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Kansas City School District Teetering on the Edge of Bankruptcy

Posted By admin || 1-Mar-2010

Bankruptcy-Settlement

Faced with a dire economic situation, the Kansas City School District is considering closing 30 schools.

In bankruptcy news, the Kansas City School District is said to be on the verge of bankruptcy unless major changes are made.  On Tuesday February 16th, the district held meetings letting parents know that the district is considering closing 30 schools within the district.  Hundreds of people showed up to hear the news, and the parents aren't taking the news lightly.

The school district showed the parents that the district is currently using less than half of the space that it has available for students.  That means the district is wasting a lot of money on too much capacity.  The district's idea is that with consolidating schools the district can save a lot of extra cash.

The details of the district's financial situation look pretty terrible.  Next year, the district is set to lose $8 million unless the district makes sweeping changes.  This also includes the district set to take in $40 million less in revenue next year.  The reduced income is attributed to less state funding and a major loss in property tax revenues.

It seems as if the parents have the right to be worked up, because the school closures could have a huge impact on their children's lives.  Crowded classrooms, having to travel further to school, and younger kids having to go to school with older kids, all could have a negative impact on their children's education.

Anyway, it is still up in the air as to what will happen.  An entity can't continue to operate if all it does is lose millions of dollars year after year.  Something major will have to happen, so you might want to stay tuned.

As funny as it sounds, bankruptcy might not be the worst option for the district.  Of course, all of the details of the district's financial situation would have to be known to make that call, but bankruptcy is a great tool for entities to turn their financial situations around while remaining operational.  Large entities like the Kansas City School District would keep on going while wiping out and restructuring debts.

This type of bankruptcy is not unlike personal bankruptcy, which gives individuals that chance to wipe out their debts.  If dreadful financial situations sound all too familiar, you should consider bankruptcy.  You'll be able to keep your belongings while wiping out and restricting debts.  From there, you'll be able to move on with your life.  If you would like to find out more, don't hesitate to contact a bankruptcy attorney.

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