Colorado School District Gets Bailout
DENVER (AP) — The latest on a Colorado school district seeking help after coal giant Peabody fails to pay taxes:
1:45 p.m.
Colorado's state board of education has emptied its emergency fund to help a 300-student district caught up in a giant coal company's financial woes.
The board voted 7-0 Thursday to put all its $1 million in reserves at the disposal of the South Routt district, which learned last month that Peabody Energy failed to make a property tax payment. Peabody filed for bankruptcy protection in April.
A department of education official said shortly before the board voted that the plight of the northwestern Colorado district is the kind of situation for which reserves are designed. The department will now ask the state legislature to replenish the fund. South Routt will be expected to repay the money if Peabody pays its taxes, but that could take years.
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A 300-student Colorado school district is turning to the state after being caught up in a giant coal company's financial woes.
South Routt County schools officials are to meet with the state education board Thursday to request funds from contingency reserves after Peabody Energy failed to make a property tax payment. Peabody filed for bankruptcy protection in April.
The district near Steamboat Springs says the nation's largest coal producer provides 40 percent of the revenue raised locally to help keep its one elementary, one middle and one high school running. The district puts its shortfall due to uncollectable taxes at more than $1 million in total for this fiscal year and next.
Peabody says Routt's will be among claims addressed in its Chapter 11 plan.
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