WS/FCS CFO Resigns Amid Budget Fallout, $16M Overspending Audit
By Tevin Stinson
The Chronicle
Winston-Salem/Forsyth County Schools (WS/FCS) Chief Financial Officer Thomas Krans has resigned, effective immediately, following a Board of Education meeting earlier this week and just days after an audit revealed the district overspent by $16 million during the 2023-24 school year.
Krans, who joined the district in 2022, announced his resignation Tuesday, April 8, shortly after the board meeting. The announcement comes at a critical point in the district’s budget process.
Audit Details $16M Overspend
During the board’s April 1 meeting, members of the financial team presented audit findings that show the district spent $93 million on payroll in 2023-24—$10 million more than the $83 million budgeted. Overspending also occurred in employee benefits and charter school payments.
The shortfall led the district to draw from its fund balance, which is the net amount remaining after subtracting liabilities from assets and serves as a key indicator of financial health.
In November 2023, the board voted to use $2.4 million from savings for teacher raises and bonuses. During the April 1 meeting, board member Robert Barr questioned the CFO’s judgment.
“Do we not have something in place to say, ‘The board may want this, but based on our budget, we can’t afford it’?” Barr asked.
Krans responded that some of the district’s anticipated revenues never materialized.
“We predicted some revenues that just didn’t come in,” he said. “At the end of the day, a budget is a best guess.”
McManus Proposes Cost-Saving Plan
To address the deficit, Superintendent Tricia McManus proposed several cost-cutting measures:
- A hiring and spending freeze (except for essential purchases)
- Use of state funds only for summer school
- Elimination of long-term substitutes
- Reallocation of Central Office staff
- Cuts to take-home vehicles and out-of-state travel
- Reduction in inter-district travel
McManus said the projected savings are around $8 million, slightly more than what is currently needed.
“We inflated the number to be on the safe side,” McManus told the board.
Deeper Cuts Planned for 2025-26
Looking ahead to the 2025-26 school year, the district hopes to save $16 million through deeper cuts, including:
- Furloughing the executive leadership team
- Restructuring the Virtual Academy
- Merging Kingswood School and Main Street Academy
- Ending the contract with ESS, the firm that provides substitutes and teacher assistants
81 Central Office Positions Affected
During the April 8 meeting, the board passed a resolution to reduce Central Office staffing, affecting 81 positions:
- 33 employees may see reduced salaries or employment months
- 9 could be laid off
- 8 will be transferred
- 31 positions are expected to be vacated by year-end
Several employees spoke during public comments, urging the board to request additional funding from the Forsyth County commissioners rather than reduce staff.
Confidence Shaken
Before the vote, Barr expressed skepticism about the district’s financial management.
“The process of reporting between our CFO, superintendent and the board—somewhere something broke,” he said. “Right now, as a board member, my confidence in the stewardship of our finance has been shaken.”
The board approved the staffing cuts in a 5-3 vote. Board members Trevonia Brown-Gaither and Sabrina Coone, both Democrats, joined Barr in opposing the resolution.
