Halifax Schools have repayment plan for state debt

HALIFAX — A plan to repay the state $852,256.57 was presented to the Halifax County School Board Monday night by District Finance Officer Andrew Callihan.

He discussed the plan which was arranged during meetings with the N.C. Department of  Public Instruction.  The money is owed the state because of apparent failures by the previous finance officer to properly allocate funds and generate reports. The repayment plan puts the district on a track for financial stability, Callihan said.

The plan calls for monthly payments of $18,967, for a period of five years, at which time the $852,256.57 owed the state will be paid off with interest.

The board voted to approve the plan, with only Board Member Donna Hunter voting against it. The agreement must still be approved by the N.C. State Board of Education.

A key issue that will have a positive impact on the repayment plan was an assignment of claim that provides a $200,000 payment to the district by the Travelers Insurance Company. The claim against the district’s bond assigns no blame to the former financial officer.

Terms of the settlement were discussed in closed session but the board had to vote on the matter in open session. Only board members Hunter and Carolyn Hawkins voted against the settlement. Once approved by the insurance company, it will be applied to the $852,256.57, the district owes the DPI.

According to Callihan, the board agreed in closed session, not to pursue any further bond claims against current or previous board members or superintendents for their part in the financial crisis that began while Dr. Willie Gilcrist was district superintendent and continued through Carolyn Johnson's term as interim superintendent.