To provide up-to-date and transparent information about the district’s financial condition, this is the August 15 Community Budget Update.
Debt & Fiscal Year 2025-2026 Budget
On Tuesday, August 12, Interim Superintendent Catty Q. Moore provided a budget update to the Board of Education. The district continues to work on paying down its Fiscal Year 2024-2025 debt and will need to make additional reductions, perhaps of up to 350 positions, to balance the current year budget, Moore told board members.
The district is considering several one-time cost savings to help pay the debt. The options include Central Office furloughs, which would save approximately $200K per day; providing no annual increase to the local supplement, a savings of $375K; and providing no annual increase to the local longevity for classified staff, a savings of $100K.
Moore also presented a report and recommendations from HIL Consultants regarding the Fiscal Year 2025-2026 budget.
HIL reviewed district costs, available funding and staffing allotments. The consultants identified several areas where the district is staffed above state allotments or providing services well above state standards or those of comparable districts. Based on this analysis, Moore believes WS/FCS will need to make an additional $19.3-$25.3 million in reductions to have a balanced budget for this fiscal year.
The consultants recommended the district review staffing levels at Central Office, school administrators and non-instructional staff, and the Exceptional Children’s program ratios and staffing. HIL is also reviewing the district-funded dental coverage.
Moore will bring a recommendation for a Reduction in Force to the Board of Education on Tuesday, August 19.
Moore said the district’s investment priorities remain quality core instruction, a well-rounded education, meeting the behavioral and mental health needs of students and staff, employee recruitment and retention, and efficient operations. Any reductions will be made with those core values in mind, as well as an assurance that the district meets its obligations to provide a Free Appropriate Public Education for students. Read more about possible EC program changes in this FAQ.
Request for Support
Thursday, the Forsyth County Commissioners agreed to allocate $3.8 million in unspent capital funds and a one-time payment of $4.7 million to help the district pay its debts from last year.
WS/FCS has a $46.1 million deficit for the 2024-2025 fiscal year. The most pressing need is $11.3 million owed to the state of North Carolina, which will begin accruing one-percent interest next month. The funds will not be used to support the district’s current year budget needs.
These county funds were contingent on the School Board providing an official letter committing to building a new Ashley Elementary School. The project is currently in the planning phases.
Audit Report Released
The NC Auditor’s Office released the results of an investigatory audit of the district’s finances on Thursday.
Learn more about the report in Moore’s message to the community. You may also review the full audit report and the district’s responses under the Presentations & Documents section of the Community Budget Update web portal.
WS/FCS concurs with the Auditor’s findings and recognizes the need for stronger internal processes and succession planning to address the systemic inefficiencies and lack of controls that have existed for nearly a decade or more.
Moore will provide a presentation on the audit results at 5:30 pm, August 19 special Board of Education meeting.
Find past updates, presentations, and more on the Community Budget Update portal.