Debt forgiveness is still likely coming to Benton Harbor Area Schools, just not until the fall. State Representative Joey Andrews had sought to get the school district’s debt forgiven in the new state budget but tells us they couldn’t make it happen with the spending plan approved this week. It’s because of an ongoing lawsuit involving the city of Highland Park.
“I had conversations with the Speaker and a couple of people on the governor’s team about it and my impression is it’s a matter of when, not if,” Andrews said. “The timing, because of the Highland Park bankruptcy issue, it sends an odd signal if you’re forgiving some debt and not others in the middle of a lawsuit. So, it’s just taking a taking a pause in the summer, and then hopefully we’re going to be able to move forward in early September.”
The district’s debt stands at more than $12 million. Andrews says it looks like six school districts statewide could be in line for debt forgiveness when that fall supplemental budget bill comes.
