To provide up-to-date and transparent information about the district’s financial condition, this is the November 7 Community Budget Update.
Repayment Plan
WS/FCS leaders presented a plan to repay the district’s remaining debt to vendors over the next two years.
The State Board of Education requested the WS/FCS School Board present a “good faith repayment plan” on November 4 to its Business Operations Committee. The plan presented by WS/FCS School Board Chair Deanna Kaplan and Vice Chair Alex Bohannon identifies a $3.5 million budget for repayment this fiscal year and a proposed $4.2 million in subsequent years’ budgets.
The district owed $11.3 million to NC Department of Public Instruction and $16.1 million to three large vendors – custodial contractor SSC, substitute contractor ESS, and Forsyth County for nurses and school resources officers.
The SSC debt has been resolved through contract negotiation and the DPI debt has been paid in full through private fundraising and repurposed county funds. Most of the debt to Forsyth County has been forgiven, with hopes that private fundraising will prompt the remaining amount to be forgiven as well.
“I want to thank so much the community and all of the partners for all of their efforts and coming together for our school district,” Kaplan said.
For the remaining debts, the plan calls for paying ESS $350K per month through the end of this fiscal year. That would reduce the debt to the vendor from $6.1 million to $3.9 million by June 30. Next year, the payment amounts would reduce to $250K per month until the debt is paid in July 2027.
The repayment plan also sets aside funds to repay a $2 million loan from the district’s Child Nutrition Fund. The plan proposes to pay back $125K per month toward the loan for the rest of this fiscal year and $75K per month in future years. This plan would pay off the debt by November 2027.
The payment plan was funded when the WS/FCS School Board adopted a final budget resolution last week.
Eric Davis, chair of the State School Board, praised the fundraising effort and the district’s progress. He encouraged the board to keep working on this new direction for the district.
“The support demonstrated from the community for our students in Forsyth County is phenomenal. We congratulate you and every one of those who participated in this groundswell of support,” Davis said. “It says a lot about how important public schools are in Forsyth County and Winston-Salem. We hope that you will be able to build on this positive momentum.”