Interim Winston‑Salem/Forsyth schools chief outlines $37 million deficit, 224 staff reductions and audit review

Interim Superintendent Catty Moore told the Forsyth County Board of Commissioners on Sept. 25 that Winston‑Salem/Forsyth County Schools faces two related fiscal problems: an estimated $37,000,000 deficit for fiscal 2024–25 and the need to balance the 2025–26 budget. "We have two issues," Moore said. "One issue is the fiscal deficit from 24‑25. That is now currently estimated at around $37,000,000."

Moore said the district reduced personnel and non‑personnel spending by about $63,000,000 to balance 2025–26, but emphasized those savings do not erase last year’s deficit. The district has paid some obligations this fall, including a $7,900,000 payment to the state Department of Public Instruction (DPI), which lowered the estimated deficit from previously higher figures. Moore said the State Board of Education has asked the district to present a repayment plan in Raleigh on Nov. 4 for about $3,400,000 the district still owes the state; the state will begin charging interest at 0.4% as of Oct. 1.

Why it matters: The deficit and related audit findings affect the district’s ability to rebuild reserves, maintain services and release full budgets to schools. Moore said the widespread negative balances that remain on year‑end fund statements will continue to generate audit findings until cleared, which could constrain the district’s financial flexibility and public…