Like the city of La Porte before it, New Prairie Schools is expecting to borrow millions of dollars again this year despite fixes to the county-wide tax situation.
On Monday, Kelley Kitchen, financial services director for the corporation, told the New Prairie School Board the district would probably have to borrow up to $4 million to meet cash flow, because the county's fix to the taxing situation may leave the corporation without a payment until 2014.
On April 10, new legislation authored by state Rep. Tom Dermody, R-La Porte, came into effect, allowing La Porte County to send out its first real property tax bill in years as a combined bill in the fall. Usually the county sends a bill earlier in the year. The measure will effectively stop provisional bills in the county, which have resulted in delayed bill payments. The delays have forced municipalities and schools to borrow money to make ends meet.
But Kitchen said this new measure will leave the corporation short again this year.
Superintendent Jim Dermody (Tom Dermody's brother) said he was not pleased with this development, explaining that this problem was the result of county issues, not the school corporation's.
He expressed hope that it will clear up after this year.
On April 15, La Porte Mayor Blair Milo said the city might have to borrow money too as a result of the new bill....
http://www.heraldargus.com/articles/2013/04/24/news/local/doc5175ee7c31953536059279.txt
