Forsyth County Commissioners reject school district's $32M request to cover shortfall

The Forsyth County Board of Commissioners rejected a plan on Thursday to loan the public school system $32 million to help cover its deficit. 

Winston-Salem/Forsyth County Schools is facing a major shortfall this year after overspending on personnel due to inaccurate financial projections. The school board asked the county to help repay the state and cover the deficit on the condition that the district would pay it back. 

But at a meeting on Thursday, Commissioner Don Martin read a letter from the county addressed to the school district that said fulfilling the request would compromise the county’s own financial stability.

“Our financial advisor, consultants and bond rating agencies have emphasized that strengthening the county's fund balance is essential to preserving the county's triple-A bond rating," Martin said. 

He added that the school district also has over $5 million in unpaid obligations to the county for school resource officers, nurses, fuel and lease payments. While the county is willing to establish a payment plan for those charges, the commissioners voted 6-1 to reject the district’s ask for additional funding. 

Earlier this week, county and school officials met with members of the North Carolina Department of Public Instruction to discuss the district’s deficit. Martin said he’s also been in talks with Rep. Donny Lambeth to explore the possibility of the state providing a loan to the school district.

While nothing has been decided, Martin said that idea “at least seems to be moving in the right direction.”

“We will continue working with you, the North Carolina Department of Public Instruction and the North Carolina General Assembly as efforts continue towards restoring fiscal sustainability, accountability and improved financial management of public education funds,” Martin said, reading the county's letter. 

Commissioner Malishai Woodbury was the only member against the decision to reject the $32 million ask. She proposed a two-cent property tax increase to fund the district’s request, but received no support. 

"Maybe not tomorrow, but down the road, if we don't get a handle on trying to figure out how to support public schools, it will be our problem ... collectively, whether you have children or not in this county," she said. 

In a written statement, school district officials said that while they are “disappointed” in the decision, they understand the commissioners’ position.

"Maintaining the financial health of the whole county – including WS/FCS – is essential as we strive to provide the best outcomes for our students and ensure our community thrives," the district said in the statement. "Responsible stewardship of public dollars is – and will continue to be – a district priority."

The district has already begun implementing a series of cost-saving measures to reduce the deficit for this year and next. School officials say they will continue to collaborate with state and local leaders to find other solutions. 

Interim Superintendent Catty Moore will provide a financial update at the Board of Education’s next meeting on June 10. 

Amy Diaz covers education for WFDD in partnership with Report For America. You can follow her on Twitter at @amydiaze.