Belle Vernon takes loan to stay afloat
Belle Vernon School Board on Monday authorized a $3.1 million tax anticipation note from First National Bank to keep the district afloat through the remainder of the school year while the state’s budget impasse continues.
Superintendent John D. Wilkinson said the drawdown note, which is similar to a line of credit, will be used to get the district through the 2015-16 year.
Lou Rood, board vice president, said the loan can be used as needed but the district will have to pay interest on the money used. Wilkinson said the money the district has to pay in interest, which was not budgeted for, could be better spent on students.
He said the district will likely begin using funds from the note near the beginning of April.
Wilkinson said this money will help the district operate until June, but at a barebones level.
Rood said the state budget impasse is to blame. “It all falls on the state legislators and the governor,” he said.
He said students are suffering because the district is being forced to take extraordinary actions in order to keep the schools operating and to make payroll.
Rood said the district is nearing the end of what it can borrow from a line of credit taken out last year, shortly after the impasse began.
“If we don’t have a balanced budget by June 30, we are held responsible and accountable. (The state) should have one too, but they aren’t held accountable,” Rood said.
Business manager Eileen Navish said the district took a line of credit from PNC Bank in August for $2.1 million. “Because of the impasse, we expect to use all of that money,” she said, resulting in the need for the $3.1 million approved Monday.
In other business, the board unanimously approved the 2016-17 Intermediate Unit budget totaling $5.5 million. The district’s contribution is estimated to be roughly $19,500, which is lower than last year, Wilkinson said.
The board also approved its annual agreement with the Westmoreland County Student Assistance Program. Wilkinson said the agreement includes offering space for the students as well as offering time for the program.