Moses Lake School District Might “Loan Itself” Funds to Make Payroll
According to information from the Moses Lake School District, there is a likely $2 million dollar shortfall left after budget cuts.
School District considering what's called an interfund loan
Following failures of their operational levies in February and April, the District originally thought the shortfall was lower. However, after closer examination, the District came up $20 million short.
According to The Center Square, the District said accounting errors and lower enrollments actually made the deficit much larger. The District has cut 100 jobs, but still finds itself $2 million short. It has $11 million for payroll, which is one of its largest expenses.
In order to cover the May payroll, the District is considering what is called an interfund loan. According to The Center Square:
"Interfund loans involve borrowing money from oneself and promising to repay that amount later. Schock said MLSD could use this strategy to cover payroll for May while relying on an additional interest rate to offset any revenue that would have come from capital investment."
District officials say a downturn in enrollments contributed to less funding from the state. The board will vote this week on the interfund loan proposal.
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