Crookston schools forced to borrow money after Pawlenty's unallotment

Crookston school district officials plan to borrow money to make up for a delayed payment from the state.

District officials figured Gov. Tim Pawlenty would delay some state funding, but he is delaying more than anticipated to balance the state budget. Now the district has to redo its budget that accounts for a 27 percent delayed payment, not 20 percent that was initially factored in.

The Crookston School District will have to borrow a little more than $1 million in the form of "aid anticipation certificates" to pay the bills.

Superintendent Wayne Gilman says the certificates are invested and generate some interest and will be paid when the district gets the delayed money.

Other Minnesota district will have to do the same in order to keep enough cash on hand.

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Information from: Crookston Daily Times, http://www.crookstontimes.com

(Copyright 2009 by The Associated Press. All Rights Reserved.)