Flint School Board Votes to Borrow Money, Revise Deficit Elimination Plan
In a special meeting on Monday night, the Flint School Board voted to borrow money and revise their deficit elimination plan.
According to WNEM, the district faces a $10.4 million deficit, along with owing the Genesee Intermediate School District $8 million for misspent funds. On the decision to borrow money, Interim Superintendent Larry Watkins said "it was too close. It was a daily concern, But now we know for the remainder of this school year, staff will be paid."
The district has lost around 700 students since September causing their state aid to decline. The district had asked to borrow $15.6 million to help with the cash flow problems, but the state will only allow it to borrow $5.9 million. Watkins said this will help in the short term but they must now focus on the bigger picture. The district's turnaround plans and debt payback will only work if they don't lose nearly as many students in the next year.
The Flint School Board will meet again on Wednesday night to hear potential staffing cuts and changes.