To provide up-to-date and transparent information about the district’s financial condition, this is the September 26 Community Budget Update.
Legislative Request
Board of Education members met with the Forsyth County legislative delegation Monday to discuss the district’s need for support to pay Fiscal Year 2024-2025 debt.
Interim Superintendent Catty Q. Moore provided a financial overview for legislators. Moore said because the school district has no ability to raise revenue (NC school boards are not taxing authorities) it is limited to how it could repay debt.
She noted that the district has sought additional funding from the county and has requested leniency from the State Board of Education on reducing the penalty owed on the debt. Community fundraising efforts are underway, but funders have indicated they are not interested in paying the debt.
Moore requested a special appropriation or a loan from the NC Legislature. Without additional support, WS/FCS would need to make further budget reductions to pay debt. For instance, Moore said, to pay $300K toward debt every month, the district would have to reduce another 50 jobs.
Rep. Donny Lambeth said the delegation would likely support a loan for the district. However, he noted that the other members of the legislature would have to be convinced. Lambeth said no legislation would be considered until the legislature reconvenes next spring. [JC1]
Budget Update
Moore provided a budget update during Tuesday’s regular board meeting.
She provided additional insight into possible options for paying off the district’s $37 million Fiscal Year 2024-2025 Budget deficit. The district will either need additional revenue – such as through a loan or one-time funding from the county or state – or to further reduce expenses.
If additional reductions need to be made, Moore said they could come from further reductions in local staff and non-personnel expenses, reductions in salary supplements or classified local longevity pay, or an expansion of the furloughs.
She noted that the Reduction in Force approved in August and reduction in staff due to lower student enrollment have caused some unintended shifts at schools. For instance, some staff members who were reassigned to new jobs chose not to take their new assignments, leaving vacancies.
This district continues to be in a general hiring freeze, except for some key areas of need at schools.
Moore said she would lift the Central Office hiring freeze if she finds the right candidate for the permanent chief financial officer position. So far, there are eight applicants for the job, but none have CFO experience in North Carolina.
The WS/FCS monthly budget-to-actual report was also presented at the Financial Committee Tuesday.
Dental Coverage
The Board adopted a change to dental coverage aimed at saving the district $1.3 million this year and more in future years.
Beginning in January, the district will shift to an employee-funded dental plan. The rate will be $35.88 per month for 12 months for an individual employee or retiree.
Custodial Services
The Board also heard a report from staff regarding a possible option for reducing the district’s $4.25 million debt to the custodial contractor SSC.
WS/FCS is considering expanding its services with SSC from 40 buildings to 92 buildings when the district’s contract with the provider ends in October. If agreed upon by the Board, SSC would provide a signing bonus of $4.2 million. The bonus would be retained by the company and used to offset the past-due amount owed by the district.
The issue would have to come back before the board for approval.
Find past updates, presentations, and more on the Community Budget Update portal.