CLAREMONT — State Sen. Ruth Ward, R-Stoddard, has introduced an amendment to a bill to help the Claremont School District address its financial problems.
The amendment to HB 292 would create a revolving loan fund and allow the school district to borrow money against future adequacy aid revenue from the state. The money would be paid back with interest and not require any new money from the state.
Ward, chairwoman of the education committee, whose Senate 8 District includes Claremont, said her goal is to help Claremont through its current cash flow crisis so district schools can remain open for the year.
“This amendment would provide Claremont with the financial flexibility it needs to do just that,” Ward said in a news release.
HB 292 originally contained language on SAU consolidation and it passed the House. But the SAU consolidation piece was later included in a separate bill to create a study commission on special education and HB 292 was retained in the Senate, state Rep. Hope Damon, D-Croydon, said in an email.
“Not needed for its original intent, it’s (HB 292) the vehicle to amend with the revolving loan language,” Damon said.
The bill will be presented at a Senate education committee hearing in Concord on Oct. 14 at 1 p.m. and then the committee will vote on whether to recommend it to the full Senate on Oct. 23. If it passes, it would be sent to the full House on Dec. 17.
Claremont faces a $5 million deficit and a severe shortage of cash for current operations. Interim Business Administrator Matt Angell presented a plan to cut the deficit to less than half by the end of the school year at Wednesday’s School Board meeting.
Angell also sounded the alarm, telling the board that cash is dangerously low at less than $200,000. For a district with a $39 million budget, Angell the cash balance should be between $3 million and $6 million.
To help alleviate the cash situation, he asked the board to support a resolution in favor of the revolving loan fund, which it did in a 6-0 vote Wednesday.
CORRECTION: New Hampshire state Sen. Ruth Ward, R-Stoddard, represents Senate District 8, which includes Claremont. A previous version of this story was incorrect in its description of the Senate district she represents.