Winston Salem / Forsyth County Schools outlines debt-repayment plan as private fundraising grows

Interim Superintendent Cady Moore told the Winston Salem / Forsyth County Schools Board of Education on Nov. 10 that the district overspent its 2024–25 budget by about $45.5 million and reported a June 30, 2025 vendor debt near $33.5 million after applying $13.5 million in fund balance. "We spent beyond our available funds by about 45 and a half million dollars," Moore said, identifying staffing and unanticipated recurring expenses as the primary causes.

Moore outlined a multi-part plan to address vendor debt: use of repurposed county capital funds with Forsyth County approval to make initial vendor payments, private donations raised through a foundation-led campaign, and $3.5 million set aside in the FY2026 budget for debt repayment between December and June. She said the district expects to begin monthly payments and maintain continuing funds for future months while Malden & Jenkins conducts an internal-controls review requested by the State Board of Education.

Lehi Smith, president of the Winston Salem Foundation, told the board the "All In for Our Schools" campaign had raised private donations pledged to immediate needs and a Futures Fund to help address district debt. "As of last week, we are happy to share that we have raised $5,800,000," Smith said during the meeting, and described three funds for classroom supplies, student success, and debt relief.

Moore noted a difference in public statements about the private total and told the board she would rely on the foundation's finalized accounting as the basis for applying funds. "We know that $4,000,000 has been raised," Moore said during her update while acknowledging the foundation said additional amounts had been pledged; county commissioners adopted a dollar-for-dollar forgiveness resolution tied to private fundraising that would forgive up to $5,000,000 of the district obligation if private funds reach that level.

The superintendent also summarized prior oversight: the Office of the State Auditor’s investigative review produced findings and the district’s independent auditors (4 of Us/Mazars) provided preliminary numbers. Moore said the district has requested a Malden & Jenkins internal-controls review and will present updates at a Nov. 18 board workshop. She described ongoing steps to fill finance leadership roles, implement a new ERP system and strengthen internal controls.

Moore gave a timeline for repayment actions: payments toward ESS and child-nutrition loans were planned to start in December, with targeted monthly amounts contingent on final private fundraising totals and continued county flexibility. "We will need to remain vigilant in our budgeting and spending for the next few years until we zero out that negative fund balance," she said.

Next steps: Malden & Jenkins’ review, the Nov. 18 budget workshop and continued private fundraising and county coordination. The board did not vote on new debt-reduction authority at this session beyond items already on the agenda.