WILMINGTON – The New Hanover County School Board continues to battle over controversial issues. School redistricting and the racial make-up of the schools could cause the school system to lose almost $800,000 in state funding.

A bill passed in June states when reviewing the county's disadvantage students supplemental funding the state could deny that money if segregation was found in the classroom.

Board member Janice Cavenough says this was not a race issue but based on growth.

"When we developed that school there was the proposal of a new housing development with over 2,000 homes that hasn't happened because of the economy but we do expect growth in the future," said Cavenough.

With Election Day right around the corner and four seats up for grabs on the school board, officials say there will be more redistricting issues in the future.