The North Carolina Board of Education is considering delaying interest penalties for Winston-Salem/Forsyth County Schools’ debt until mid-November.
A final decision will be made Thursday.
The school district owes the state $3.4 million after overspending its budget last year.
That debt carries 1% monthly interest penalties — something school officials asked the state to waive in light of their dire financial position.
The state board initially granted a grace period through Sept. 20. But at a meeting Tuesday, school board members and the district’s Chief Legal Counsel Dionne Jenkins asked for an extension.
“We’re continuing to see declines in student enrollment as a result of the two reduction in forces that we've had to implement," Jenkins told the board. "We're seeing a decline in staff morale, and we are continuing to sink, and we'll have to continue to sink deeper and deeper in debt if we have to pay this 1% penalty on top of what's owed.”
The North Carolina Board of Education ultimately recommended delaying penalties for another two months. That’s on the condition that the district presents a plan to repay the debt, with payments starting no later than January 20.
