South Panola schools face shortfall

By The Associated Press

BATESVILLE — The South Panola school system is considering its budget options as it waits to hear whether it will receive $1.8 million in past due tax funds from the bankrupt LS Power generating facility.

The Panolian reports that a new owner of the facility is not expected to emerge before a July 9 hearing in New York.

The school deadline for budgets is Aug. 15.

Schools Superintendent Keith Shaffer says if the tax money doesn’t come in, the district may have to borrow in the short term to cover a budget shortfall.

Local governments are owed about $4.5 million in past due taxes, of which $1.8 million is for the school, from LS Power Company, which filed Chapter 11 reorganization bankruptcy earlier this year.