Auditor Blasts Forsyth County Schools’ Finances, A Cautionary Tale for Davidson County: Audio
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As Davidson County weighs big decisions — from ongoing debates over educator pay to addressing school construction needs in the county’s three school systems — the financial collapse in nearby Forsyth County looms large as a warning.
The North Carolina Office of the State Auditor released a blistering special report on Winston-Salem/Forsyth County Schools, outlining a series of financial blunders that dug the district into an estimated $46 million deficit.
Among the Forsyth findings:
More than $75 million in bonuses handed out even as the district overspent revenue.
Staff positions funded by temporary federal COVID relief dollars that were never cut once the aid dried up.
Staffing levels that stayed high despite declining student enrollment.
311 manual budget overrides for purchase orders.
Over $332 million languishing in suspense accounts that should have been reconciled.
Annual budgets built without a full review of active contracts.
“Winston-Salem/Forsyth County Schools dug itself into a deep financial hole, and it’s going to take real discipline to climb out of it,” said State Auditor Dave Boliek.
The fallout has been severe: mass layoffs, public outrage, and shaken trust. For Davidson County, where taxpayers are being asked to consider major school construction and educators continue pressing for better pay, the message is clear—watch the money closely.
The report doesn’t sugarcoat it: WS/FCS handed out lavish bonuses, overstaffed even as student numbers dropped, waved budget limits like they didn’t exist, parked a staggering $332 million in limbo accounts, and failed to fully review contracts when setting budgets. It’s a perfect storm—fiscal missteps, not malfeasance, but certainly mismanagement.
Triad business and community analyst Algenon Cash put it in national perspective, noting districts across the country are losing enrollment and facing tough budget math:
“Of course, the district’s financial crisis isn’t occurring in a vacuum… Hundreds of job cuts are expected. Financial mismanagement on this scale would be damning in any city. But here in Winston-Salem, it’s the latest chapter in a deepening story — one about lack of imagination, stagnant leadership, and an overall civic structure with no sense of urgency.” Cash opined his statewide concerns in the Carolina Journal.
Educator voices are also rising. Jenny Easter, president of the Forsyth County Association of Educators, blasted lawmakers for turning their backs on schools:
“Their refusal … affects tens of thousands … our district deserves leaders who will demand more from those controlling the purse strings.”
And former educator Maurice Atwood, who has announced plans to challenge Governor Josh Stein if he makes it past the primary, said the governor should have stepped in sooner:
“The disengagement of the Governor from the financial fiasco in WSFCS is a demonstration of both lack of leadership and concern… Every one of those Superintendents should be placed under oath by the SBI as well as all the former Chief Financial Officers to give their account of what happened.”
With big decisions on the horizon, fiscal discipline and public trust must go hand in hand. As construction plans and pay negotiations unfold, the community’s vigilance will be key to avoiding similar pitfalls.
