Allentown schools to take out second loan because of budget impasse
The Allentown School District is looking at taking out a $50 million loan — again — to stay afloat during the state budget impasse.
"It's beginning to have nothing but nightmarish consequences," Allentown superintendent says of budget impasse
Jacqueline Palochko Contact Reporter Of The Morning Call February 12, 206
ALLENTOWN – The Allentown School District is looking at taking out a $50 million loan — again — to stay afloat during the state budget impasse. At Thursday's school board finance committee meeting, the district discussed taking out a second loan because the district could run out of money in April if no state budget is passed by then. The district took out a loan in October for $50 million, but only used $1 million of that in December because district officials were told funding from the state was going to start coming in. The $1 million was paid back, and the district paid about $1,800 in interest, Chief Financial Officer Jack Clark said. The district received about 47 percent of its total 2015-16 allocation in late January from the state. But the district says it's not enough, which is why it needs to take out another loan. School director Robert E. Smith Jr. asked if the district should take out more than $50 million. Clark said the district is exploring if it could borrow as much as $65 million. "We have money to take us until March, but we're going to come up short in April," he said.
Post a Comment