Families at Hough, North Mecklenburg and Hopewell high schools face new uncertainty after North Carolina's top education officials escalated state oversight of Charlotte-Mecklenburg Schools.
State Board of Education Chair Eric Davis and State Superintendent Maurice "Mo" Green issued a joint statement Thursday, Oct. 1, calling allegations of financial irregularities at CMS "serious" and invoking the board's constitutional and statutory authority over public education funds. The review by the NC Department of Public Instruction (DPI) and the State Board comes on top of ongoing probes by the NC State Auditor's Office and a formal criminal investigation by the State Bureau of Investigation (SBI).
"If the facts establish violations of state fiscal requirements, the state Board will take whatever actions are authorized and necessary to protect public funds …" Green said Oct. 1, as reported by the Charlotte Observer.
The statement did not name specific transactions or individuals under review. It set no timeline for the work.
What state law allows
Under North Carolina General Statute 115C-451, the State Board can require local districts to report financial information. If a district fails to comply after a warning, the board can suspend local spending discretion. In the most extreme scenario, the state can appoint an administrator to assume complete control of a district's budget and expenditures.
CMS operates on a $2.1 billion budget, according to WFAE. It is the largest school district in North Carolina.
Three probes, one district
The DPI review is the newest of three overlapping state-level inquiries into CMS finances.
Mecklenburg County District Attorney Spencer Merriweather requested the SBI open a formal criminal investigation in September after an initial informal inquiry into reports of financial irregularities, as first reported by Spectrum News. State Auditor Dave Boliek announced his office's investigation on Sept. 23. "The goal of being here … [is] quite simple: help calm the chaos," Boliek said Sept. 23, according to Queen City News.
Neither the auditor nor the SBI has publicly identified anyone as a target, the Charlotte Observer reported.
Leadership in flux
The financial scrutiny arrives during upheaval at CMS. The school board voted 5-4 on Sept. 22 to terminate Superintendent Crystal Hill's contract. Board members Charlitta Hatch, Dee Rankin, Liz Monterrey Duvall, Stephanie Sneed and Shamaiye Haynes voted in favor. Monty Witherspoon, Cynthia Stone, Anna London and Lenora Shipp voted against. Hill's severance will cost the district more than $340,000.
Acting Superintendent Melissa Balknight has agreed to stay until a permanent replacement is hired. Board Chair Dee Rankin said a search committee will be formed. Former board member Lisa Cline estimated the process could take four to five months.
Six members of CMS leadership have announced retirements in recent weeks, including Chief of Staff Chasity Dolan and Chief Financial Officer Kelly Kluttz, whose departure takes effect Jan. 1, 2027, Axios Charlotte reported.
Green, a former CMS general counsel and deputy superintendent, said the state stands ready to provide "technical assistance, guidance, and support" to CMS during the transition. Davis previously served on the CMS school board.
CMS has not announced a board meeting date to address the state review. The DPI and State Board said they will engage with CMS leadership to determine next steps.
