School District reveals $42M budget shortfall and plans for 2025-2026 cuts

In a pivotal Board of Education meeting held on June 10, 2025, Winston-Salem/Forsyth County Schools officials confronted a staggering budget shortfall of $42 million for the current fiscal year. The meeting, marked by a sense of urgency, outlined the dual paths the district is navigating: addressing the immediate financial crisis while planning for a more sustainable budget in the upcoming 2025-2026 school year.

The discussion revealed that the budget deficit stemmed from several factors, including overspending in classified staff allocations, transportation inefficiencies, and unanticipated costs related to charter school payments. Notably, the district had also failed to budget for a $12 million contract with ESS, a substitute management system, which had previously been funded through temporary ESSER dollars. These miscalculations and oversights have left the district scrambling to find solutions.

To mitigate the financial strain, district officials detailed a plan to reduce the deficit incrementally. They reported that approximately $2 million is currently available in their checking account, with additional funds expected from various sources, including Medicaid reimbursements and grant returns. However, the district still faces significant challenges, with $3 million owed to major vendors, including contracts for substitute management and custodial services.

Looking ahead, the district has identified $39 million in potential savings for the next fiscal year. These reductions, which do not require board approval, include eliminating certain positions, reducing transportation services, and cutting back on digital subscriptions used in classrooms. The superintendent emphasized the need for strategic decision-making, acknowledging that while these cuts are necessary, they may impact the quality of education.

The meeting also highlighted the district's commitment to transparency, as officials communicated directly with vendors about the financial situation and the steps being taken to address it. As the board prepares to vote on appropriating funds from the Child Nutrition Fund to help alleviate the current deficit, the community watches closely, aware that the decisions made now will shape the future of education in Winston-Salem/Forsyth County.

In conclusion, the board's actions in the coming weeks will be crucial in determining how effectively the district can navigate this financial crisis while ensuring that students continue to receive the services they need. The path forward is fraught with challenges, but the district's leadership remains focused on rebuilding and maintaining a balanced budget for the future.