Some local school districts are having a hard time finding interested lenders this year. Many schools depend on borrowing short-term loans to balance their yearly budget, to fill in shortages while waiting for quarterly state aid and property taxes.
The D.C. Everest School District says they had no problem borrowing about $9.8 million this year. Edgar School District however, says they saw a decline in bidders this year when they tried to borrow about $2.3 million.
"There are times throughout the year when your payroll and expenses would dip dangerously into that fund balance. In fact, it would erase it. So you need to short-term borrow at the start of th year and that gets you throughout the year," says Mark Lacke, Edgar School District Administrator.
The short-term loans are borrowed over a 13-month period and paid back through state aid and property taxes.
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