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Springfield Mayor: State Forgives $11M Loan

Jan 28, 2010 | Reprints | Unlock Link | Print

Springfield Mayor Domenic Sarno said Massachusetts officials have agreed to forgive $11 million the city was supposed to repay the state treasury in exchange for an immediate repayment of $23 million.

The money was part of a $52 million, interest-free loan the state offered to Springfield in 2004 to help it deal with massive deficits. The city has already paid back $5.2 million.

Sarno said on Wednesday that under the tentative deal to restructure loan repayments, the $11 million being forgiven will be used to pay scholarships for Springfield students.

Officials are working to finalize details under which the city will repay the remaining $13 million.

The city also announced city Treasurer and Collector Ehsanul Bhuiya has resigned after a review showed that he was not bonded as required by state law. (AP)

Executive Briefing