Continuing uncertainty over property tax bills in New Castle County is causing havoc with school district budgeting.
The district is still dealing with the fallout from a major budget shortfall caused by a string of accounting errors. And as the district charts its way out, it faces possible cash flow problems as property tax payments in the state’s largest county remain up in the air.
October is a big month for school districts, with property tax bills coming due and the district’s share of the money arriving. But with a reassessment-related lawsuit undecided, those bills haven’t been sent out yet.
“[In] October, projected receipts were $77.4 million, but the actual is going to be more like $13.2 [million]," said Chuck Longfellow, a consultant working with the Appoquinimink School District.
That could create a cash flow problem for Appo. Not only does it have to meet payroll and pay other operating expenses - which district staff say they’re keeping to the bare minimum - but a portion of charter school payments are also due.
“It's about $1.6 million this year," Longfellow warned. "We cannot do that because if we do, it threatens our ability to make our payroll.”
Board members discussed the possibility of taking a no-interest loan from the state to make ends meet.
But, even if property tax bills are sent out early next month, the future is still hazy.
“That means people will get their bills the first week in November. They're due November 30th. I suspect a lot of payments are going to be late simply because of logistics. Thanksgiving week is in there," said Board President Richard Forsten.
The district’s finance director told board members that her office is taking a bare-bones approach to all operational spending.
