Story Created:
Sep 10, 2007 at 11:50 AM EST
Story Updated:
Sep 10, 2007 at 5:05 PM EST
(WSBT) Because of the recent property tax delays, school districts in Indiana have need to borrow more than usual — millions more.
According to the Associated Press, recent borrowing through the Indiana Bond Bank shows that schools borrowed $236.4 million this summer. That's more than five times the $40.8 million they borrowed last summer.
WSBT took a closer look at what some Indiana school districts borrowed.
The Fort Wayne Community School District borrowed $12.2 million this summer to cover needed costs. That's just over $7 million more than their normal borrowing cost of $4.9 million.
Fort Wayne Community School Business Manager, Jim Coplen, says the interest is what hit them hard.
"The only real effect is the $138,000 in interest ... it unfortunately costs the tax payers more money," says Coplen.
Bremen School District also borrowed money topping into the million dollar range but Bremen officials say the $1.2 million borrowed is comparable to previous numbers.
"It's higher than what we've borrowed in the past but not much higher that recent years," says one Bremen official. "It's simply costing us more money because we've had to pay interest ... over $40,000 in interest."
Plymouth is another school district that was forced to borrow millions. However, Plymouth officials have a more positive outlook.
"It allows us to make payrolls and do our repairs ... if we don't borrow, we don't make payroll," says John Hill from Plymouth High School. "It allows us to stay in business."
Plymouth Community School District borrowed $4,312,071. This is approximately $1 million more than last year.
Click on the story in the Related Content box — "Taxpayers Will Pay for Area Schools Borrowing Millions" — for more on how much school districts in our area have borrowed, and how that will affect taxpayers.