The Genesee Intermediate School District has filed a lawsuit against the Flint School District over a disputed $8.6 million in tax money that was meant for a different purpose. The funds were supposed to be used for vocational training and auditors have said that it was improperly spent on general operations for the financially troubled district.

According to MLive, GISD Superintendent Lisa Hagel said she has tried in good faith for over a year to reach an agreement on repayment, but nothing has come to fruition. The funds had been meant for the Genesee Area Skills Center.

Just a few weeks ago, the Flint School District also came out with a revised deficit of $20.4 million. That doesn't include the money owed to the GISD. Flint schools didn't include the money owed to the GISD in their last audit by the state. They have said that the Michigan Department of Education has allowed both sides to negotiate repayment. But Hagel has said she is skeptical that negotiations between the two districts will be productive and is worried about the increased deficit. Twenty superintendents from school districts throughout Genesee County have signed letters saying they support the GISD in its efforts to recoup the money.

The lawsuit was filed in Genesee County Circuit Court on Tuesday, July 8th. A special meeting was scheduled for Wednesday evening which was to include a closed door session to discuss a legal opinion on the GISD debt.

Interim Superintendent Larry Watkins is also unsure how the lawsuit will affect the district's deficit elimination plan. The district has until the end of the month to revise and resubmit its deficit elimination plan to the state because of its deficit growing.