Budget Brings Relief to Brown County Schools
Principal and Interest Payments on Loan to be Waived
STATEHOUSE - Brown County schools will see relief under a provision of the recently passed Indiana state budget. A provision of the budget relieves the Brown County School Corp. from interest and principal payments due during the state fiscal years beginning July 1, 2009, and July 1, 2010, on the loan to the corporation from the state Rainy Day Fund and authorizes the repayment term of the loan to be extended as necessary to take into account the waiver.
The loan was made as a result of efforts in 2008 by the Brown County legislative delegation in response to the extraordinary financial circumstances in which the corporation found itself as a result of delayed property tax collections.
The relief from interest and principal payments will help the school corporation manage its cash flow in 2009, 2010 and 2011.
"I have been in close contact with Superintendent Shaffer, Assistant Superintendent Hammack and board members as they have been working through the financial issues," said state Rep. Eric Koch. "I am pleased that we were able to help Brown County schools during this difficult period."
Rep. Koch serves House District 65, which includes most of Brown County, and is assistant Republican caucus chairman.