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Schools to tap reserves to weather funding delays
Kindergarten through twelfth grade education was hit with a $1.77 billion deferral in payments and property tax recognition adjustment as a result of the state unallotments announced last week.
Because of the deferral, school districts will receive only 73 percent of their fiscal year 2010 entitlements during the fiscal year 2010, and will receive the remaining 27 percent in fiscal year 2011.
Superintendent Jim Lentz said the deferral would not have a great impact on the Pipestone Area School District. The district, he said, has set aside money to prepare for such an event and should be able to weather the storm.
“It was a recommendation from our auditor to build up a small cash reserve for something like this and the school board took his advice,” Lentz said.
Russel-Tyler-Ruthton Superintendent Bruce Houck said his district budgeted for a 20 percent deferment and should have enough money to get through the year. If, however, a similar scenario plays out next year, there could be trouble. For now, he said, the district will have to manage their bills carefully and make a few adjustments to get by.
Edgerton Schools Superintendent LeRoy Domagala said his district has about two months worth of operating expenses in reserve, which should be enough to get by. If, however, there are future cuts, the district could be in trouble.
“It’s going to be tough,” he said. “But as long as it’s delayed and not cut we can live with it.”
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