Panel Eyes Short-term Loan

OFFICIALS DISCUSS INABILITY TO MEET PAYROLL

LINCOLN — Two Lincoln School Board members met with Mary Ann Spears, superintendent, on Thursday to discuss the district’s finances and inability to meet payroll in August.

Dax Moreton, board president, and Scott Davis, member, attended the special called meeting. Kendra Moore, Jim Ayers and Connie Meyer were unable to attend.

Spears said the district currently has $372,000 available in the bank after having to pay a debt service facility payment this month for $700,000.

“We’re carrying quite a bit in negative due to the bond payment,” Spears said. Though she said federal money will be coming in, as well as more property tax revenue and state foundation aid, it will arrive either at the end of August or in September too late to help meet the district’s payroll of $636,000 due around Aug. 23.

“We’ll have a cash-flow problem in August but it will be solved in September,” said Moreton. Spears agreed. Spears said she had discussed a short-term loan with Simmons Bank, where the district does its business, to help meet payroll. She said the district has a $1.94 million certificate of deposit that could be used.

Spears, Davis and Moreton discussed with Crystal Breshears, a master teacher, whether to continue the Teacher and Student Advancement Program ( TAP), which is requiring the district to pay more matching money on the grant that has helped teachers in career advancement, professional development. It is evaluation and performance-based compensation to help raise student achievement.

Spears said she had talked to officials with the TAP program and the payment that had been coming in quarterly would now be sent to the district monthly.

The district’s expenses total $8.8 million a year with payroll taking about 78 percent of the cost.

A discussion on TAP and other programs was in how the district could save money for the 2014-15 school year and not have the same financial problem next year.

“We’re going to have to look at all angles,” Spears said. “We’re already looking for additional grants.”

“There are no easy answers,” Davis said.

Board members and Spears agreed to meet Aug. 12 to give time for the district to receive any outstanding funds owed to it. They will decide at that time if a short term loan is needed to meet payroll.