To get a sense of the domino effect of Corzine’s decision to delay State aid payments to school districts, take a gander at Trenton Public Schools, which will need to borrow $21.6 million to cover payroll and other expenses through the remainder of the school year. The number is so high because Trenton is a poor urban city (we can’t say “Abbott “ anymore), so the State foots the bill for over 80% of their budget. The State will also have to cover the interest on the bank loan, about $46,000. The majority of N.J. school districts are finding ways to cover the non-payment through their own bookkeeping maneuvers, although some will be forced to borrow money.
The Trenton Times reports that the district will not pay staff overtime until they get the money from the State, which is supposed to happen in July.No word on what will happen if the State still can’t come up with the cash.