Metro schools to borrow $382M in lieu of delayed state fundsby Tom Weber, Minnesota Public Radio
St. Paul, Minn. — More than two dozen metro-area school districts expect they'll borrow nearly $382 million this year to meet cash flow.
That's according to a new survey from the Association of Metropolitan School Districts.
The group's Executive Director Scott Croonquist said the borrowing will cost those districts $3 million in financing costs.
Edina, for example, expects to spend $300,000 dollars to finance $16 million in borrowing.
"That's five or six classroom teachers that could otherwise be hired with that money," Croonquist said. "It does have an impact on school districts. We are thankful interest rates are low and it's not having a greater impact, but nonetheless it does have a negative impact."
Croonquist said the borrowing is caused by a longer delay in school payments to help balance the state's budget. That budget also boosted overall school funding, which Croonquist said did offset borrowing costs.
But he said districts still face other shortfalls from the state, most notably in special education funding.