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Gastonia, N.C. (WNN) - The Gaston County Board of Commissioners approved a one-time $5 million allocation for Gaston County Schools during a special meeting held Tuesday, July 14, 2026, at the Gaston County Courthouse located at 325 Dr M.L.K. Jr. Way, Gastonia, NC.
The funding comes just four weeks before the start of the 2026–27 school year and follows months of discussion surrounding the school district's financial challenges.
The meeting opened with Chairman Chad Brown calling for discussion on the funding needs of Gaston County Schools and the possibility of approving additional one-time funding.
Gaston County Manager Matthew Rhoten - Gaston County Schools Funding and Discussion Special Meeting - Gaston County Commissioners - Gastonia, NC - July 14, 2026
Mason Beam (WNN)
County Manager Matthew Rhoten cautioned commissioners that while using the county's fund balance may be necessary, it is not a long-term solution.
"The continued use of fund balance is not sustainable,"
- Matthew Rhoten, County Manager
He explained that the county has postponed projects in recent years to rebuild its reserves. He emphasized the importance of maintaining a healthy fund balance to protect the county's financial stability.
Gaston County Chairman Chad Brown - Gaston County Schools Funding and Discussion Special Meeting - Gaston County Commissioners - Gastonia, NC - July 14, 2026
Mason Beam (WNN)
Before opening the floor for discussion, Brown reminded commissioners that the funding request "cannot be larger than the conversation."
Commissioner Jim Bailey shared research on state lottery funding, noting that the revenue available to schools has been reduced by more than half, to 16.5% of the money collected.
Gaston County Commissioner Jim Bailey - Gaston County Schools Funding and Discussion Special Meeting - Gaston County Commissioners - Gastonia, NC - July 14, 2026
Mason Beam (WNN)
Bailey also noted that Gaston County Schools Superintendent Morgen Houchard has stated the district faces a $15 million budget deficit. Earlier this year, commissioners approved approximately $13.2 million in additional funding for the school system, but Bailey said those funds were still not enough to address the district's needs. He concluded by outlining the district's "wish list," stating that he would support the motion only if $2 million were allocated for teacher supplements.
Commissioner Bob Hovis explained that the district's funding requests were divided into two categories: mandated expenses and discretionary requests.
Hovis said commissioners had to balance supporting the school district while ensuring the county remained financially stable.
Gaston County Commissioner Bob Hovis - Gaston County Schools Funding and Discussion Special Meeting - Gaston County Commissioners - Gastonia, NC - July 14, 2026
Mason Beam (WNN)
"The question is how far we want to go into our savings account and still manage the county properly,"
- Bob Hovis, Vice-Chair, Crowders Mountain Township
Rhoten again addressed the county's fund balance, explaining it reached a historic low about nine years ago before climbing to approximately 23% last year. He said county policy requires maintaining a fund balance between 15% and 20%. Any funds above that threshold are transferred into capital projects.
Gaston County Manager Matthew Rhoten - Gaston County Schools Funding and Discussion Special Meeting - Gaston County Commissioners - Gastonia, NC - July 14, 2026
Mason Beam (WNN)
Rhoten warned that allowing the balance to fall below 15% could negatively affect the county's bond rating, requiring additional justification, reducing purchasing power, and increasing taxpayer costs. He also stressed that the fund balance should be used only for one-time expenses. Looking ahead, Rhoten noted additional financial uncertainty, including the possibility of a property tax cap in November.
If it falls below 15%, the county enters a three-year recovery period to restore the balance to 20%, with the potential for a downgrade in credit ratings if it fails to do so. Currently, the county has a Triple A credit rating, which means it pays the lowest possible interest rates on bonds. If they lose this, it means less spending power from collected tax dollars.
$300 million in outstanding county debt, with annual debt payments exceeding $30 million. He added that any future borrowing beyond current authorizations would require a voter referendum.
Gaston County Commissioner Allen Fraley -Gaston County Schools Funding and Discussion Special Meeting - Gaston County Commissioners - Gastonia, NC - July 14, 2026
Mason Beam (WNN)
Commissioner Allen Fraley said the county has already allocated roughly $17 million from its fund balance over the past several months to assist the school district.
"Whatever decision we make tonight has to be sustainable. We can't be in this situation again."
- Allen Fraley, Cherryville Township Commissioner
Chairman Brown initially proposed a $5 million appropriation, including:
Fraley then proposed adding an additional $275,000 to support W.B. Beam Intermediate School.
Gaston County Commissioner Tom Keigher - Gaston County Schools Funding and Discussion Special Meeting - Gaston County Commissioners - Gastonia, NC - July 14, 2026
Mason Beam (WNN)
Commissioner Tom Keigher also sought additional funding for the Exceptional Children's Program, but said he could not identify a specific amount.
Brown suggested increasing the proposal to $5.5 million before discussing a possible $6 million appropriation. Before any motion was finalized, commissioners recessed for five minutes.
Following the recess, Brown withdrew all previous motions and amendments to begin the discussion again with a clean slate.
Bailey then proposed an $8 million appropriation, including:
The motion failed after receiving no second.
Gaston County Commissioner Scott Shehan - Gaston County Schools Funding and Discussion Special Meeting - Gaston County Commisioners - Gastonia, NC - July 14, 2026
Mason Beam (WNN)
Commissioner Scott Sheehan then made a motion to approve a $5 million appropriation distributed as follows:
Fraley seconded the motion. With no further discussion, commissioners voted 4–3 to approve the five-million-dollar funding.
The Gaston County Education Alliance walking out on the meeting - Gaston County Schools Funding and Discussion Special Meeting - Gaston County Commissioners - Gastonia, NC - July 14, 2026
Ashley Reep (WNN)
Following the vote, several attendees wearing red in support of Gaston County Schools walked out during the commissioners' closing remarks. As they exited the meeting, one phrase could be heard: "November is coming."
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