Ann Arbor Public Schools planned to borrow money up to three times during the school year to address cash flow issues caused by a smaller fund balance than in previous years. The district has now made it through two of the three months that were most likely to require borrowing without needing to seek outside cash.
Chief Financial Officer Nancy Hoover says the planned use of $1.7 million in fund balance this school year, means they may still need to borrow money in June.
Hoover adds, the Washtenaw Intermediate School District helped the district avoid the need to borrow money in December by making a bill for transportation services not due until this month. The city of Ann Arbor also helped the district avoid the need for borrowing in December by quickly remitting some of the taxes they collect for the district.
Hoover says the district's budget included spending $200,000 in interest payments which most of these have now been avoided.
— Andrew Cluley is the Ann Arbor beat reporter, and anchor for 89.1 WEMU News. Contact him at 734.487.3363 or email him email@example.com.