From 2008 to 2011, North Forest ISD was consistently ranked "academically unacceptable" by the Texas Education Agency. It was placed on probation in June 2008, and on July 31 the TEA dismissed the school board, which was approved by the state on October 15. The TEA stated that in the year leading to July 2008 the district did not meet payroll and that several banks had denied the district short-term bridge loans. The board members decided to appeal in the federal courts.