A $15 million loan from the state helped the city school district balance its budget this year, but the debt remains and will continue to grow, according to a financial five-year forecast.
The interest-free state loan must be repaid over the next two years, which means the budget deficit actually hasn't been paid off, only delayed.
The five-year forecast, prepared by district Treasurer Carolyn Funk, begins with this fiscal year and shows the cumulative effect of the deficit over that period, projecting that the red ink could grow to a whopping $48.3 million by June 30, 2011, unless steps are taken now to prevent that from happening.
