Ashland schools take out a loan to pay employees

Ashland School District will take out a $1.6 million loan to cover payroll costs this fall.

Interest and fees on the loan will likely cost the district about $12,000, said Jill Turner, the district's business manager. She expects to be able to repay the money after receiving about $10 million in property tax funds in November.

The school board voted last week to allow the loan.

The district's general fund was virtually wiped out by budget cuts this spring, forcing the district to borrow money upfront to meet costs.

Turner anticipates she will take out a few thousand dollars this month and early next month. She plans to take out most of the money on Oct. 29 to cover payroll costs for that month.

As a result of the budget cuts, the district's $22 million budget for this school year is 14.8 percent lower than last year's.

Still, Turner anticipates that the district will likely need to borrow money again next year to cover costs.

"It's really hard to project whether we'll need it next year," she said, "but most likely we will need it."

— Ashland Daily Tidings

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