WS Chronicle

TEVIN STINSON 

THE CHRONICLE  

During the Winston-Salem/Forsyth County Schools (WS/FCS) Board of Education Meeting earlier this week, Superintendent Tricia McManus gave an update on the district’s cost saving plan. Following her presentation on the budget, Republicans on the board tried to make a motion to have McManus fired.  

What We Know  

In March, findings from an audit showed WS/FCS overspent $16 million during the 2023-2024 school year, which lead to an $8 million budget shortfall for the 2024-2025 school year. To address the deficit, McManus proposed several cost-cutting measures for the remainder of the 2024-2025 school year and the 2025-2026 school year. 

Findings from the audit led to the North Carolina Department of Public Instruction (NCDPI) and the state auditor opening investigations into the district’s finances. To get a better understanding of the deficit, earlier this month the board of education voted to approve a contract for HIL Consultants to assist the financial department with closing out the 2023-2024 school year.  

HIL’s preliminary analysis revealed the district is overspending state funds that cover personal costs, and the budget shortfall is much worse than they thought. The shortfall is now estimated to be around $42 million for the 2024-2025 fiscal year alone.  

It’s still unclear exactly how the district went $42 million over budget.  

District leaders say they have added hundreds of jobs to support the increased needs of students since 2019. At the same time, the pandemic led to a decline in student enrollment, which led to less state funding for staff salaries. Temporary funding provided by the federal government for COVID relief and two years of the state holding districts harmless for enrollment declines provided extra funds to cover the staffing overages. 

While giving her presentation on the budget on Tuesday, McManus said the district also went over budget in substitute cost, transportation, and early childhood. “All of those overages are adding up,” she said while discussing the deficit.  

“As I’m meeting with the consultants and meeting with teams of people, we are uncovering things that have been practiced for a long time that didn’t add to this right now, but it’s a compilation of year after year of things being added and not enough taken away.”  

Updated Budget Cuts 

In addition to the saving plan already set in motion, McManus proposed new measures to help the district get out of the $42 million hole.  

Savings strategies already planned include reducing central office positions, reducing school allotments by 148 positions, reducing take-home cars, and reducing funding for supplemental programs, as well as eliminating building-based substitutes and traffic control. Other recommendations include eliminating cell phones, all out of state travel unless required by a grant, eliminating substitutes for TA positions, and eliminating pre-k classrooms for under-enrolled classrooms.  

The district is also exploring the possibility of increasing class sizes which could save more than $6 million and eliminating buses for Choice Schools which would save the district around $3.5 million.   

To address the $42 million shortfall for the current school year, McManus provided a list of recommendations that would save around $9.9 million. Here’s a list of McManus’ recommendations: 

 *Borrow from Child Nutrition Fund Balance = $4,000,000 (needs BOE Approval) 

*Recoup unemployment payback to the district = $1,500,000 

*Collect final payment of indirect costs = $1,000,000 

*Grant reimbursements (Pre-K, Gear Up, etc.) = $1,500,000 

*Receive payment from Downtown School for Pre-K Tuition = $500,000 

*Use funds in Money Market account = $800,000 

*Use Investment Fund funds = $600,000 

McManus recommended going to the Forsyth County Board of Commissioners to ask for a one-time payment of $32 million to cover the rest. “If the county were to say we will give you a one-time payment of this amount, we would also have to build in paying that back over time and that would need to be an agreement with our board and theirs,” McManus said. 

Barr, Miller push to have McManus fired 

Board member Robert Barr hasn’t been shy about sharing his thoughts on the district’s financial department. Barr, who is a Republican, said he lost confidence in the financial team after learning about overspending on the budget. “Right now, as a board member, my confidence in the stewardship of our finance has been shaken,” said Barr before voting against McManus’ initial saving plan earlier this month.  

After McManus gave her updated saving plan to the board on Tuesday, Barr took it a step further when he said the superintendent should’ve been fired. McManus, who has led WS/FCS since 2021, announced her retirement during the board meeting on April 22. Her last day with the district will be June 30.   

“Our CFO was allowed to resign; in reality he should not have been able to resign. He should be terminated. If this was run like a business, that is what would’ve happened,” Barr continued. “… And I say this with all respect, our superintendent should not be allowed to retire but should be terminated because where we are financially … if this was run like a business, I think we would’ve been here a long time ago.”  

Following Barr’s comments, board member Susan Miller, who is also a Republican, attempted to make a motion to have McManus fired. “We must respond to the outcry of our community. They are demanding open, transparent accountability from this board,” said Miller before attempting to make the motion.  

“This mismanagement of funds is falling on the backs of North Carolina taxpayers, wherein the students, parents, teachers and staff are going to suffer. Superintendent McManus, you have accepted responsibility for these actions, but there is accountability in order. Therefore, madam chair, I would like permission to terminate Superintendent McManus.” 

WS/FCS General Counsel, Dionne Jenkins, informed Miller that she could not make the motion to fire McManus. Board member Richard Watts, who is a Democrat, was outraged by the actions taken by his fellow board members. Watts accused Barr and Miller of political grandstanding. 

“I am appalled that some of you would take this opportunity to do this publicly when you’ve had every opportunity during closed session to voice your opinion,” Watts said. “I am appalled that you would say this isn’t about political grandstanding, this is not about party. It is. It’s about listening to what you’ve been told by some folks in your party and I am appalled that you would have the courage, the audacity to speak like you’ve spoken tonight.”  

Next Steps 

Later in the meeting the board did vote to make a formal request to the Forsyth County Board of Commissioners, but it’s unclear if or when the request will be made.  

Commissioners are scheduled to have a budget workshop today (Thursday, May 29), and they are expected to vote on the proposed budget on June 5 and approve the proposed budget on June 5. If the budget isn’t adopted by the board of commissioners on June 5, it will be considered at a later meeting in June, but prior to June 30, as required by the state.