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7/13/2010 12:00 AMMike Christopherson, Crookston Daily Times Crookston School Board member Frank Fee kind of summed up the feelings of everyone around the table at Monday's meeting, when the board heard details from Business Manager Laura Lyczewski on the necessity to borrow money for the second year in a row because the state has for a second consecutive year delayed some funding to school districts. "So it's going to cost us $33,000 for them to defer our money," he said. The $33,000 is in the form of interest paid on the aid anticipation certificates that the district has to purchase in order to pay the bills until all the state money the district has coming to it actually arrives. Last year, when the state delayed 27 percent of funding formula allocations to school districts as part of a budget-balancing package, the district borrowed the maximum it was allowed, $3.7 million. That has to be paid back by Sept. 24, Lyczewski said. This year, the state's plan is to hold back 30 percent of funding formula allocations, but despite more being delayed, she recommended Monday that the district not borrow the maximum this time around and instead purchase $4.1 million in aid anticipation certificates. That's $500,000 less than the district could borrow. "We didn't cash in all of our CDs (on the $3.7 million) and we'll probably have a surplus by September," Lyczewski explained. "I think at $4.1 million we'll have enough of a cushion, and we'll save some on interest costs." A special board meeting will be scheduled in two weeks to approve the resolution authorizing the purchase of the aid anticipation certificates so they can be put on the market for bids by mid-September. http://www.crookstontimes.com/news/education/x644699173/Another-state-funding-delay-means-more-borrowing-for-school-district | |||||||||||||||||||||
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