Skatrud was a physical education teacher at Yates Mill Elementary in Raleigh.
Wake County Schools Chief Communications Officer Michael Evans says Skatrud resigned from the school on Tuesday.
At a hearing Wednesday, a judge cautioned him not to have contact with the two 8-year-old girls who are allegedly his victims.
"No contact with any persons under age 17 without direct supervision," Wake District Court Judge Craig Croom said.
That prompted a question from Skatrud.
"My own children, also," he asked.
Skatrud has two small children who live with him and his wife at their house in west Raleigh.
Several neighbors who say they are well acquainted with Skatrud repeatedly expressed utter shock over charges that the physical education teacher had taken indecent liberties with students.
Even Skatrud's attorney says he understands the concern.
"Any time there's an allegation like this the community wants to take it extremely seriously and it should be taken seriously," Skatrud's attorney Hart Miles said.
Miles says he wants the truth to come out. So does prosecutor Melanie Shekita.
"We're still looking into some matters that were brought up during the course of their investigation," she said. "I wouldn't preclude that, but I'm not sure where the investigation will lead at this point. I know they are still actively working the investigation, though."
Wake County schools perform background checks on teachers.
They would have found nothing on Skatrud. A background check by ABC11 Eyewitness News found no criminal history.
Skatrud is currently in jail under a $150,000 bond.