If a local, publicly owned industry were to misspend and lose $46 million, putting over 300 people out of work, there are several important things that we expect would happen. First, we expect debts to be paid and the losses to be recovered. Second, we expect that the lost jobs will be restored. Third, we expect the company to enact necessary reforms to prevent future debacles. Fourth, we expect the company to do all it can to rebuild the public trust. And finally, WE EXPECT ANYONE RESPONSIBLE FOR THE MESS TO BE PUNISHED!!!
I am, of course, referring to the largest publicly-owned industry in our community—the Winston-Salem/Forsyth County Schools, and the devastating financial crisis its leadership caused. Yes, there are folks who say, “It’s time to move on.” “It’s time to put those troubles behind us and focus on the future.” The problem is that it’s nearly impossible to move on without closure, and we can’t have that unless and until the guilty parties are brought to account.
Last spring, it was discovered that WS/FCS CFO Tommy Kranz had, over a period of several years, misappropriated and misapplied local, state, and federal funds, leaving the schools in a $46 million hole. That left us unable to pay employees and vendors, or to reimburse the county for SROs and other services. It even left us unable to pay the interest on what we owed to the N.C. Department of Public Instruction. Kranz suddenly retired and got the hell out of Dodge. So did Superintendent Tricia McManus. It was an easy departure for the duo because neither had deep ties to the Triad. McManus kept her permanent residence in Florida while working here, and Kranz had come here from Virginia, where, according to the Richmond Free Press, he had engaged in the same kind of behavior that would repeat itself in Winston-Salem. More on that in a moment.
By late last year, auditors and local prosecutors concluded that no crime had been committed, but they were wrong. True enough, there is no evidence to suggest that Kranz, McManus, or members of the school board profited financially from the multi-million-dollar mess. Nevertheless, according to state law, misappropriation of public funds still falls under the category of embezzlement. The truth is that Kranz deliberately moved funds around in an illegal fashion and caused irreparable harm to over 300 families and to the community at large. The other hard truth is that neither McManus nor the school board bothered to do a deep dive on Kranz’s record in Richmond, Virginia where he had served as CFO and interim superintendent, and where (according to the Richmond Free Press) he kept $8.3 million in a secret “unassigned fund balance” while asking city council to pony up an additional $16 million to make up for budget shortfalls. At the same time, he paid a friend $24,000 for two months of consulting work even though that man was still under investigation by Maryland authorities. When all of this finally came to light, Kranz was fired. Had McManus and the board done their due diligence, Kranz would have never been hired in the first place.
Our community is fortunate to have organizations like the Winston-Salem Foundation and companies like Modern Auto, which stepped up with major donations to help erase the school’s debts and lend a hand to teachers. And we look forward to newly-appointed superintendent Don Phipps taking on the task of reform. He has a sterling reputation and a track record to suggest that he can restore the WS/FCS to a level of performance that we haven’t seen since the days of Dr. Don Martin, who led the schools for 19 unsullied years.
And yet, there’s still the matter of closure. Kranz was incompetent, and McManus was a very compassionate and trusting individual who allowed Kranz to operate in a vacuum. Their shortcomings were dissimilar to be sure, but together they perpetrated an unprecedented crime on our community. They should both be held to account for the damage they caused. Then and only then can we put this ugly chapter behind us and be assured that it will never happen again.
January 27, 2026 @ 8:07 am
Still No Accountability for School Mess
If a local, publicly owned industry were to misspend and lose $46 million, putting over 300 people out of work, there are several important things that we expect would happen. First, we expect debts to be paid and the losses to be recovered. Second, we expect that the lost jobs will be restored. Third, we expect the company to enact necessary reforms to prevent future debacles. Fourth, we expect the company to do all it can to rebuild the public trust. And finally, WE EXPECT ANYONE RESPONSIBLE FOR THE MESS TO BE PUNISHED!!!
I am, of course, referring to the largest publicly-owned industry in our community—the Winston-Salem/Forsyth County Schools, and the devastating financial crisis its leadership caused. Yes, there are folks who say, “It’s time to move on.” “It’s time to put those troubles behind us and focus on the future.” The problem is that it’s nearly impossible to move on without closure, and we can’t have that unless and until the guilty parties are brought to account.
Last spring, it was discovered that WS/FCS CFO Tommy Kranz had, over a period of several years, misappropriated and misapplied local, state, and federal funds, leaving the schools in a $46 million hole. That left us unable to pay employees and vendors, or to reimburse the county for SROs and other services. It even left us unable to pay the interest on what we owed to the N.C. Department of Public Instruction. Kranz suddenly retired and got the hell out of Dodge. So did Superintendent Tricia McManus. It was an easy departure for the duo because neither had deep ties to the Triad. McManus kept her permanent residence in Florida while working here, and Kranz had come here from Virginia, where, according to the Richmond Free Press, he had engaged in the same kind of behavior that would repeat itself in Winston-Salem. More on that in a moment.
By late last year, auditors and local prosecutors concluded that no crime had been committed, but they were wrong. True enough, there is no evidence to suggest that Kranz, McManus, or members of the school board profited financially from the multi-million-dollar mess. Nevertheless, according to state law, misappropriation of public funds still falls under the category of embezzlement. The truth is that Kranz deliberately moved funds around in an illegal fashion and caused irreparable harm to over 300 families and to the community at large. The other hard truth is that neither McManus nor the school board bothered to do a deep dive on Kranz’s record in Richmond, Virginia where he had served as CFO and interim superintendent, and where (according to the Richmond Free Press) he kept $8.3 million in a secret “unassigned fund balance” while asking city council to pony up an additional $16 million to make up for budget shortfalls. At the same time, he paid a friend $24,000 for two months of consulting work even though that man was still under investigation by Maryland authorities. When all of this finally came to light, Kranz was fired. Had McManus and the board done their due diligence, Kranz would have never been hired in the first place.
Our community is fortunate to have organizations like the Winston-Salem Foundation and companies like Modern Auto, which stepped up with major donations to help erase the school’s debts and lend a hand to teachers. And we look forward to newly-appointed superintendent Don Phipps taking on the task of reform. He has a sterling reputation and a track record to suggest that he can restore the WS/FCS to a level of performance that we haven’t seen since the days of Dr. Don Martin, who led the schools for 19 unsullied years.
And yet, there’s still the matter of closure. Kranz was incompetent, and McManus was a very compassionate and trusting individual who allowed Kranz to operate in a vacuum. Their shortcomings were dissimilar to be sure, but together they perpetrated an unprecedented crime on our community. They should both be held to account for the damage they caused. Then and only then can we put this ugly chapter behind us and be assured that it will never happen again.