Schools facing cash flow problems soon

Due to the budget impasse at the state level, schools are not able to receive funds for services that have been provided to children including school meals, Title I programs and more. The impact will be felt when the dollars can’t be used to meet payroll, creating cash problems for districts.

Grand Ledge Public Schools is reimbursed at least $100,000 each month, paying for children’s free and reduced breakfast and lunch programs as well as Reading Specialists. Currently, the district cannot receive the $100,000 payment because a budget has not been passed by the legislature. Michigan’s school children shouldn’t be victimized by politics. The youngsters that represent Michigan’s next workforce shouldn’t be a pawn in the high-stakes games at the state level.

In addition, in order for districts to receive their school aid payment on October 20, it is necessary to have either a continuation budget or adopted budget in place by October 10. (This is the amount of time it takes to process a school aid payment.) If Grand Ledge Public Schools does not receive its school aid payment on October 20, the district will run out of cash. The district is currently looking at options in the event that a school aid payment is not received.

The bottom line is that the school funding structure has failed. The legislature’s approach to short-term fixes by radically cutting student funding is unacceptable. Without restructuring the educational funding system, schools will be facing even steeper cuts next year.