California Districts Borrowing More As State Payments Arrive Late

The Riverside (CA) Press Enterprise (5/30, Straehley) reports, "Inland school and community college districts are borrowing more and paying more interest and fees because their state payments are arriving late, officials said." The piece notes that such deferrals are increasing even as districts' reserves shrink under state budget cuts, and describes districts' extra costs from interest and transaction fees. "Instead of the state borrowing to cover its own cash-flow shortages, it has forced about 1,000 school and community college districts to pay the interest and other costs to borrow, said Vince Christakos, vice president of the California Association of School Business Officials and chief business official for Hemet Unified School District."