August 14, 2014 at 8:20 am

Flint School District OKs borrowing $17M

Flint — The Flint board of education has approved borrowing $17 million against its state aid because of the district’s cash shortage.

The Flint Journal reports the board authorized the plan Wednesday in a special meeting. The district says it will work with state agencies for approval.

Flint schools are waiting for the state Department of Education to sign off on the district’s plan to erase a $20.4 million deficit. The district wouldn’t be able to take out the loan until the state approves the plan.

District officials say schools will run out of cash by October without the loan.

The district has closed 23 schools in the last 10 years. Sixteen of those were elementary schools. It projects it will have 450 fewer students when classes begin in September.