Winston‑Salem/Forsyth board hears $46.1 million deficit update, votes to send formal request to legislators

Interim Superintendent Cady Moore told the Winston‑Salem Forsyth County Schools Board of Education on July 29 that the district’s fiscal year 2024–25 budget shortfall stands at $46.1 million and described late invoices, federal carryover reductions and requests to local and state officials to address the gap. "Our overall budget deficit at this point is now at 46.1," Moore said during the meeting.

Why it matters: the board is accountable for district oversight but is not a taxing authority; school operations depend on county, state and federal allocations. A larger‑than‑expected prior‑year deficit affects staffing, transportation and program continuity for the coming school year and has prompted the district to seek one‑time relief and policy waivers from state authorities.

Moore said the figure rose after invoices arrived in late May and June and that the district is reserving about $2 million for vendor invoices that arrive after June 30, a standard accounting practice she described as "month 13." She told the board that three large vendor payments still due total about $16.1 million and include the substitute management system, a custodial services vendor and payments to Forsyth County for school resource officers and nurses. Moore said federal program carryover is down by about $8 million because carryover had been used to reduce the deficit during closeout.

Moore described an ongoing investigative audit by the North Carolina Office of the State Auditor into district financial systems and decision making and said the district has provided data and access. "We do expect that the audit report will have findings and recommendations," she said, adding that the district will provide a response to any draft findings and that the auditor will release the final report publicly in the fall.

She outlined the district’s requests to local and state officials: a formal request to Forsyth County commissioners for flexibility to use $3.8 million in unspent, undesignated capital outlay and an additional local allocation tied to bond interest earnings of $4.7 million (the superintendent said those two items together represent $8.5 million the district has asked the county to consider). Moore said the county deferred action to its Aug. 14 meeting and she will return to brief the commissioners on Aug. 11.

On the state level, Moore said the district projects a shortfall in state‑allocated funds of $13.7 million and has asked the North Carolina State Board of Education to waive its policy that authorizes a 1% per month penalty on funds the state determines a district overspent. Moore said the district sent a letter to the State Board on July 18 asking that the board set aside that policy penalty when the final amount owed is determined.

Board discussion and public comment emphasized transparency and local impacts. Community members asked why the deficit increased and how cuts will affect students and staff. Public commenter Rhonda Mays asked, "Why is there an additional $4,000,000 added to the deficit?" and called for transparency and support for educators. Another commenter, Peter Antonacci, said, "The tragic reality of the budget deficit is students will have less this year than last."

After discussion the board voted to approve a motion to send a formal letter to the local legislative delegation requesting assistance with the FY24–25 shortfall. The motion was made by Board Member Susan Miller and seconded by a board member recorded as "second" in the meeting record; the vote was announced as unanimous.

What remains in motion: Moore said the district may need a special called meeting before Aug. 12 if new information requires board action. She also said the district expects an audit report in the fall and will continue to pursue local and state flexibility and financial support in the meantime.

Supporting details: the district has begun FY25–26 budget work, opened its new Tyler finance system July 21 and has released 50–100% of line‑item funds to departments depending on category. Moore said district staff are reviewing non‑personnel budgets for additional savings and continuing to reconcile payroll and IRS withholding issues with federal authorities.

Looking ahead: the board scheduled its next regular meeting for Aug. 12 and the superintendent said she is coordinating in‑person meetings with local delegation members to present the formal request if the board approves sending the letter.