JACKSON, MS (Mississippi News Now) -
School board members in the Capital City join a growing number of districts trying to rebound from a downed economy and fewer dollars from the state to operate.
Jackson Public School Board Trustees, in a meeting Wednesday, took measures they hope will help them climb out of the red. The board approved restructuring debt for the first time since 1995, generating $55 million.
The district faces more than $150 million in bond debt and other expenses and does not have a state mandated fund balance. Superintendent Dr. Cedrick Gray said it is a first step to moving to fiscal responsibility.
"We can be functionally sound as well as help to restore a credit rating so that we can move forward with any other future projects," said Dr. Gray.
Some board members expressed reservations although they supported the plan.
"If we do not make those hard decisions within the next six to nine months eventually the state will come in and make those decisions for us," said JPS Board Member Dr. George Schimmel.
"We will probably end up not seeing a savings but end up spending more money in terms of interest and so forth. At this point we along with many other districts and governmental units don't have many options at our disposal," voiced board member Timothy Collins.
The district's financial advisors said the restructuring is similar to re-financing a mortgage to take advantage of lower interest rates.
"If you're paying 7% and you can refinance it at 4%, it's a lower rate, results in lower debt services payments over the course of the life of the term of the debt," points out Porter Bingham with Malachi Group.
The measure passed in a 5-1 vote with Board President Monica Gilmore-Love abstaining.
"While I agree in concept with a financial restructuring plan, I didn't agree with the projected numbers and the time frame it would take to realize savings for the district," stated JPS Board Vice President Linda Rush.
Financial advisors said the district will save over $24 million over a three year period.
JPS isn't alone in its struggle to overcome debt problems. The Hinds County Public School System is also currently restructuring its debt.
Copyright 2012 MSNewsNow. All rights reserved.
Jackson Public School Board Trustees, in a meeting Wednesday, took measures they hope will help them climb out of the red.
"We can be functionally sound as well as help to restore a credit rating so that we can move forward with any other future projects," said Dr. Gray.
WLBT 3 - Fox 40
