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Claysburg-Kimmel School Board approves contingency loan

District seeking to ensure it can pay bills in wake of state budget impasse

CLAYSBURG — Due to the ongoing state budget impasse, the Claysburg-Kimmel School Board unanimously approved taking out a line of credit from First Commonwealth Bank.

The issue came up at Monday night’s meeting where school officials discussed the long wait for a state budget.

Like some other districts, Claysburg-Kimmel is seeking a line of credit to make sure the district can “meet our bills beyond March of 2026,” Superintendent Brian Helsel said.

With opening a line of credit, he said that the district will have to pay a $500 fee. If they do not access the line of credit — up to $8.2 million — they are not required to pay any additional fees.

As of now, they are taking money out of their general fund balance, which is near $5 million.

“We’re basically creating a worst case scenario,” he said.

Before voting on the motion, board Vice President Jeremy Knott said “I can’t believe that we’re in the position” to take out a loan.

“We’re wasting money because they can’t do their job as representatives that are at the state level,” he said.

“It’s unfortunate for every taxpayer,” board president Rich Gergely added.

The school board also approved a resolution for the Pennsylvania General Assembly to end the state budget impasse.

Business manager Dena Burket said the Pennsylvania School Boards Association has issued a resolution to all of the districts in the state to end the state budget impasse.

Claysburg-Kimmel voted to approve the resolution, she said, and the association will upload all of the resolutions together.

“Hopefully they get all of the school districts and the state on board to do that,” she said.

In other business, the board approved to change school board voting session dates to every second Wednesday in the month, the third Wednesday acting as an additional work session if needed.

The new schedule is slated to begin in January.

All board members except Heidi Kennedy and Joseph Musselman were present at the meeting.

Mirror Staff Writer Colette Costlow is at 814-946-7414.

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