Deal to shift $700M from K-12 education
Published 10:56 am Friday, July 15, 2011
Though the state government will soon be back to business, things aren’t rosy for Minnesota schools.
An estimated $700 million in short-term delayed school payments is part of the soon-to-be-passed budget bill. A similar state aid shift happened in 2010, and while it didn’t adversely affect local schools, many are hurting for dollars.
There’s no word on how the $700 million will be divided, but school officials are wary of state aid payments shifts.
The 2010 shift meant schools would receive 70 percent of their funding for that year and the remainder would be paid off in subsequent years. The latest proposal would decrease payments to 60 percent. While districts still get the money, the shifts will present cash flow problems.
Schools rely on per pupil funding, which makes up a majority of a school district’s budget. Per pupil funding has increased twice in the past eight years and has remained frozen for the past three. Inflation costs continuously affect school districts, however, and many find themselves in tough situations.
Austin Public School officials didn’t think they’d have to borrow, but the money shifts could mean using a short-term credit line Austin’s school board approved earlier this year.