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Avella schools borrow $2 million

2 min read
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Avella Area School Board voted Wednesday to borrow $2 million to allow the district to continue to operate in the absence of state funding.

Business manager Laura Shola said the district has only enough money in its general fund to operate through November. She said the loan will allow the district to operate until January. If a budget is not passed before the new year, Shola said the district will be required to borrow additional funds.

“This is the first time we have had to do something like this,” Shola said. “Last time the budget was late getting passed, the budget was adopted in October and we were OK.”

Shola said it appears unlikely the state budget impasse will end in the near future, so the district “decided to get the ball rolling” for the loan.

Shola said the district is current on all bills excep those pertaining to cyber and charter schools.

“The tuition can be deducted from subsidiaries,” she said.

She said the district has not taken any measures to boycott the state’s actions, but said the situation is extremely frustrating.

“The auditor general and the Department of Education have been checking in on our situation,” Shola said. “I called to let them know we were borrowing the money.”

Avella isn’t the only district in the county to borrow funds to continuing operating as Pennsylvania’s state budget stalemate has dragged through four months.

Districts statewide are suffering, and The Associated Press reports that some districts are considering shutting down in an effort to get the state to release funds.

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