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Winston-Salem Forsyth County Schools has released a new update on its efforts to alleviate the budget deficit from the past fiscal year, including the effects of position changes and reductions and the potential effects of the federal funding freeze.

Position changes 

Schools have reduced 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. The district stated that it is attempting to move all affected employees into other open positions in the district.

These changes, other 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 the current fiscal year than last year, saving $16.5 million.

Requests for funding 

Last week, the Board of Education voted to request $3.8 million in unspent capital funds and a one-time payment of $4.7 million from the Forsyth County commissioners to help pay down the debt WS/FCS owes the state for over-spending state dollars.

Interim Superintendent Catty Moore worked with county staff to identify possible funding sources to meet the district’s needs. WS/FCS estimated that it currently owes the state between $13 million and $15 million, a debt which will begin accruing one percent interest this month. 

In a letter to the county commissioners, Board of Education Chair Deanna Kaplan noted that board members are also working with 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.

The $145,500 contract will be funded with lapsed salaries in the finance department, or salaries that were budgeted for the fiscal year but not filled. 

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.

The district has provided $300 per month to teachers, with more available to experienced teachers, but the county predicted that sales tax revenue would not be able to fully fund that amount this year. The district stated the potential reduction was not related to the budget deficit.

Updated sales tax revenue projections provided Tuesday afternoon by the county indicated the district would be able to afford the $300 supplement, so the board chose to offer the full amount.

Federal funding freeze

Last week, the N.C. Department of Public Instruction reported that the U.S. Department of Education would not be issuing Title II, III and IV grants to states on July 1 as originally scheduled. WS/FCS has received 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.