Brandon Twp.- The school board unanimously approved a total of $2.5 million in state aid borrowing for the 2015-16 school year.
This is an increase of $500,000 from a previously approved June resolution to borrow $2 million for general operating purposes only. It is separate from a larger total owed to the state regarding bond payments. The increase comes as administrators anticipate settlements of contracts with employees including teachers. Negotiations are ongoing with every union in the district.
‘None of the unions have accepted our offer, but they are all aware of our offer,? said Jan Meek, executive director of business services. ‘The board has authorized increases to all employees because there have been no raises in five years… I can’t get into details, but we are more stable than we have been in five years and we want to do what we can for employees although we know there will be a continued student loss. We hope to get things settled soon.?
Every year, the Brandon School District, as well as many other districts, borrow money from the School Bond Loan Fund to assist with cash flow needs as districts do not receive state money in September. The state authorized Brandon in June to borrow $2 million, but Meek will request more due to contract negotiations.
The district will repay the loan in seven monthly installments beginning in January.
‘There is not an accumulative effect of the state aid borrowing unlike the bond debt,? said Meek.
‘We are borrowing the same amount as we did last year, and also paid off last year.?