To provide up-to-date and transparent information about the district’s financial condition, this is the July 11 Community Budget Update. Look for the next update in August.
Position Changes
Schools have completed the process of reducing approximately 144 positions to better align the staff levels with state-provided funding and another 53 district flex positions due to available federal funds.
These moves have affected 134 employees. Human Resources has been working to move all employees into other open positions in the district. Based on existing vacancies, Human Resources expects to be able to offer every staff member another open position.
These changes, other strategic moves, and the 81-position reduction in force of Central Office completed earlier this spring have resulted in WS/FCS having an estimated 300 fewer full-time equivalent positions in Fiscal Year 25-26 than last year. This represents a total cost savings of $16.5 million.
See the impacted school-based and Central Office positions.
Requests for Funding
This week, the Board of Education voted to request the Forsyth County Commissioners allocate $3.8 million in unspent capital funds and a one-time payment of $4.7 million to help pay down the debt WS/FCS owes the state for over-spending state dollars.
Interim Superintendent Catty Q. Moore worked with the county staff to identify possible funding sources to meet the district’s needs. WS/FCS estimates that it currently owes the state between $13-15 million – a debt which will begin accruing one percent interest this month.
In a letter to the County Commissioners laying out the request, Board of Education Chair Deanna Kaplan noted that board members are also working with the local delegation of state legislators to discuss how the General Assembly might support the district in further addressing the 2024-2025 fiscal year budget shortfall.
Budget Support
The board also approved a new contract with HIL Consulting. Moore said the school finance experts were instrumental in bringing clarity to the district’s financial situation and the efforts to reduce the 24-25 budget deficit.
Under the new contract, the consultants will support the Finance Department to ensure there are accurate budgets for the 2025-26 fiscal year and an on-time Annual Comprehensive Financial Report. They will also assist in the transition to the new enterprise resources system and provide support to staff and the interim chief financial officer.
The $145,500 contract will be funded with lapsed salaries in the Finance Department.
Teacher Supplement
The district will not make any changes to a monthly teacher salary supplement based on new sales tax revenue data provided by Forsyth County.
A quarter-cent of the county sales tax goes directly to providing additional pay to teachers. This pot of money – called Article 46 – fluctuates every year based on how much local residents and visitors spend within the county.
Historically, $300 per month has been provided to WS/FCS teachers and an additional amount goes to more experienced teachers. District leaders contemplated reducing the monthly supplement to $275 because the county was predicting sales tax revenue would not be able to fully fund $300 per month per teacher. This reduction was not related to the district’s past year budget deficit or the cost-cutting measures made for this new fiscal year.
Updated sales tax revenues provided Tuesday afternoon by the county indicated the district would be able to afford the $300 supplement. The Board of Education affirmed that supplement amounts will remain the same for the 25-26 school year.
Federal Funding Freeze
Last week, the NC Department of Public Instruction (DPI) reported that the US Department of Education would not be issuing states Title II, III and IV grants on July 1 as originally scheduled. WS/FCS receives these federal funds to improve academic achievement for disadvantaged students and effectiveness of teachers and principals, support English language learners, and provide access to a well-rounded education.
The district expected to receive about $5.5 million from these grant programs for the 25-26 school year. The funds would be used to support both staff salaries and program expenses.
While awaiting further information from the federal government on the status of the funds, WS/FCS will use some remaining money from past grant cycles to prioritize paying staff salaries to continue to provide services to schools.
Find past updates, presentations, and more on our Community Budget Update portal.