Schools

State Aid Shift Costs $20 Million

Rosemount-Apple Valley-Eagan public schools will need to borrow cash to make up for a delay in state aid payments.

The Rosemount-Apple Valley-Eagan school district will have to borrow money because a state aid shift will cost it about $20 million this year.

School leaders and board members met for a retreat at the district offices in Rosemount Monday night. They talked about district-wide goals and its financial future. Jeff Solomon, District 196 director of finance and operations, said the schools will need to borrow cash to make up for the $18-$20 million shortfall caused by the Legislature's decision last week to further delay state aid payments to schools.

"The state is a very scary funding partner," Superintendent Jane Berenz said Monday night.

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The new state budget gives school districts 60 percent of state aid one year, and then gives the other 40 percent the next year after final enrollment is calculated. Before this the ratio had been 70/30; historically it started as 90/10. While this helps the state balance its budget, it leaves school districts scrambling.

"It's like stealing money out of your kid's piggy bank," school board chairwoman Jackie Magnuson said.

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Between a state aid shift and property tax shift, the district no longer has a fund balance that covers such costs, Solomon said.

The school board on Monday night also discussed the possibility of including a levy referendum in November. The board has an Aug. 25 deadline to make a decision on whether to ask voters to pass a levy this fall.

Among other discussion topics, the board also looked at district-wide goals. They plan to get staff and community members involved in talking about budget decisions. This will include school meetings and focus groups, according to a document outlining district goals.


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