School payments delayed to Staples Motley

The Staples Motley School District is among those whose state aid payments will be delayed because of shortalls in the state budget.

Payments for Mar. 15, Mar. 30 and April 15 for an estimated total of $1,337,200 will be delayed until May 30, according to a press release from the Minnesota Department of Education.

The payment delay is allowed under state statute and is implemented under a specific formula. It will apply only to school districts with an unreserved operating fund balance over a certain level.

This payment delay was not totally unexpected given the state’s projected budget issues. At their Jan. 19 meeting the Staples Motley School Board gave administration permission to investigate aid anticipation borrowing for the remainder of this fiscal year.

School Business Manager Bob Hamann said they were “looking at the investments we have to see if we can get by in a pinch. We may have enough on hand to get by with normal operating costs.”

Hamann said the district doesn’t want to borrow and have to pay interest, but “We may not have any choice. We don’t want to run cash short.”

His office is investigating the rates to borrow and comparing to the potential investment rates. If they have to borrow, they will hope to be able to put the funds into short term investments where the interest can offset some of the costs.

Usually aid anticipation borrowing takes place in August. The Staples Motley School District hasn’t had to borrow for the last couple of years.

Hamann isn’t sure if their analysis will be complete for the board’s Feb. 16 meeting. They may bring bids to the March meeting, if the situation requires it.

The aid payment delay applies only to school districts, and does not apply to cooperatives, intermediate school districts or charter schools. In all, 231 of Minnesota’s 337 districts will be affected. School districts will receive their normally scheduled payments on April 30 and May 15.

In their press release the state department assured the districts that the amounts delayed in March and April will be paid in full on May 30. Federal aid payments will not be delayed.