PANAMA – The Jamestown Post-Journal is reporting today that a paperwork error may end up costing the Panama Central School district nearly $5 million over the next 10 years.
According to a statement from the school, state education officials informed Panama last November that it was listed on a state aid website as being delinquent in filing required financial cost reports for two building projects. The projects were completed in 2002 and 2005, respectively.
The state Education Department has notified the district that under state law, the penalty imposed on the district will be $4.9 million.
Since December, district officials have been working with the state, through Senator Cathy Young’s office, to address this error and has obtained an agreement from the education department to spread the payment of the amount over a 10-year period. Also, the district will receive a $500,000 grant to assist with the first year’s payment.