The Winston-Salem Forsyth County Schools Board of Education voted this week to send a letter to the state legislature asking for help reconciling its deficit.
The letter was made public Thursday afternoon on the district’s website.
In it, the board requests a special allocation of up to $50.1 million to pay the debt. That comprises the current estimated budget deficit, which is $46.1 million, plus the $4 million the district borrowed from its Child Nutrition department.
The deficit includes $13.7 million owed to the state for staffing overages, and $15 million owed to three large vendors, including contracted substitutes, custodial services and school resource officers.
“Without legislative support, the district would be left open to litigation for the vendor debts,” the letter states.
The state debt would also begin accruing 1% interest— $137,000— this month. The district asked the state to waive this penalty, but a decision has yet to be made. It’s also possible the district owes penalties or interest to the IRS.
WS/FCS officials asked Forsyth County Commissioners for $8.5 million to help with the deficit, but a decision on that won’t be made until Aug. 14. In the letter, officials say state assistance is critical.
“WS/FCS would need to take draconian measures to further reduce expenses — likely for years — to free up funds to pay this debt,” the letter states. “Given the extensive cuts already made, we would not be able to shield schools and students from the impact of further reductions.”
Officials say the district would have to eliminate additional staff, reduce vital programs, transportation and other services. That’s on top of the nearly 200 school-based positions and 81 central office positions that have already been cut, and the elimination of transportation for students attending choice schools. So far, the district has made $45 million in reductions.
“Supplemental programs, such as athletics and arts offerings, that enrich our school communities and grow our students into well-rounded individuals, would not be spared,” the letter states. “These measures would have ripple effects across the economy of our region, as WS/FCS is a regional employer and significant purchaser of goods and services from local businesses.”
The letter was signed by Board of Education Chair Deanna Kaplan, and sent to Rep. Donny Lambeth, and other local legislators.
At the school board meeting this week, Kaplan said she is working to set up a formal meeting with the legislative delegation to review the request potentially in August.