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Pope County Tribune - Starbuck Times
Written by Chad Koenen - Starbuck Times New Editor   
Wednesday, 03 March 2010 07:55

GHES receives private loan to make up state funding shortfall


Glacial Hills Elementary School may not need to sell future state aid payments afterall.

During its regularly scheduled meeting on Monday, Feb. 22, the GHES Board approved a motion to take out a $25,000 loan from a local individual who has asked to remain anonymous. The move comes just three weeks after the board approved selling future state aid payments to a company known as Charter School Capital to help bridge a gap between a decrease in monthly state aid payments and an increase in state aid holdback. As part of the agreement with the school, the loan will be paid back at a five percent interest rate over the next year.

The loan is necessary to help make up the immediate capital loss at the school because of an additional 17 percent holdback from state funding. The additional holdback money will be used to help balance the state budget and is scheduled to be repaid in the fall.

While selling the future state aid payments would bridge the immediate funding gap left by the state, and leave the school's reserve funds in tact, selling the state aid payments to Charter School Capital came at a steep price.

According to GHES Director Deb Mathias the school could have taken up to a 10-12 percent loss on the state aid payments the school is selling by the time all of the discount and various fees are paid. When news of a potential loan agreement between the private individual and the school came to the forefront, the school elected to hold off with the final sale of the state aid payments to Charter School Capital in favor of the private loan.



In other news


• Approved minutes for the November 23 and February 2 regularly scheduled, and December 14 special Glacial Hills Elementary School Board meetings.

• Welcomed Ranae Spore and Margaret Strand to the GHES Board. Both Spore and Strand were elected to a three-year term on the school board during the GHES Annual Meeting on January 25.

• Approved the following nominations: Vince Koppa and Lara Amundson as co-chairs, Laura Wilson as vice-chair, and Mary Giese as secretary/treasurer.

• Heard Directors Report from Mathias who stated the Charter School Day at the state capitol is scheduled for March 9. Mathias said the event allows charter schools a chance to visit with legislators. In honor of Read Across America Day, Mathias said students will be allowed to go to Arrowwood in Alexandria if the students read enough books in advance of the March 2 event. Also on March 2, students will be served green eggs and ham for breakfast. Mathias told the board that conferences are scheduled for March 4 and March 11 at the school. Kindergarten Roundup is scheduled for March 18 at GHES. Six siblings and three other potential kindergartners have already registered for kindergarten next year.

• Heard from GHES Board Member Laura Wilson concerning a community garden at GHES. The board decided to form a committee that will help organize a community garden near GHES.

• Tabled the 2010-2011 preliminary budget.

• Approved a request for bus transportation from the local school district.

• Approved setting the mileage rate for school employees at the federal rate.

• Approved a $150 per day plus expenses stipend with a maximum of $598 a year, for board members who must take time off of work for board training or activities.