Winston‑Salem/Forsyth Board approves fiscal transfers, seeks $8.5M from county and extends Hill Consultants; keeps Article 46 supplement at $300

The Winston‑Salem/Forsyth County Schools Board of Education on a special‑called meeting approved a package of fiscal and contracting actions intended to stabilize year‑end finances and support upcoming operational transitions. The board voted to approve budget transfer No. 16, voted to ask the Forsyth County commissioners to reallocate $3.8 million of undesignated capital plus up to $4.7 million in a one‑time payment (a total request of about $8.5 million), and authorized a new contract with Hill Consultants to continue financial and audit support. The board also approved keeping the Article 46 teacher supplement at $300 per month.

The decisions followed public comment and staff briefings that framed the requests as largely accounting cleanups and short‑term measures to prevent additional state interest charges and to fund existing obligations. Interim Superintendent Caddy Moore told the board county staff had identified roughly $6.6 million in county‑held capital funds, subtracting already‑encumbered projects left about $3.8 million that were undesignated; county staff also indicated the county could consider a separate one‑time payment of up to $4.7 million. Moore recommended the board ask the county to reallocate $8.5 million to help cover outstanding vendor obligations and to reduce state overpayments that otherwise would accrue 1% monthly interest.

Board members asked how the requested funds would affect long‑term capital needs and whether the district would “pay back” deferred facility projects; Moore said the request was not intended to cancel projects currently in progress and that the board would revisit the capital plan in facilities committee, noting the district still has a longer list of unmet facility needs. Chief Operations Officer Lauren Richards recommended deferring two projects on the 2024–26 two‑thirds bond project list (Main Street Academy gym HVAC and a North Forsyth track renovation) and instead allocating about $870,000 to a contingency line.

Chief Human Resources Officer Chris Weichert described Budget Transfer No. 16 as year‑end accounting cleanup. That item moved balances between purpose codes so school‑level unspent local allocations are reclassified properly and state program codes are adjusted so money is used where it was intended rather than returned to the state. Weichert emphasized that Transfer No. 16 does not add revenue.

The board also voted to renew a contract with Hill Consultants (contract documents and scope were before the board) for continued support with financial reconciliation, transition to the new Tyler ERP system, and on‑time audit delivery. Interim Superintendent Moore said Hill’s work helped the district identify its deficit and improve coding of expenditures; she asked that Hill provide regular written statements of work to the board and public. Several public speakers — including a former auditor and teachers — urged the board to keep Hill on the job through the CFO transition and recommended that Hill help with candidate assessment and financial process improvements.

On Article 46 — the county sales‑tax‑derived local supplement — staff reported updated county projections received the same day reduced expected shortfalls. District staff recommended and the board approved maintaining the Article 46 supplement at $300 per eligible teacher for next year while recommending a modest reserve (roughly 5% of the Article 46 allocation) be held to cover the September true‑up the county performs. Staff explained Article 46 funds are variable: the county projects them, later “trues up” actual revenue, and the difference can produce either a payback obligation or an additional payment to the district.

Votes at a glance: • Budget amendment / Transfer No. 16 — motion by Board Member Watts; second by Board Member Crowley; outcome: approved unanimously. • Request to county commissioners to reallocate funds (requesting $3.8M undesignated capital + up to $4.7M one‑time) — motion by Board Member Crowley; second recorded; outcome: approved unanimously. • Update to the 2024–26 two‑thirds bond project list (defer two projects to create ~$870,000 contingency) — motion by Board Member Brown Gaither; second by Board Member Watts; outcome: approved unanimously. • Contract with Hill Consultants (renewal/extension) — motion and second recorded; outcome: approved unanimously; board directed written deliverables. • Instructional empowerment contract for Kimbell Farm — approved unanimously. • Article 46 teacher supplement recommendation (retain $300) — motion by Board Member Crowley; second by Board Member Miller; outcome: approved unanimously; staff to split Article 46/regular supplement lines on paystubs for transparency. • Crosby Scholars contract — approved; one board member recused from the vote; outcome: approved with one recusal. • Memorandum of agreement with Forsyth Technical Community College — approved unanimously (see separate coverage of MOA changes).

Board members emphasized the need for clearer monthly budget‑to‑actual reporting and for the finance team to provide timely financial information to enable the board’s fiduciary oversight. Several board members asked staff to bring budget‑to‑actual templates to the finance committee and noted that Hill may assist in building capacity but that producing monthly reports is the superintendent and CFO’s responsibility.

The board framed most measures as short‑term, targeted steps to address immediate obligations and to buy time for a larger financial plan and facilities‑planning conversations. Staff and board members repeatedly stated they would revisit the capital and bond project list in the facilities committee before making further reallocations.