Forsyth County is not going to float Winston-Salem/Forsyth County Schools a loan to help pay off its debt, but another option to help the beleaguered school district is being considered among commissioners.
Commissioner Tonya McDaniel told interim Superintendent Catty Moore last week that she is working with commissioners on a plan to forgive the $5 million the school district owes the county. The school district did not pay for county-supplied school resource officers and nurses. The $5 million is part of the $37 million deficit from the 2024-25 fiscal year.
“You do owe the county a debt, and I am working with my colleagues to work on consensus to forgive what’s owed,” McDaniel said.
Moore responded, “I appreciate you guys even choosing to have the conversation at any point. Ultimately, that’s your call. Right now, I’m just thankful for the grace and patience as we work through it, especially with the other vendors.”
The exchange took place after Moore updated commissioners on the school district’s financial picture. Besides money owed to the county, the school district also owes a substitute teacher contractor $5.7 million and a janitorial contractor $4.2 million.
In addition, the school district must repay itself between $15 million and $20 million.
The district also owes the state $3.4 million. Interest on what the school district owes the state began accruing on Oct. 1 at a monthly rate of .4%. The school district has to start paying that penalty in January.
Debt forgiveness would be an ideal scenario for the school district, which lacks the authority to raise its own revenue. That leaves the school district with few options other than cutting costs.
Moore talked about what it would look like to repay the debt at a rate of $300,000 per month. Such measures could include more layoffs and cutting the local supplement for teachers, principals and assistant principals and the classified longevity pay.
“All of these things keep me up at night,” Moore said.
In August, commissioners transferred $8.4 million to the school district, which used $7.9 million to pay down what it owes the state. As required by law, the rest of the money was shifted to the county’s charter schools.
lodonnell@wsjournal.com
336-727-7420
@lisaodonnellWSJ
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