Lyle schools may start short-term borrowing
Published 5:00 pm Saturday, August 13, 2011
One area school amay borrow to make up for missing state funds, at least temporarily.
Lyle Public School Board members will meet at Lyle High School at 7 p.m. Monday to discuss school business, primarily to allow Superintendent Jim Dusso to pursue opening a line of credit for short term borrowing.
In recent years, many school districts across the state have opened lines of credit to borrow money for cash flow purposes. Austin Public Schools opened a line of credit for short term borrowing earlier this year in anticipation of the state’s budget woes.
Legislators have shifted state aid payments to school districts multiple times over the past decade. The most recent shift, about $700 million as part of the state’s budget solution, only gives districts 60 percent of its aid this year, with the rest paid off in subsequent years.
Though districts get all of their money eventually, the shift means districts will suffer from cash flow issues. Lyle is receiving only 60 percent of its $100,000 state allotments this year. Dusso said during last month’s board meeting that Lyle would run out of resources if the recent government shutdown lasted longer than a month.
Board members will also discuss raising lunch prices by 5 cents at Monday’s meeting.
There are no delegations scheduled for Monday’s meeting. In recent months, the board has come under fire for changing its open meeting policy and moving quickly to appoint Dusso, who served as Lyle High School’s principal for the past two years, to the superintendent job after former district head Jerry Reshetar resigned in April.
Dusso and Board Chairman Dean Rohne were unavailable for comment.
Lyle School Board meeting
When: 7 p.m. Monday
Where: Lyle High School