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School Districts Taking Loans With Government Shutdown Looming

By Mary Ellen Murphy Sep 13, 2025 | 10:15 AM

(Lansing, MI) – Some school districts in Michigan are taking out loans to keep their doors open if state government shuts down October 1st. Laingsburg Community Schools outside of Lansing is one of them, and superintendent Matt Shastal says their board of education approved taking a nearly two-million-dollar loan in June. He says they need the money to keep the lights on and the district operating if lawmakers don’t get a budget for Fiscal Year 2026 passed by September 30th.

Perry Public Schools have taken a two-point-two-million-dollar loan for the same reason.

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