State budget impasses forces Mahanoy to seek short-term loan

MAHANOY CITY – With the state budget 115 days late and counting, school districts and community organizations are feeling a hefty strain. One local school district announced Thursday they have sought and secured a short-term loan to keep operations going.

The Mahanoy Area School District sought the loan to maintain cash flow, the district said in a release. It’ll cost local taxpayers between $7,000 and $10,000, and is “a burden that diverts valuable resources away from student programs and classroom support,” the district says.

“We are deeply disappointed that our students and staff are being impacted by legislative inaction,” said Dr. Joie L Green, Superintendent of Mahanoy Area School District. “Our priority remains providing a safe, high-quality learning environment, but the lack of funding forces us to make difficult financial decisions that no school should have to face.”

In addition to the cost of the loan, Mahanoy Area says the district has lost $13,000 in interest earnings that would have gone towards educational initiatives and operational needs.

The state budget was due June 30.

Around the county, community organizations are also feeling the strain, including partner agencies of the Schuylkill United Way in Pottsville.

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