Utica City School District may not be able to meet payroll without tax money

By WKTV News

UTICA, N.Y. (WKTV) - The City of Utica collects school taxes for the school district and disburses payments to the district at different times throughout the year. Now is one of those times, but the problem is, the city spent the school taxes they collected on the school district's behalf.

School officials have been in touch with the mayor and city officials and were hoping to get a $5 million payment by the end of February-next week. They say they can make their payroll through February, but that they'd have to look at their cash flow and re-evaluate how to make the March payroll in the absence of the $5 million the city owes them from the school taxes they collected.

It appears the school district will get their wish; the city's common council has agreed to reconvene and borrow an additional $5 million (in addition to the $5 million they agreed to borrow on Friday in order to make their own payroll) so that the school district will get their $5 million. But even $5 million
can't buy peace of mind.

"I believe what's troubling now is the fact that they don't have any money and that we are going to need this money in the near future and they're saying that they don't have it to meet their obligation to us," says school district business official Maureen Albanese. "In that respect, it is troubling. Very troubling."

What's On