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Forsyth County commissioners consider using county debt as incentive for private fundraising to reduce $5.03M school arrears
Summary
County leaders discussed a proposal to forgive dollar‑for‑dollar portions of the $5,026,337 the Winston‑Salem Forsyth County Schools owes the county if private donors retire matching amounts. Commissioners were split; county manager warned the fiscal impact to FY25 already occurred and staff will prepare a draft resolution for the Oct. 9 meeting.
Forsyth County commissioners discussed options on Oct. 6 after learning Winston‑Salem Forsyth County Schools owed the county $5,026,337 related primarily to school resource officers, school nurses and small lease items.
Chair members reported a privately organized fundraising effort is planning a meeting for Oct. 22 to explore raising money to retire school debt. The county chair proposed an incentive structure: forgive county debt dollar‑for‑dollar for amounts raised privately (for example, if private donors raised $3,400,000 the county would forgive $3,400,000 of the roughly $5,026,337 owed).
County Manager Shantel Robinson cautioned commissioners that the financial impact of the unpaid amounts has already affected the county's fiscal year 2025 audit and fund balance. "The damage has already been done in terms of those funds, even if they repay us this fiscal year," Robinson said, adding that returned funds would be applied to restore fund balance but would not undo the FY25 effects.
Commissioners debated alternatives. Some supported using the county's claim as an incentive to mobilize private donors and avoid deeper cuts to school services; others opposed forgiving the debt and recommended repayment schedules or withholding future allocations until the debt is repaid. Commissioner Bessie characterized the situation as misspending identified by the state audit and said local taxpayers had already covered the expense.
Staff clarified the debt composition: roughly $4.7 million related to sheriff deputies/SROs, about $300,000 for school nurses, and a small remaining amount for lease items. Commissioners noted timeline constraints: interest on some obligations began Oct. 1, and the district must submit a repayment plan to the state by Nov. 4 and begin payments in January.
No formal vote was held at the briefing. County staff will prepare a draft resolution for the Oct. 9 meeting outlining potential county actions, including the dollar‑for‑dollar forgiveness option and alternative repayment approaches. Commissioners said individually they may attend the proposed Oct. 22 community meeting; several asked staff to prepare language that would clarify the board's position before that date.
