Pontiac schools get another $10 million emergency loan from state
Pontiac schools are getting an emergency $10 million loan from the state to pay its employees and vendors.
This is the second $10 million emergency loan the state has given the district. The previous one was made last year.
But this new loan will allow the district to make payroll and keep its transportation and food vendors ahead of the new school year, says Terry Stanton of the state Department of Treasury.
“The district indicated that they needed the funds for employee payroll, and to pay critical vendors, transportation and food vendors and the like, to ensure that those services will continue,” says Stanton.
Meanwhile, the district’s general fund deficit is down to about $36 million, from more than $50 million in 2013.
"Clearly the district is making some headway in addressing its general fund issues,” says Stanton. “And the superintendent talked [to the state emergency loan board] about some of the academic successes that they've seen and experienced.”
Benton Harbor schools are also getting another emergency loan: this one for $1.4 million.
That district previously received two separate $2 million dollar loans.
Calls to the Benton Harbor and Pontiac superintendents were not immediately returned.