Loan-notification bill for schools OK'd

Tuesday, February 04, 2003

A bill meant to prevent financial catastrophes such as the one crippling St. Vrain Valley School District passed the House on Monday morning.

HB 1032, sponsored by Rep. Jack Pommer, D-Boulder, requires district officials to notify their school boards when they apply for short-term, interest-free loans from the state.

At St. Vrain, administrators used the loans to keep their financially askew district in the black, while elected school board members stayed in the dark. Board members only became aware of the problem once they were were $13 million in debt. The bill now goes to the Senate.