A Senate panel backed off of a recommendation on a proposed advance loan of state education aid to Claremont after local school officials told them the serious cash crunch won’t come until next spring.

During a two-hour public hearing Tuesday, James O’Shaughnessy, the Claremont School District’s legal counsel, said the proposed legislation isn’t a bailout, but would allow school officials to use education aid grants for the next two years ahead of time to help it close a $5.1 million deficit.

After making many budget cuts, a $4 million loan from the Claremont Savings Bank will tide the school district over until April 17 when the city must pay it back with 2% interest.

“From April through September 1, they are going to have very difficult time with cash flow,” O’Shaughnessy told the Sen

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