State aid shift means more borrowing for school district

School planning to issue aid anticipation certificates of $17.5 million

Forest Lake School District 831 is making plans to borrow money to cover cash flow shortages due to the state of Minnesota’s delay of state aid payments to school districts.

The aid shifts are a result of the legislative budget-balancing process.

Larry Martini, director of business services, told the school board on Thursday, May 31 that the district will need to borrow $17.5 million this summer to cover cash flow purposes. That compares to $15 million that was borrowed during 2011-2012 to cover cash flow.

The existing loan will be repaid, Martini said.

As part of the plan, the school district will participate in the Springsted Aid Anticipation Pool Series 2012. Determination of the specific interest rate for the borrowing will be known in August.

The formal bond resolution will be up for school board approval on Thursday, June 28 which will serve as the board’s July meeting.

  • Twyla Ring

    North Branch School District is bleeding also. It’s been one cut after another for years…even down to a four-day school week.
    What else can be done until the Minnesota Legislature gets its hat on straight and repays their “loan”? Cut the lunch program? Get ready for lots of peanut butter sandwiches, kids. Cut transportation or severly limit routes? Get ready to haul your kids to school and pick ’em up again, parents!
    Our ancestors, working 40-acre farms and milking 10 cows, managed to support education… even took teachers into their homes. When did Minnesotans decide that education wasn’t worth sacrifice?