Forsyth County approves nearly $12 million in transfers and budget adjustments to help schools, sets strict repayment and reporting conditions

Forsyth County commissioners on Aug. 14 approved a package of funding moves and budget changes worth roughly $12.1 million intended to help Winston‑Salem Forsyth County Schools (WSFCS) repay outstanding debts and simplify payments for county‑provided services.

Deputy Chief Financial Officer Lee Plunkett told commissioners the board was being asked to (1) reallocate $3.87 million of unspent county general‑fund transfers in the county’s education capital project ordinance back to the general fund and then appropriate that as current expense for the schools, (2) allow $4.7 million of investment earnings from the county’s 2023 general obligation bond proceeds to be used to pay debt service interest so that the property tax revenue originally appropriated for that interest could be repurposed as current expense, and (3) reduce this year’s county appropriation to the schools by $4,600,010.20 so the county will pay directly for school resource officers and public health nursing services rather than routing the money through the district.

Plunkett said the combined result of the two transfers being considered for debt repayment would be $8,568,000, and described mechanics for each plan. He said the school share of the 2023 bond interest in question is $4.7 million and that about $11.8 million in investment earnings exists in the education CPO, with roughly $5 million available after setting aside amounts for the county’s arbitrage rebate liability.

The board placed strict conditions on the use of funds. County counsel read identical paragraphs that were incorporated…