Brownsville School Directors take out third loan, motion to close school fails
Brownsville Area School District on Thursday became the second Fayette County district to take out more than one tax anticipation note (TAN) in light of the state budget impasse.
School directors approved a resolution for a TAN with First National Bank for $1.5 million at a rate of 1.25 percent, its third TAN since June. The resolution also includes a subsidy interceptor agreement with the Pennsylvania Department of Education, meaning, as soon as the state passes a budget, the subsidies that come in will go directly to paying off the $1.5 million.
The motion passed by a vote of 8-1, with School Director Andy Dorsey voting no.
“Our people in Pennsylvania should be worried about our school districts right now,” Dorsey said. “We are actually entering a crisis mode. The only people profiting from this are the banks.”
School Director Richard Gates said that while he voted yes for the motion, he does not agree with taking out another loan.
“They’re (the legislators) not worried about our kids, they’re not worried about our senior citizens, they’re not worried about our employees, they’re worried about the politics,” Gates said.
For the second month in a row, Dorsey questioned how the district is going to pay back the interest on the loans.
Business Manager Bill Boucher said the interest costs the district about $2,800 per month per loan.
“The interest on this has to come from somewhere,” he said. “It wasn’t budgeted, so you have three options. It’s going to come from taxpayers. Option two, it’s going to come from us, as a board, having to cut programs and hurting our children. Or, option three, us as a board cutting jobs in this district.”
Before the board voted on the motion, Dorsey suggested the board consider closing down the school until the budget is passed.
“Until we put pressure on the legislature, they’re not going to do anything,” he said. “My suggestion is to stand up and close the doors until a budget is passed.”
School Director Gary Seelye said he would not be in favor of doing that.
“I believe it would be very detrimental to our students,” Seelye said. “We’d end up having an extended school year. They lose the continuum they have in the classrooms. The employees would be hurt.”
Dorsey said while he agrees that such an action would hurt students and teachers in the short term, he said he’s worried about the long-term consequences of continuing to borrow money.
“In the long term, how are the students going to be affected when we don’t have the money to pay for a proper education?” Dorsey said.
Dorsey made a motion to close school doors at the end of classes on Friday, Jan. 8, 2016, until a state budget is passed.
“It’s not a motion I want to make, it’s not a motion I expect to get a second … even if it goes down as an 8-1 vote as a no, at least it’s on the record,” Dorsey said.
The motion received a second from School Director Andy Assad; however, it failed, as Dorsey was the only director who voted in favor of it.
School Director Ronald Dellarose said he agrees with Dorsey’s sentiment, but does not want to interrupt the school year of the students in the district.