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Minnewaska Area Schools Borrows To Cover Delays PDF Print E-mail
Pope County Tribune - Starbuck Times
Written by Amy Chaffins - Pope County Tribune New Editor   
Thursday, 24 June 2010 09:18

School district borrows to cover state aid delay


In order to cover for a delay in receiving its state aid payments, the Minnewaska school district will borrow $2.9 million to bridge the gap between when its bills come due and when the state pays out its promised aid.

Tuesday evening, during the Minnewaska Area Schools Board of Education meeting, the board authorized selling and issuing its General Obligation Aid Anticipation Certificates of Indebtedness for $2,905,000.

According to cash flow schedules presented to the board by Superintendent Greg Ohl, without the $2.9 million influx of cash, the school district would face a negative cash flow beginning in April of 2011 and bottom out at $2.1 million in the red in August of 2011.

However, with the $2.9 million bond, Minnewaska Schools will remain in the black until the district is scheduled to receive its next round of state aid in September of 2011 and pay back the $2.9 million bond at that time, as well.