State orders WS/FCS to explain efforts to resolve financial challenges

The North Carolina Department of Public Instruction is concerned about Winston-Salem/Forsyth County Schools’ looming budget shortfall. 

The district overspent its budget last year by about $16 million, prompting a dip into fund balance and staffing cuts. Now, the issue is getting statewide attention. 

NCDPI's Chief Financial Officer Alexis Schauss relayed the situation to the State Board of Education at a recent meeting. 

"The immediate concern is cash flow and having sufficient funds to make their payroll, unless they receive additional funding through their county commissioners," Schauss said. 

She noted that there’s an increasing number of school districts struggling with their finances due to a declining student population, and other factors. 

Still, the state has directed the Winston-Salem/Forsyth County Schools Board of Education to provide a detailed explanation of how it’s mitigating the shortfall by May 15.

A spokesperson for the district says officials are working diligently to “right-size the budget," and have sought assistance from outside experts in public school finance administration.

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