The North Carolina Department of Public Instruction and state Board of Education on Thursday announced a review into Charlotte-Mecklenburg Schools amid the district’s ongoing turmoil.
In a joint statement, state board chair Eric Davis and state Superintendent Mo Green said that the "alleged financial irregularities within transactions involving Charlotte-Mecklenburg Schools are serious and warrant careful review."
It's the latest investigation into CMS' finances. The district is also facing a probe from the state auditor and a criminal investigation from the State Bureau of Investigation, as more than half of its top administrators have announced their retirements in the past several weeks and the board fired superintendent Crystal Hill last month.
“We expect full cooperation from local officials as this review proceeds,” Green, a Democrat, said at the state education board's Thursday meeting. “If the facts establish violations of state fiscal requirements, the state Board will take whatever actions are authorized and necessary to protect public funds and uphold public confidence in North Carolina’s public schools.”
State law says the state Board of Education has the authority to require local districts to report financial information. If school districts don’t comply, the board can issue a warning and then suspend local spending discretion. Ultimately, the state can assume complete control of a school district's budget, expenditures and finances through an appointed administrator.
CMS is the biggest school district in the state, with a $2.1 billion operational budget.
DPI and the state board also said they will work with CMS leadership to ensure continuity amid the ongoing leadership transition prompted by Hill’s firing last week.
It comes after Hill alleged in an explosive memo that board member Stephanie Sneed was secretly routing money to a controversial ex-CMS consultant, Raki McGregor, without her or most of the board’s knowledge via contracts worth tens of thousands of dollars a month.
Sneed subsequently stepped down from her role as chair. The same night, the board fired Hill in a 5-4 vote, just weeks after an outside investigation into Hill found no wrongdoing and the district reinstated the superintendent to her position.
Read the full statement and Hill's memo below:
The allegations that have been raised regarding alleged financial irregularities within transactions involving Charlotte-Mecklenburg Schools (“CMS”) are serious and warrant careful review. The State Board of Education has both a constitutional responsibility and a statutory obligation under G.S. 115C-451 to ensure that public education funds are managed lawfully and responsibly. We expect full cooperation from local officials as this review proceeds. If the facts establish violations of state fiscal requirements, the State Board will take whatever actions are authorized and necessary to protect public funds and uphold public confidence in North Carolina's public schools.
The North Carolina Department of Public Instruction (“DPI”) and the State Board will coordinate and cooperate with authorized state and local agencies conducting reviews or investigations related to these matters and will provide information and assistance as permitted by law and consistent with their respective authorities.
We also recognize that recent changes in CMS leadership may create challenges for the district and its school communities. While appropriate accountability and oversight remain essential, our foremost concern is ensuring continuity of educational services for students. DPI and the State Board stand ready to provide technical assistance, guidance, and support within the scope of their statutory responsibilities as district leaders work through this transition. To that end, the Superintendent and the State Board will engage with CMS leadership to discuss and determine appropriate next steps.
Our shared goal is to ensure that any concerns are addressed thoroughly and transparently, that public confidence is maintained, and that students, educators, and families continue to be served effectively throughout this challenging period.
