Winston‑Salem/Forsyth schools report $46 million shortfall; board warned reductions could eliminate 300–350 positions

Interim Superintendent Caddy Moore told the Winston‑Salem/Forsyth County Schools Board of Education on Aug. 12 that the district faces an approximately $46 million budget shortfall for the 2024–25 fiscal year and an urgent need for reductions to balance the 2025–26 budget. Moore said the district is recommending a minimum of $20 million in reductions for the coming year and that a formal reduction‑in‑force (RIF) could eliminate roughly 300–350 positions.

Moore said the $46 million shortfall includes multiple components: about $16.1 million the district owes three vendors (ESS, SSC and Forsyth County), a roughly $11.3 million adjustment from the state Department of Public Instruction (DPI), $2 million already accessed from Child Nutrition fund balance (the board previously approved up to $6 million), and an $8 million decrease in federal carryover. Moore added other accounting items tied to capital and grant fund balances push the total exposure higher, “somewhere between $60 to $65 million” depending on final audit reconciliations. “We cannot balance the budget without further reductions,” Moore said.

Why this matters: Payroll and benefits account for about 85% of the district’s budget, Moore said, which limits non‑personnel savings and forces the district to consider personnel reductions or changes to months of employment and benefits. Hill, an outside consultant retained to review the district’s 2025–26 budget, recommended notable cuts in central office administration, school non‑instructional support, exceptional‑children (EC) staffing, dental insurance policy changes, and assistant principal staffing.

Key reduction options presented by staff include: - Central services staffing reductions and possible reduction of months of employment for 11‑ or 12‑month central staff (estimated $3–5 million); - School‑based non‑instructional staffing reductions and similar month‑of‑employment adjustments (estimated $2–3 million); - EC program staffing reductions including teachers and assistants (estimated $9–11 million); - Revising assistant‑principal allotments (staff proposed reducing roughly 36 AP positions and moving many AP contracts to 10 months, estimated $4–5 million); - Shifting employer‑paid dental premiums to employees beginning Jan. 1, 2026 (staff estimated roughly $1.3 million saved in 2025–26, $2.5 million in a full year); - One‑time central office furlough days as a short‑term recoupment option (roughly $200,000 per central‑office furlough day).

Moore also reviewed recent actions and timelines related to last year’s debt: the district has sent materials to the Internal Revenue Service, is awaiting the Office of State Auditor’s investigative audit report, and has requested flexibility and possible funding from the Forsyth County commissioners (Moore said she asked for $8.5 million to address 2024–25 debt). She said the State Board of Education offers an appeal process for DPI actions and that the district plans to seek appeal where appropriate.

Public commenters, many of them district employees and parents, urged the board to seek more transparency, prioritize staff retention and recruitment, and press the county and state delegation for support. Jenny Easter, identified as president of the Federal Coalition of Area Educators (FCAE) and a district teacher, urged the board to “use every opportunity … to fight actively to prevent [cuts].” Harry Morley, an exceptional‑children’s teacher, said he appreciates the board’s advocacy to county commissioners and urged continued pressure on state lawmakers.

Board members expressed shock and frustration at the size and suddenness of the deficit. Several members urged that the district and board use the period before any layoffs to pursue alternatives and to ensure transparent communication with staff. The board set a special called meeting for Aug. 19 to consider RIF action; the regular meeting schedule includes Aug. 26.

Discussion versus decision: The board approved two separate actions later in the meeting (see related articles): the EC contract approvals and a request to the county commissioners to amend a local fund allocation. The RIF itself had not been approved on Aug. 12; staff asked the board to consider formal RIF action at the Aug. 19 special meeting.

Ending: Moore and board members warned that additional adjustments could come after DPI completes its allotment reconciliations and after the district’s audit is finalized this fall. The district said it will provide further details and an FAQ to staff before any formal RIF notifications are issued.