this is a result of the most recent property tax valuation, which makes Gaston County wealthier, and therefore, based on a legislated formula, Gaston County Schools is not entitled to the same amount of “Low Wealth Supplemental Funds” that was provided in previous years.  

■ Gaston County Schools, like other school systems, has experienced a reduction in the number of students (about 400) when comparing the 2024-2025 school year to the 2025-2026 school year.  The state allocates funds per student, and having 400 fewer students will have an impact on our budget for 2026-2027.  

These two factors – combined with no additional funds to address inflation as well as higher costs for employer-paid benefits (such as health insurance and retirement for employees) – have created budgetary concerns for Gaston County Schools.  

Therefore, Gaston County Schools has made a difficult, yet fiscally responsible decision to implement a temporary hiring freeze, effective immediately and until further notice.  Positions that are deemed critical/high priority or required by state legislation may be filled with approval from Human Resources.  For example, bus drivers and positions in the area of exceptional children are considered critical.  The hiring freeze applies to all schools and central office-level departments.

We realize a hiring freeze places a staffing hardship on the school system.  However, it is necessary at this time to ensure that we can continue the employment of our current employees.  We are committed to supporting our current employees, and school system leadership will work to develop strategies that lessen the burden of the hiring freeze as much as possible.

Thank you for your continued good and important work for Gaston County Schools; we value and appreciate your diligent efforts every single day, and we are proud to have you in our school family.