Youngstown school board asks for loan forgiveness

Published:Tuesday, July 22, 2008

YOUNGSTOWN — The city school board wants the state to forgive all or part of the nearly $18 million the district still owes on the $25.4 million it borrowed to fight a budget deficit.

Four board members — Anthony Catale, Dominic Modarelli, Michael Murphy and Lock P. Beachum Sr. — sent a letter to Gov. Ted Strickland on Friday outlining Youngstown’s difficulties in dealing with what started out as a $15 million general fund deficit.

The district borrowed $15 million from the state through a solvency loan in fiscal 2007 and another $10,380,000 in fiscal 2008 to end those years in the black.

For the complete story, see Wednesday’s Vindicator and Vindy.com.