Winston-Salem/Forsyth County Schools is moving forward with major cuts to avoid a deficit next year.
But this year’s shortfall is still a problem — and could be worse than projected.
At a school board meeting on Tuesday, Interim Superintendent Catty Moore identified about $45 million in cost-savings for next year’s budget.
Though some board members had concerns, Moore said she was eliminating transportation for students attending choice schools, which does not include magnet schools. This would impact about 2,500 students.
“No district does this. Can't afford to do this. It is incredibly inefficient. It is hitting our transportation efficiency rating, which cost us $2 million last year," Moore said. "It doesn't minimize the impact to the families that will now have to make a choice, and it won't minimize the disruption to schools who now will feel the impact of that choice ... But it is logical, it makes sense, and it is a large amount."
That transportation cut alone is estimated to save about $3.5 million.
Moore is also asking principals to make reductions in positions to better align with state allotments. This will affect around 200 positions, though the hope is for impacted staff to fill other roles.
The estimated savings for this item is $8.75 million, which Moore said represents about 20% of the overall budget reduction. She said that reflected the district's goal of making cuts that least impact personnel.
"We may determine after the reductions are made that the juice was not worth the squeeze, but we have to do what we have to do to balance," Moore said. "You can do whatever you want when you have the money. When you don't have the money, you've got to make decisions and choices, and they're going to be hard and they're going to hurt."
As for this year’s budget, the school board voted to borrow up to $6 million from the Child Nutrition Department’s savings. That, plus other revenues, brings the deficit down to $28 million — for now.
Moore warned that the district may owe federal withholding payments to the IRS, which could mean the shortfall is higher than projected. Officials are investigating the issue and will have more information soon.
To reconcile the current projected deficit, Moore said she is working with vendors to negotiate payment plans, and proposed asking the county commissioners for $18 million to help repay the state. The school board recently asked the county for a $32 million loan, but was rejected.
Amy Diaz covers education for WFDD in partnership with Report For America. You can follow her on Twitter at @amydiaze.