School Board approves loan for $1.6M

The School Board voted last week to allow the cash-strapped district to take out a $1.6 million loan to cover payroll costs this fall.

Interest and fees on the loan will likely cost the district about $12,000, said Jill Turner, the district's business manager.

"We have to take it out to meet payroll," she said. "I'll only take out what I need."

The district's general fund was virtually wiped out by budget cuts this spring, forcing the district to borrow money upfront to meet costs. In November, Turner expects the district to receive about $10 million in property tax funds, which will enable her to pay off the loan, she said.

Turner anticipates she will take out a few thousand dollars this month and early next month. She plans to take out most of the money on Oct. 29 to cover payroll costs for that month.

As a result of the budget cuts, the district's $22 million budget for this school year is 14.8 percent lower than last year's.

Still, Turner anticipates that the district will likely need to borrow money again next year to cover costs.

"It's really hard to project whether we'll need it next year," she said, "but most likely we will need it."

Contact staff writer Hannah Guzik at 482-3456 ext. 226 or

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