Board OKs $10 million emergency loan for Pontiac Schools

PONTIAC (AP) - A second $10 million emergency loan has been approved for Pontiac's public schools. The Detroit News reports from a Treasury department memo that about $2.4 million of the loan approved Wednesday will allow the 4,300-student district to pay employees. The rest will be used to pay "critical vendors." The Local Emergency Financial Assistance Loan Board also approved a $10 million loan in May 2014 for the district. The $20 million is the most the district can borrow in emergency loans. Pontiac Schools are under state oversight. District Superintendent Kelley Williams says Pontiac Schools' operating deficit is down to about $36 million. It was more than $50 million in 2013. Benton Harbor Area Schools also was approved Wednesday for a $1.4 million loan. Published: Fri, Jul 24, 2015