CORBETT, Ore. — Corbett School Board members voted unanimously Tuesday to accept a two million dollar emergency aid loan from the Multnomah Education Service District (MESD). The decision was based on Corbett School District's three million dollar budget shortfall, which district officials discovered last summer.
"This loan will make it to where we are solvent," said Corbett School District superintendent, Dr. Derek Fialkiewicz. "We compromised so that we can move forward."
Fialkiewicz said the district learned about their three million dollar shortfall in July, after their new chief financial officer uncovered three years worth of "accounting errors." He said the district's former accountant made those errors — a person the district had contracted through MESD — but rather than sue the agency, Fialkiewicz said they agreed to the loan.
"We have agreed not to pursue any litigation," said Fialkiewicz. "It was the best decision for our students and for our district as a whole."
Under the terms of their agreement, Fialkiewicz said the district would have eight years to repay the loan. He said MESD also agreed to refund the district the cost of one year of accounting services at $196,000, to cover the loan's two percent interest rate.
Even with the loan, Fialkiewicz said eight district employees will still lose their jobs this winter, because the district's payroll was higher than its revenue. He said the cuts included one teacher and another teaching position reduced to half-time. For many parents in Corbett, it feels like a painful scar.
"I'm not even remotely sure how we would start to fix this, but I know that we definitely need to work as one to move forward," said Amy Mowlds. "Everybody is really worried, we're hoping some positive things come from this."
Other parents were amenable to the terms of the loan agreement, suggesting the Corbett School District should have been more diligent in their financial oversight.
"I think there's culpability with the Corbett School District and with the Multnomah Education Service District administration," said Corbett parent, Mindy Laframbois. "If it's interest-free, $2 million dollars is not a small amount to loan... I think this is a fair way to do it that actually solves the problem for now."