Keep state funds flowing to public schools

by Joe Nathan
Thisweek Newspapers

Regardless of the politics, state funds should keep going to schools.  That’s my conclusion after interviewing about 20 superintendents and principals, Sen. Gen Olson, chair of the Minnesota Senate Education Committee (and a Republican), and Charlene Briner, a spokesperson for the Minnesota Department of Education.

A shutdown may delay payments to schools.

Jane Houska, Farmington Area Schools fiscal operations manager, told me that the district anticipates receiving about $1.8 million on July 15.

Michelle Vargas, chief financial officer of Anoka-Hennepin School District 11, the state’s largest district, reported that the district anticipates a payment of $13.6 million on July 15.

What’s the impact of a delay in payments?

“With the potential shutdown of the state,” Houska wrote, “the district has positioned itself to carry on business for a little while, but there are always concerns to be thinking about.”

In the short-term, the district is in the process of setting up a line of credit, which will cost the district more in lender fees, according to Houska.

She said the district won’t be able to direct that money toward classroom expenses, where they were intended to be spent.

“If we don’t receive our aid payments for the month of July,” she wrote, “we have interest payments on our bonds that are due by the beginning of August, which will put us in a cash flow crunch. If the government shutdown is for an extended period of time, we will need to look at other scenarios to keep our business running.”

She said another issue will be the ability of teachers to renew or for new teachers to obtain their teaching licenses in a timely manner.

She put forth a scenario where new teachers might not be able to obtain their licenses by the time school starts in the fall because of a six- to eight-week turnaround on the licenses currently with government operating at full strength.

Like the Farmington School District, Vargas wrote Anoka-Hennepin has cash flow to cover missing the July 15 payment, so operations will not be affected. The district is also developing plans for a long-term government shutdown.

Jerry Hansen, Milaca superintendent, pointed out that many school districts, including his, have summer construction projects.  But construction also involves state review of plans and state inspections. Without those people in place, construction is delayed.

Olson, chair of the Senate Education Committee (and a Republican), told me that “based on advice from our staff, I believe the governor and MDE already have the authority to make general fund payments to schools.”

She says that the administration would have to designate people as “essential” to actually send the checks to schools.  But she hopes that a shutdown can be avoided.

According to Briner, state aid payments to schools have not been deemed a “priority 1 or 2 critical service” or those which affect life or safety.

“Ultimately, it is up to the court to make the final determination on critical services,” she wrote.

Briner and Olson agree that they want an agreement, not a shutdown.

The politics and principles are deeply felt and intense.  But I hope the courts conclude that regardless of the debate, state payments to schools should continue.

Educators are trying to do their best for youngsters.  They deserve the best we can do for them, which I think means, hire people and send out the money that schools already have been promised.

Joe Nathan, a former public school teacher and administrator, directs the Center for School Change at Macalester College.  He welcomes reactions, jnathan@macalester.edu. Columns reflect the opinion of the author.

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