Commission: Youngstown district should borrow from itself

YOUNGSTOWN — The fiscal oversight commission controlling city school district finances wants the district to borrow more money from itself rather than rely on state assistance to balance this year’s budget.

The state Financial Planning and Supervision Commission gave its approval Thursday to a plan to borrow up to $3,688,000 from the state’s school solvency loan fund, but Roger Nehls, commission chairman, said it would be to the district’s advantage not to borrow any.

Youngstown, which has been in state-declared fiscal emergency since November 2006, has borrowed $25.4 million from the state over the past two years and has repaid all but $5.2 million of that debt so far, with that last portion to be repaid in fiscal 2009-10.

Borrowing another $3,688,000 from the state would push the payback out another year, while not borrowing any money from the state could speed up the district’s emergence from fiscal emergency, Nehls said.

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