Spencer, MA- September 15th, 2020 — Spencer-East Brookfield Regional School District Superintendent Paul Haughey said that the district has paid off its deficit loan.
One June 14, 2013, the Governor approved Chapter 24 of the Act of 2013, which authorized the Spencer-East Brookfield Regional School District to issue up to $3 million in deficit obligations, to be amortized over a period of up to 10 years, for funding the district’s fiscal year 2013 budget deficit.
On July 11, 2013, the District Committee secured approval from the Commissioner of Education to issue $2million of said authorized debt, and within 6 months paid back $837,000. Pursuant to a plan of fiscal oversight imposed by Chapter 24, which also required the District annually to set aside funds to a specifically designated Fiscal Stabilization Fund, the District has been financing and paying down the remaining $1,163,000 balance of the 2013 budget-financing obligation.
“It is with great pleasure and Prouty Pride that I inform you and the District Committee that on September 1, 2020, payment of $170,000 has retired the District’s deficit financing obligation pursuant to Chapter 24 of the Acts of 2013 – nearly 3 years early!” stated District Treasurer William Schlosstein in a recent correspondence to Superintendent of Schools, Paul Haughey. Further, the Fiscal Stabilization Reserve Fund now holds nearly $390,000.
“Congratulations to the District for its perseverance and rigorous discipline in seeing through a difficult chapter in its history,” stated Schlosstein in the correspondence. It is a credit to the entire financial team here within the Spencer-East Brookfield Regional School District as well as the School Committee for remaining constant in their purpose to repay this debt in such an aggressive manner.
“Combined with the completion of single and end-of year audits of the past four years by Melanson-Heath, Spencer-East Brookfield RSD is in solid financial standing to move forward focused upon teaching and learning with purpose while carving out a ‘college, career and life readiness’ niche in Southern Worcester County for each and every single student who attends our schools,” said Haughey.