There was an interesting piece on Minnesota Public Radio regarding the "shift" or delayed payments that schools are experiencing. The legislature put this shift into effect to help balance the state's budget. It is a $1.77B deal for the state.
Some think the state may not repay the delayed payments next year. Others say the best case scenario is that the shift will continue into the future. The delayed payment for Delano School District is approximately $3.8M. The school district will be able to cash flow this for this year. If we didn't have reserve funds we would need to incur borrowing costs. We will lose some interest income as a result of the shift.
The school board is planning on holding a public forum on the state of the school district's finances in November with the date to be determined at the October 26 meeting. We want to keep school patrons up to date on school funding issues as there are challenging times ahead.
Stay tuned to this blog for information as it develops.
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