Budget deal just in time for MSJC
August 22nd, 2007http://www.nctimes.com/articles/2007/08/22/news/californian/4_02_148_21_07.txt
“The community college was forced to take out a $2 million short-term loan to pay employees and vendors late last month, and was looking at having to borrow another $1.7 million this Friday if the stalemate had continued the school’s dean of business services, Catalina Cruz, said Tuesday.”
Blog:
I am shocked to read this article. As an elected official I have no knowledge of the reported district financial condition. As of 5:00 PM today, the district has not responded to my earlier inquiry e-mail and telephone voice message relative to this matter.
FYI
A draw on district TRANS funds, is normal action to correct a short term cash flow situation. However, if the reported “borrowing” is not TRANS funds, but an actual emergency loan, executed by the district, without previous board action, then this is a serious governance issue impeding a board members fiduciary obligation as an elected official.
Question:
Do board policies, 2430, 6340, 6100, justify and provide authority to the district to borrow $2 million dollars without board action? If so, what can’t they do?
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