Lake Superior School District budget 'not a pretty sight'School board members learned that the Lake Superior School District will be in the red next year.
By: Brittany Berrens, Lake County News Chronicle
Lake Superior School District board members learned that the district will be in the hole next year after looking over the budget at its first meeting in about a month Tuesday.
Business Manager Sue Mitchell presented the board with a preliminary budget summary, which shows the district may be down about $998,000 for the 2011-2012 school year. Several factors, such as waning federal stimulus money, factor into the deficit.
“It’s not a pretty sight, but it is what it is,” said Superintendent Phil Minkkinen.
Because of shrinking federal funding and uncertain times with the Minnesota government, Minkkinen suggested that the board consider taking out a line of credit to cover the deficit. He also said the district would look into applying for the Minnesota Tax and Aid Anticipation Borrowing Program, which is a fund available for school districts that expect a cash flow deficit in an operating fund. Because of a potential state shutdown July 1, the district isn’t sure which is the more viable option.
In other school board member discussion, Minkkinen said DRCC Aurora was interested in buying either four lots for $50,000 or six lots for $60,000 from the old high school area. The company wants to build an assisted living facility. Minkkinen suggested that the board opt to sell the four lots because the rest would be easier to sell with definitive plans in place.
The school board will meet at 6 p.m. Tuesday at Two Harbors High School to vote on these agenda items and other issues.