Rochester readers have been following developments in the Eastman Kodak bankruptcy case that is currently being reviewed in federal court. Another tale of financial woes came to light recently in an upstate NY school district.

According to a recent report in a local newspaper, the Canisteo-Greenwood School District faces the financial implications of revenue shortfalls this year. It is grappling with possible financial insolvency, projecting a revenue shortfall of $884,000. This lack of funds could ultimately force the school district in filing for bankruptcy.

When faced with a potential liquidation scenario that confronts a public entity such as a school district in dire economic times, the public does not want to hear speculation about bankruptcy.

The school district's financial woes come as other cuts have been considered to save money such as not replacing teachers at the end of the year. Even closing a middle school would save less than $400,000 next year.

The trend for school districts to get themselves out of such dismal financial circumstances, such as this district's reductions in state education funding, is not so positive. A school district does not borrow money, but it can project earnings on its investments.

The president of the Canisteo-Greenwood board also noted in the same news report that "the [NY] state made no moves to save a school district that declared bankruptcy last year."

Declaring any form of personal bankruptcy, such as Chapter 7 bankruptcy, is a matter that requires careful review, which is best performed by a licensed law practitioner. A consumer must choose which way to go, such as liquidating all debts or restructuring debt in a settlement with all creditors over a repayment period.

Source: EveningTribune.com, "Canisteo-Greenwood wrestles with expected revenue shortfall," Al Bruce, Feb. 15, 2012