Schools get another IOU from state
State legislators might have put themselves in a better position to be re-elected this fall, but many Minnesota school districts will be looking for money after the state voted to delay $2 billion in school payments.
One of the districts affected by the delay could be Wadena-Deer Creek District 2155.
District 2155 borrowed $2 million in aid anticipation bonds last August when the state decided on a 27 percent shift, or delay, in payments to school districts. The special legislative session that ended Monday night in St. Paul once again shifted payments to a future date. The coming school year will see a 30 percent shift.
District 2155 will receive the remaining 27 percent over the next physical year.
"They have not for a number of years dealt with the state budget problems and they keep delaying by shifting things and that's not addressing the problem," District 2155 business manager Jerry Anderson said.
According to Anderson, District 2155 is currently operating on a $11.5 million budget.
"Our current borrowing matures this coming September," Anderson said. "If we are to borrow again, which we will be, the amount is undetermined at this time, we will be doing the aid anticipation borrowing in August again. It will in the same range. I don't know if it will be more or less but it isn't going to be a lot different than the current amount."
The amount the district will borrow will be used to pay off the maturing one when it comes due in September.
"It's something we will not be able to get out of until the state pays us back all the money that is due us in the current physical year, and everyone that has to borrow is in that situation," Anderson said.