$3.6 million: the cost of the state budget to Eastern Carver County Schools

Over the last few months, we’ve heard a lot about the state budget battle and the various provisions that were used the finally close the gap and end the government shutdown.  As you probably know, changes in K-12 education funding again were a key component in the solution.  There were a lot of moving pieces in the final agreement, so let’s break down what it means at the local level, for the Eastern Carver County School District.

In each of the next two years, the school district will receive a $50 increase in the basic per pupil rate.  When added to the increases already part of the formula, per-pupil funding for FY 2012 and 2013 that was supposed to be $5,927 and $5,930 will now be $5,985 and $6,046, respectively.  Additionally, the district will receive one-time compensatory funds totaling just over a million dollars and $519,000 in literacy funding in FY 2013.

These funding increases, however, are offset by the much-derided funding shift.  Under the shift, the payment to a school for a particular fiscal year is split over two years. As part of the budget agreement, the formula was changed from a 70/30 split to a 60/40 split.  The net impact of the shift is a $5.3 million reduction in funding for the current school year.

The increased per-pupil funding and compensatory dollars will increase funding in the 2012-13 school year by $1.7 million over previous law.  However, this uptick in funding will still leave the district short $3.6 million over the next two school years.

And the sharp decrease in 2011-12 will likely necessitate borrowing to ensure the district has adequate cash flow.  The district is currently making plans to be able to borrow up to $3 million, at a cost of $22,000.  

That’s yet more money that won’t be able to be used in classrooms, educating our children.  It’s time to stop writing IOUs to our public schools and to get our budget set on a truly sustainable course.

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Trackbacks/Pingbacks

  1. Ernie Leidiger uncorks some whoppers at the Waconia candidate forum | Brick City Blog - October 24, 2012

    […] voted for).  The impact in the Eastern Carver County School District alone for this biennium was a reduction in state funding of $3.6 million.  Leidiger’s statement is only correct if you ignore the impact of the shift.  As local […]

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