Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Sequester Puts School Districts In Danger of Bankruptcy
Author: Joel R. Glucksman
Date: November 14, 2013
Key Contacts
Back
The federal sequester has created budget constraints for many cities and towns, and this has put many school districts that rely upon municipal funding to maintain operations in danger of bankruptcy. This is particularly true in rural districts that provide education to low-income children.
A recent article in The Huffington Post highlighted the plight of schools in Stilwell, Okla., which is currently unable to make repairs on a school roof that leaks heavily and raises the risk of causing further infrastructure damage to the property. Instead, teachers rely upon buckets to catch the rain, despite the safety risks that wet floors and mold may pose to students. Principal Margaret Carlile told the news source that Oklahoma has cut school spending by 22 percent since 2009, leaving the institution largely reliant upon federal resources, which have been drastically reduced due to the federal budget cuts.
This issue is common across several states, that include Colorado, Tennessee, Kansas, and North Dakota. Some districts lack the funding for books and other resources necessary to meet national Common Core Standards, and others have been forced to consolidate with other institutions, placing further strain on city resources. Tennessee’s Clay County Schools Director Jerry Strong noted that the problems have become so perilous, that the idea of seeking protection under the bankruptcy law is no longer such a far-fetched idea.
“Unfunded mandates, reduction in funding and added requirements has my system on the edge of bankruptcy,” he told the news source.
The St. Louis Post-Dispatch reports that the Riverview Gardens School District recently proposed roughly $3 million in cuts to help it offset the roughly $15 million costs associated with losing its accreditation and having to pay for students to enroll elsewhere. The cuts would come out of several areas, including school technology, facilities, and professional development for teachers.
“I don’t know where we’re at if we don’t get assistance for 2014- to 15,” Enos Moss, finance director for the district, told the Post-Dispatch. “We will be bankrupt.”
- Practices: Bankruptcy & Creditors' Rights
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Does Your Homeowners Insurance Provide Adequate Coverage?
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Author: Jesse M. Dimitro
Understanding the Importance of a Non-Contingent Offer
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Author: Jesse M. Dimitro
Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC
Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]
Author: Scarinci Hollenbeck, LLC
Novation Agreement Process: Step-by-Step Guide for Businesses
Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]
Author: Dan Brecher
What Is a Trade Secret? Key Elements and Legal Protections Explained
What is a trade secret and why you you protect them? Technology has made trade secret theft even easier and more prevalent. In fact, businesses lose billions of dollars every year due to trade secret theft committed by employees, competitors, and even foreign governments. But what is a trade secret? And how do you protect […]
Author: Ronald S. Bienstock
What Is Title Insurance? Safeguarding Against Title Defects
If you are considering the purchase of a property, you may wonder — what is title insurance, do I need it, and why do I need it? Even seasoned property owners may question if the added expense and extra paperwork is really necessary, especially considering that people and entities insured by title insurance make fewer […]
Author: Patrick T. Conlon
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Sequester Puts School Districts In Danger of Bankruptcy
Author: Joel R. Glucksman
The federal sequester has created budget constraints for many cities and towns, and this has put many school districts that rely upon municipal funding to maintain operations in danger of bankruptcy. This is particularly true in rural districts that provide education to low-income children.
A recent article in The Huffington Post highlighted the plight of schools in Stilwell, Okla., which is currently unable to make repairs on a school roof that leaks heavily and raises the risk of causing further infrastructure damage to the property. Instead, teachers rely upon buckets to catch the rain, despite the safety risks that wet floors and mold may pose to students. Principal Margaret Carlile told the news source that Oklahoma has cut school spending by 22 percent since 2009, leaving the institution largely reliant upon federal resources, which have been drastically reduced due to the federal budget cuts.
This issue is common across several states, that include Colorado, Tennessee, Kansas, and North Dakota. Some districts lack the funding for books and other resources necessary to meet national Common Core Standards, and others have been forced to consolidate with other institutions, placing further strain on city resources. Tennessee’s Clay County Schools Director Jerry Strong noted that the problems have become so perilous, that the idea of seeking protection under the bankruptcy law is no longer such a far-fetched idea.
“Unfunded mandates, reduction in funding and added requirements has my system on the edge of bankruptcy,” he told the news source.
The St. Louis Post-Dispatch reports that the Riverview Gardens School District recently proposed roughly $3 million in cuts to help it offset the roughly $15 million costs associated with losing its accreditation and having to pay for students to enroll elsewhere. The cuts would come out of several areas, including school technology, facilities, and professional development for teachers.
“I don’t know where we’re at if we don’t get assistance for 2014- to 15,” Enos Moss, finance director for the district, told the Post-Dispatch. “We will be bankrupt.”