Claremont School Board Authorizes Bank Loan

The Claremont School Board voted last night to authorize a $4 million bank loan to help with short-term cash flow problems.

Officials said the loan, called a Reimbursement Anticipation Note,  is similar to a payday loan, advancing funds from a state education grant.

The loan does not reduce the district’s deficit. It is intended to cover daily expenses, including payroll and health insurance.

School leaders also discussed long-term recovery plans, such as reducing next year’s operating budget to lower the overall deficit.

The district is facing a budget shortfall that could reach $5 million.