$5.2 Billion Hole

Today's StarTribune reported on yesterday's announcement regarding the economic forecast that was released. "Long-range, Pawlenty said, he will propose a reshaping of health care, K-12 education spending and the tax system itself, which he called outdated...Even the K-12 budget, considered sacrosanct most years, will be rebuilt from zero. [House leader] Kelliher appeared to back up that proposal, saying that legislators will use zero-based budgeting to winnow spending."

Under zero based budgeting every budget function is comprehensively reviewed and every item justified in complete detail. This process could lead to major education reforms driven by the state's financial challenges.

At Delano Schools we anticipate a deficit budget for the next school year (FY2010). However we do have some fund balance we can utilize to stave off wholesale reductions for a year or so, depending on how K-12 funding is impacted by the state. One reason we will be in a deficit budget is that the $425 voter approved operating levy, along with other funding sources, isn't keeping up with inflation. The state average operating levy after the November 2008 elections, is $919 per student and will go to $999 per student next year (because of the inflationary factors built in to some of the levies). Our operating levy will expire in 2011. It will need to be renewed and increased either in November of 2010 or 2011.