PANAMA - A paperwork error may end up costing the Panama Central School district nearly $5 million over the next 10 years.
Since December, district officials have been working with the state, through Sen. Cathy Young's office, to address this error, according to a press release prepared by the district.
According to the statement, Panama was informed last November that it was listed on a state aid website as being delinquent in filing required financial cost reports for two building projects that were completed in 2002 and 2005, respectively. The state Education Department has notified the district that, pursuant to the standards it applies to these circumstances, the penalty imposed on the district will be $4.9 million.
The district has obtained an agreement from the education department to spread the payment of the amount over a 10-year period and, as a result of last month's budget negotiations, will receive a $500,000 grant to assist with the first year's payment.