To provide up-to-date and transparent information about the district’s financial condition, this is the August 8 Community Budget Update.
Request for Support
Next week, the Forsyth County Commissioners will consider a request from the Winston-Salem/Forsyth County School Board to 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.
The funds requested include money that has already been designated to the schools for capital maintenance projects and unallocated investment earnings. Providing the funds does not require any increase in taxes or a reduction in the county fund balance.
WS/FCS overspent state funds for noninstructional support by $11.3 million – a lower amount than the district’s most recent estimate of $13.7 million.
In July, the school board requested the state waive the one percent interest that will accrue on this debt. This week, NC State Superintendent Maurice “Mo” Green and Deputy State Superintendent Maria Pitre-Martin reported back to the district that it “cannot allow the district to keep this money indefinitely as essentially an interest-free loan.”
The state is giving the district a grace period to repay the full debt. After September 20, the district will be assessed the one percent penalty.
The district may appeal the decision to impose the penalty to the State Board of Education.
Legislative Communications
The Board of Education set a time to meet with Forsyth County’s state legislative delegation in September.
The board asked legislators to support a special allocation of up to $50.1 million to help WS/FCS resolve its Fiscal Year 2024-2025 debt.
Board Chair Deanna Kaplan, in a letter to the head of the delegation, Rep. Donny Lambeth, said the meeting in September would be an opportunity to “address your questions and concerns and to seek a solution that is within the legislative process.”
“We take responsibility for our financial condition and are making the tough choices to balance our Fiscal Year 25-26 budget. We are moving forward with a conservative approach to spending. We are committed to rebuilding our fiscal health through accountability and transparency. We remain steadfast in getting this right,” Kaplan told Lambeth. “On behalf of our 50,000 students, we are asking you to work with us to find solutions to our Fiscal Year 24-25 deficit.”
Budget Adjustment
At the Tuesday, August 12 Board of Education meeting, the board will consider changes to the way county-employed school resource officers and nurses are paid.
In past years, Forsyth County provided the district about $4.5 million, which the district then paid back to the county to fund school resource officers and county health department nurses for Exceptional Children.
The board will consider reducing the district’s annual allocation from the county by $4.5 million. In turn, the county would pay for those services directly.
Fiscal Accountability
The district continues to prioritize regular communication on its current financial picture. It is providing every-other-week reports to the North Carolina Department of Public Instruction. Read the most recent update.
Interim Superintendent Catty Moore will also provide a budget update during the Tuesday, August 12, Board of Education meeting. It will include information on efforts to keep the Fiscal Year 2025-2026 budget balanced.
Find past updates, presentations, and more on the Community Budget Update portal.