The Lafayette Journal & Courier has a brief article reporting that the Lafayette School Corporation will be borrowing $17.7 million to meet its obligations in 2008 until property tax disbursements are made by the state. Apparently this is not at all uncommon around the state.
I wonder how much money is spent servicing the debt on these short term loans. Seems to me there is some potential for savings here by getting the disbursements to the school corporations in time to meet the schools’ obligations.
This has been a regular part of our lives in Lake county since 2003. And it’s not just the school corporations that are needing the loans. I am afraid to know how much interest debt we are paying on already.
The state balances the annual budget every December on the backs of schools and other entities.. by withholding their end of the year draw.. which means the state budget balances.. and others have to pay the interest.
Sucks, but that’s the way the system has worked for decades…