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Fri July 26, 2013
YCS Approves Agreement For Extended State Debt Repayment
The Ypsilanti Community Schools Board of Education Thursday night approved entering into a contract with the state that will allow the district more time to pay off debt and remove Ypsilanti Community Schools from the ranks of Michigan's "deficit districts".
The district has $18.8 million in state aid notes from the former Ypsilanti and Willow Run school districts that are due August 20th. The state will give the district 13 years to pay off the debt.
Washtenaw Intermediate School District Assistant Superintendent of Business Services Brian Marcel says the debt becomes something like a loan against state aid payments.
If the state doesn't feel secure in the district's ability to re-pay the debt, it could intercept tax payments due the district, or withhold state aid payments - a provision it's now requiring of all districts that borrow from the state.
A contract with the state will come back to the school board for final approval most likely at its August 19th meeting.