Flint schools eyes extension to deficit elimination plan
Richard Carpenter, the new CFO of the Flint School District, listens during a meeting in the cafeteria of Southwestern Classical Academy in Flint on July 30, 2014. The Flint School District board members discussed the deficit elimination plan. The district has a $20.4 million deficit. Laura McDermott | MLive.com
(Laura McDermott | MLive.com)
FLINT, MI – The discovery of $1.3 million owed to the Flint School District for an after-school grant meant the district could pay its teachers and staff this week.
Interim Superintendent Larry Watkins said his new financial team received notice from the Michigan Department of Education that a portion of funds were withheld from the 21st Century grant, which funds after-school programs for low-income students who attend low-performing schools.
The money was released from the state on Friday and hit the Flint School District’s books on Monday, Sept. 29, Watkins said.
The Flint School District is in the midst of a $20.4 million deficit and has closed buildings, outsourced jobs and laid off teachers to trim costs.
Watkins attributed the delay in reimbursement on changes in Flint’s financial office.
“Through their efforts, they found this,” Watkins said.
He said the district previously paid for the after school program expenses out of the Flint School District's general fund and the $1.3 million grant will reimburse the general fund.
Before the district knew of the pending grant funds, the district was planning on asking for a loan against its state aid to make payroll.
In August, the board approved borrowing up to $17 million against its state aid.
This isn’t the first time Flint schools came close to not having enough money to make pay teachers and other employees.
The district approved going after about $6 million in loans from the state in order to pay teachers in February.
Dominic Adams is a reporter for The Flint Journal. Contact him at dadams5@mlive.com or 810-241-8803. Follow him on Twitter, Facebook or Google+.