An Indiana School Board Member is speaking out against recent comments about defeasment of the 2016 bond issue.
As we mentioned on Tuesday, The Indiana School Board voted to explore the option of defeasment concerning the bond issue that was to be used for the proposed Ben Franklin project that was ultimately shelved. Board President Doug Steve said to us that defeasment may benefit the district in the long run because paying off the loan would save the district money. Julia Trimarchi Cuccaro, who is the head of the Audit and Finance Committee, said that she feels that defeasement may actually be bad for the district. She said that she does not belive the defeasement would help in the long term, and would be expensive in the short-term. She also said the money could be used in better ways, such as making improvements to the Ben Franklin Elementary School. She also suggested putting the money in a Certificate of Deposit, so the money could gain interest over time.
As of right now, the defeasement issue will be explored only at this time. Formal approval on what will be done with the money from the 2016 bonds will be at a later date.
