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WDAY: Your News Leader

Published January 26, 2010, 09:24 AM

Minnesota to likely delay school aid payments

Moorhead, Minn. (WDAY TV) - As school districts in Minnesota continue to wrestle with budget issues and cutbacks, the state has decided to level another low-blow on 231 school districts. School aid payments are likely to be delayed later this winter.

By: Kevin Wallevand, WDAY

The memo from the state of Minnesota comes from its Budget Department. Because of a cash flow problem, the state says it will delay state aid payments to schools.

The catch is that those school districts that have been careful to watch budgets and maintain a hefty budget reserve will be the ones most penalized. This is not a cut, but a delay in spring payments.

One state lawmaker says it is not only robbing school districts, but slapping them in the face for being fiscally responsible. In Moorhead, it could mean a delay of 1.5 million dollars.

“It is a troubling trend that I think will only get worse over the next fiscal year and next biennium.”

The payment delay amounts to 423-million dollars. The impact to schools in our region really varies; A delay of $2.4 million dollars to Detroit Lakes to no impact in Fergus Falls. Schools can appeal the delay to the state.

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