Brighton School Board Votes to Establish Line of Credit
June 3, 2018
The Brighton Board of Education voted Monday night to establish a line of credit to meet payroll during the summer months until the first state aid payment arrives. Superintendent Greg Gray says it's necessary for school districts need to borrow during the summer months because they receive no state per-pupil aid payments during that time.
The Brighton Area Schools will be borrowing $2.5 million this year. The state’s fiscal year runs from October 1st to Sept. 30th, whereas the fiscal year of school districts in Michigan extends from July 1st to June 30th. As a result, there is always a lag time until the first state aid payment arrives in the fall. Despite the fact that there is no school in the summer, school districts still must pay the wages of teachers and other employees and meet other expenses.
Assistant Superintendent of Finance Maria Gistinger says that with Brighton's improving financial position, she anticipates the district will not have to borrow at all by next year. Gistinger also says the district is expecting its fund equity to increase to about $5 million by the end of the current fiscal year. (TT)