Ann Arbor Public Schools have gotten some good news about cash flow issues that likely means the district won't need to borrow money to pay salaries next month.
WEMU's Andrew Cluley has more:
Ann Arbor Public Schools officials feared the district would need to borrow money up to three times this school year to handle cash flow issues because of the low fund balance the district currently has. As Ann Arbor Public Schools officials prepared the budget for the current school year, the school board approved borrowing money if fund balance dipped too low at any point in the year to cover expenses.
The budget included spending up to $150,000 on interest to cover the potential borrowing.
November was the first month when district officials thought borrowing might be needed, but the district now believes it can cover payroll and other expenses without borrowing. Chief Financial Officer Nancy Hoover maintains that there might be times in the year when borrowing could still be required. Hoover adds, concerns of borrowing in November have been eased in part because the Washtenaw Intermediate School District has done a good job getting the district's first special education payment and costs for unemployment expenses will also be much less than the half-million dollars budgeted since nearly every laid-off teacher was brought back.
Hoover says however the district will be spending more this year for teachers that have more students in their classroom than covered by the basic contract requirements.