Posted: Sep 29, 2010 6:21 AM by Bea Karnes, News First 5
The number of Colorado school districts in financial difficulty is rising.
State auditors told lawmakers on Tuesday that the number of districts receiving financial warnings from the state last year rose from 61 to 68.
Warnings to fix fiscal problems are issued based on several factors, including whether there are sufficient assets to cover bills.
Vody Herrmann, public finance assistant for the Colorado Department of Education, said declining home values, cost of new construction and districts dipping into reserve funds have hurt school districts. Herrmann says the economic recession is expected to hurt districts even more next year.
Under state law, the state can freeze tax revenues to cover school funding.