Red Lion Area School District on brink of bankruptcy

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YORK COUNTY, Pa. – The ongoing state budget impasse may force a York County school district into bankruptcy by the end of the fiscal year.

District superintendent Dr. Scott A. Deisley, Ed.D. posed a letter on Friday on the district’s webpage stating that the district’s cash flow for the remainder of the school year is in dire straits.

Last week, in an effort to avoid default and/or closing schools, the School Board authorized the withholding of vendor payments including Cyber and Charter schools tuition payments. The school district will also delay all purchases.

Dr. Deisley says the district will focus on essential classroom needs, debt service and utilities, followed by payroll. All other expenses are on hold.

The Red Lion Area School District budget shortfall of about $9.7 million. The budget impasse for the fiscal year 2015 – 2016 has stretched into 8 months with no apparent end in sight.

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