From the Bloomington Herald-Times:
MCCSC is looking to apply for a state loan that will help the district recoup money lost due to an error by the Department of Local Government Finance.
Board members will vote on a resolution tonight to apply for a state general fund loan of $286,776, for the corporation’s capital projects fund.
According to Comptroller Tim Thrasher, the DLGF used an incorrect method to determine the 2012 maximum capital project funds rates.
The state has now used the corrected formula to determine what the maximum rate should have been and how much MCCSC lost as a result of using the incorrect formula, according to Thrasher.
“The error was discovered after tax rates had been certified for 2012 so it was not possible, or would have been very difficult, to correct the 2012 rate in time to have the change reflected on 2012 tax bills,” Thrasher said.
School corporations may now obtain a loan from the state’s general fund in the amount of the additional taxes each district should have received.
School districts must agree to increase the 2013 Debt Service Fund tax rate to repay the loan in 2013.
According to Superintendent Judy DeMuth, the loan is simply “a way we’re able to recoup money we lost due to the error.”
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http://www.heraldtimesonline.com/stories/2012/06/26/schoolnews.mccsc-planning-to-seek-loan-to-cover-error.sto
