Saline Area Schools will borrow $3 million to get the district through the summer until state funding begins in August.
The Board of Education voted 6-0 to approve the motion to authorize Assistant Superintendent Janice Warner to proceed with the loan.
In years past, the district has borrowed up to $3.5 million, Warner told the board. But year, the board borrowed just $2.5 million and it caused some angst.
“It got extremely tight. We had to get an advance on (Washtenaw Intermediate School District’s) Act 18 funding to get us through payroll,” Warner said, describing the situation last summer.
After reviewing the situation with the district law firm, the Warner determined that $3 million was the adequate amount to carry the district through summer.
The district will soon go out to bid for the loans, Warner said. The last two years, local banks won the bids and offered rates lower than those that can be obtained through the Michigan finance authority, Warner said.
The loan will be paid back in August.