A state Department of Education official says a merger of the financially troubled Monticello school district with the surrounding county could result in the state canceling a more than $1 million debt.
Hiren Desai, associate commissioner of education, told the Kentucky Board of Education on Wednesday that he offered debt forgiveness as an incentive to get the two districts to merge.
The board in February rescued the small Monticello Independent School District in an unprecedented move that let the state lend it $1.1 million to keep its three schools open until the end of the school year. The state then assumed financial management of the district.
Desai said the district has proposed merging with the Wayne County School District, and a decision may be made at a meeting Monday.