Frazier School Board approves loan, if needed
Frazier School Board took a step toward securing a line of credit that will be needed if the state budget impasse is not resolved within the next two months.
At its regular meeting Monday, the board voted unanimously to authorize the administration to obtain a revenue anticipation loan of up to $2 million if the need arises.
Business manager Kevin Mildren said the district’s financial situation is currently not dire, but as the budget impasse continues indefinitely, the district could be forced to borrow funds to cover general operating expenses through the remainder of the school year.
The move by the board gives Mildren the authority to approach local banks regarding a loan, he said.
“Based on current projections, we’re OK through the end of April,” Mildren said. “Hopefully the budget is passed sooner than later and we won’t have to borrow.”
The district was forced to establish a $1.5 million line of credit in September in response to the budget impasse. The district paid back the loan earlier this year when a portion of state education funds were released to school districts.
The district received about $4.3 million in state education funding in January.
In other business, the board:
n Moved its regular meeting from March 28 to March 21.
n Approved the Intermediate Unit 1 general operational budget for the 2016-17 school year in the amount of $549,552. Frazier’s contribution will be $9,776.33, the same amount as the previous year.
n Nominated Vicki Olexa for election to the Intermediate Unit board of birectors for a three-year term beginning July 1.
n Approved a contract for Superior Lawn Care to service the high school complex for $1,840.65 and the football field for $1,185.80, the same amounts as the previous year.