After over a year of reflection, deliberation, and tough decisions, Winston-Salem/Forsyth County Schools’ debt is officially eliminated.

The announcement signifies a remarkable turnaround in the district’s financial situation. In the summer of 2025, district leaders learned that WS/FCS was facing a budget shortfall of $43.4 million. Since then, the district has made significant spending cuts, instituted new financial control systems, and worked with a dedicated team of community partners to address the deficit.

“The community commitment that we have witnessed is a great example of what can happen when we have collaborative efforts that are meaningful and well-managed,” Superintendent Dr. Don Phipps said. “I am astounded at what was achieved at a time when everything seemed to be lost. It is a testament to our students, to our teachers, and to everyone who supports their efforts.”

That impact included nearly $10 million raised by the WS/FCS Education Foundation and their All In For Our Schools campaign. Fueled by donations from individuals, families, and businesses throughout the county, as well as debt forgiveness initiatives with vendors and local government, the campaign was indispensable for reaching this point. Marni Eisner, executive director of the WS/FCS Education Foundation, thanked everyone who helped make the campaign a success.

“Every goal we have as a community depends on strong public schools and investing in our youth,” Eisner said. “We hope you’ll continue to stand with us, because together, we can build on this momentum and build an even stronger future for every one of our students.”

Debt reduction efforts were so successful that the district will begin its new financial year with a positive fund balance, although the exact amount is yet to be determined. More information on the fund balance will be available once the district’s audit is completed later this year.

Dr. Phipps explained that this fund balance will not be enough to rehire for positions affected by recent reductions in force. While some jobs could potentially be restored once the new state-mandated raises and bonuses are implemented and district leaders have more time to examine their impact, decreases in state allotments and the non-renewable nature of fund balance make broad rehiring financially unrealistic.

However, because the district passed a balanced budget this year, Dr. Phipps is confident that the district will have plenty of money to cover the new raises and bonuses without having to seek more local supplements.

“We don’t have to make an additional request to our commissioners,” Phipps said. “We feel very comfortable that we can accommodate that with what we have.”

WS/FCS has been battle-tested by its struggle with this debt, but looking towards the future, district leaders expect brighter days. From now on, anyone who chooses to learn and work with WS/FCS will be rewarded with a team that knows how to weather a storm.

“You’ll never find a more supportive community, and the proof is in what we’ve shared with you today,” Phipps said.

View the announcement and the following press event here: