The Iowa City School Board is considering taking out a $3-million loan to cover expenses for March, after board members discovered the district’s financial situation was rockier than previously thought.
A $10-million transfer was made from the district’s health insurance fund to its general fund in September, a move that was -not- initially approved.
Superintendent Matt Degner says the board didn’t find out sooner because of inaccurate data and insufficient financial reports.
“I’m saying I have to take better responsibility for managing that financial picture in our district and the recommendations that our team brings forward to you,” Degner says, “and it’s also now my job and our job to make sure that we address that and we fix that moving forward.”
Degner says board members are now considering a short-term loan, a long-term loan, and possible budget cuts in order to meet financial obligations.
“It’s obvious now, we have extremely limited reserves,” Degner says. “We are currently trying to limit spending through the end of the year, as we talked about. Yes, it would have been nice to have the whole school year to make those decisions. That’s what we’re actively doing now.”
The board is set to consider reductions for next year’s budget at its next meeting on February 24th.
Degner says the district went beyond its limits this year with the things it tried to provide for its students, including large increases in the number of special educators, support staff and teachers.
(By James Kelley, Iowa Public Radio)