WS Chronicle

Findings from a recent audit showed that Winston-Salem Forsyth County Schools (WS/FCS) overspent $16 million during the 2023-2024 school year. To address budget concerns and the possibility of finishing in a deficit again this year, Superintendent Tricia McManus announced several cost-cutting measures, including eliminating positions.  

During the board of education meeting last week, members of the district’s financial team gave a presentation on the audit. The numbers show the district spent $93 million in payroll in 2024, but they only budgeted to spend $83 million, which accounts for most of the overspending. The district also went over its budgeted amount for employee benefits and charter school spending. 

It’s important to note that in 2024, districts across the country saw a major decline in federal funding due to the end of COVID-relief funding. WS/FCS saw its federal funding decline by $40 million between 2023 and 2024. Declining enrollment also played a factor in the district getting less funding. And with Elementary and Secondary School Emergency Relief (ESSER) funding expiring last fall, WS/FCS will likely see federal funding be even less this year.  

Going over the budget led the district to dip into its fund balance. Last November the board of education voted to use their savings to fund $2.4 million in raises and bonuses for teachers. Board member Robert Barr asked why district staff didn’t let the board know that this could happen. “Do we not have something in place to say, you know the board may want this, but right now when we look at our overall budget, I’m not sure if we can give that particular amount of increase,” asked Barr after listening to the audit presentation last week.  

Thomas Kran, chief financial officer, said they predicted money to come in that just never did. “We predicted some revenues that just didn’t materialize; at the end of the day, a budget is a best guess.” To prevent the issue from happening in the future Barr suggested that the district provide more training for the finance department. 

“We have to do a better job,” Barr said.  

Following the audit presentation McManus laid out a plan to save the district some money. Before giving her presentation, McManus said the goal moving forward is to end with a balanced budget and put money into the fund balance.  

This year the district will place a freeze on new hires and spending unless it’s for essential purchases, using state funds only for summer school, and eliminating long-term substitutes and reallocating Central Office staff. There are also plans to reduce take-home cars, eliminate out-of-state travel unless required by a grant, reduce inter-district travel, and eliminate some long-term subs. McManus said they predict these changes will lead to $8 million in savings.  

“With the $8 million, that’s even higher than what we are actually predicting needing to save,” McManus said. “We inflated the number to be on the safe side of what we’re saving.”  

Going into the 2025-2026 school year the savings goal is $16 million. To reach that goal, the district will reduce Central Office staff, furlough the executive leadership team, restructure Virtual Academy, merge Kingswood School and Main Street Academy, eliminate the supplemental digital instructional program, and eliminate the contract with ESS, which currently handles substitutes teachers and teacher assistants for district.  

“We are trying to continue to bring the personnel costs down so that we are getting to a better financial state,” McManus said. “Our goal is financial sustainability for our school district and also a healthy fund balance … and we think this year’s work, next year’s work, are imperative to doing that.”  

The board is expected to consider proposed changes to Central Office during their meeting on Tuesday, April 8. The district is scheduled to present its budget proposal, including the changes, to the Forsyth County Board of Commissioners next month.