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Thursday, May 04, 2006

Red Light

A client recently got a "Notice of Withholding Action," saying that due to some problems they had before hiring me, they have to pay back $100,000 or be subject to the Red Light Rule.

This is a bad time, because their applications for both 2005-2006 and 2006-2007 are currently in review. According to the Red Light Rule, all pending funding requests will be denied. They're looking at losing two years of funding unless they can come up with the money. And it's getting to the end of the fiscal year, when districts often don't have money lying around. So we'll have to work out a payment plan.

But here's today's laugh for me: if they Red Light Rule is invoked, I guess they become a "Red Light District." Nyuk, nyuk, nyuk.

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