Wednesday, June 8, 2016

Pennywise and pound foolish

Last night, the Worcester City Council, on a 7-4 vote, chose to cut the FY17 budget by $3 million; they did so by cutting the North High Stabilization fund, which is paying off the debt on North High. The argument made was that the city had made plans to pay off the debt early through use of this fund, and that wasn't really necessary.

Two things of note:
  • in order for other projects to go forward with the Mass School Building Authority, we must be able to demonstrate that we can borrow (and pay off) the debt we as a city accrue to do so.
  • "the city is expecting $6 million less in reimbursements from the Massachusetts School Building Authority" next year, and thus the amount the city has to put towards paying off such debt is already less than previously.
And a question: how much was the city projected to save in interest by paying off the debt early? 

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