MANCHESTER, NH – The Manchester Board of Mayor and Aldermen (BMA) has approved the remission of $ 2.8 million on a loan to the Manchester School District (MSD) for the purchase of textbooks.

The loan was made 10 years ago from the city’s one-time spending fund and was initially valued at $ 3.2 million. MSD made a repayment of $ 400,000 on the loan and was then authorized to withhold further repayments until further notice.

Opponents among board members to the loan cancellation said the $ 2.8 million could be used to help consolidate other parts of the city’s budget. They also estimated that MSD’s financial situation would improve after the pandemic ended.

Several pardon opponents, such as Barbara Shaw (Ward 9) have sought at least the expected payment of $ 400,000 in 2022 plus deferred interest, then said they would consider forgiving the rest.

Michael Porter (Ward 8) also noted that MSD also charges municipal services when they do business on school property.

Advocates of forgiveness noted that no one seemed to be able to find the initial terms of the loan, and the one-time expense fund was rarely used and was intended for occasional capital expenditures such as the purchase of textbooks.

MSD Superintendent Dr John Goldhardt also added that the district has not had a budget line for textbooks in recent years and that if the loan is not canceled, money allocated to other programs such as that professional development should be transferred to pay off the loan.

Supporters also felt the concept of the loan was crazy, with Anthony Sapienza (Ward 5) referring to it as transferring money from his left pocket to his right pocket.

“Really, asking the school system for $ 2.8 million to help the city is nonsense,” Sapienza said. “We should have bought textbooks to begin with, it’s reprehensible. Forgiving this debt will not help the bottom line of taxpayers.

The motion to cancel the loan was carried 8-5. Jim Roy (Ward 4), Ross Terrio (Ward 7), Shaw, Keith Hirschmann (Ward 12) and Joseph Levasseur (At-Large) voted in the opposition.