Berrien Springs public school officials clarify questions about 8-million-dollar deficit

BERRIEN COUNTY, Mich. -- The Berrien Springs school board is facing questions about an $8 million dollar payment. 

District leaders say it was all about reducing debt, and nothing to worry about. Berrien Springs public schools Chief Financial Officer Kari Bennett sat down with ABC57 today to clarify that this rumor is unsubstantiated.

While the district did pay 8 million dollars, that money was used to pay down debt through fund reserves. CFO Kari Bennett says it was all part of the final 2025/26 amendment.

The district used bond funding to pay off other debts, something superintendent Thomas Bruce says is a usual practice.

According to the district, it was somewhat dependent on interest rates.

"We have had reserves in our fund balance, and the district had been watching the interest rates, and determining at what point it would be fiscally responsible to pay off the debt, so up until this point, we were earning more on our reserves with the interest rates being high and once those dropped down, we made the decision to save money and spend down the fund balance and use it to pay off the debt," said Bennett.

This payment took place a few weeks ago, according to Bennett.