Easing the burden of deferrals
Districts would get small reimbursements
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A bill working its way through the state Senate would require the state to share the financial burden it causes the next time it delays money due K-12 districts. Only a portion of the short-term interest charges that many districts face when forced to take out short-term loans would be reimbursed. But SB 1491 at least would recognize that billions of dollars in late payments can create an expensive cash crisis for districts, many of them in low-income areas.
Within the past decade the state has used late payments, called deferrals, to help balance the budget. At this point, $10.4 billion – about 30 percent of state money owed to K-12 and