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Schools in dire straits get help

Published (2/27/2009)
By Kris Berggren
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esperate times call for desperate measures.

Three bills offering school districts tools to help them work out of financial crisis were approved by the House K-12 Education Finance Division Feb. 25 and held for possible omnibus bill inclusion.

HF427, sponsored by Rep. Debra Hilstrom (DFL-Brooklyn Center) would permit the 18 school districts and charter schools in statutory operating debt as of June 30, 2008 to waive their required special operating plans for fiscal years 2010 and 2011.

That wouldn’t erase the debt, but would allow districts to postpone some obligations temporarily as they regain fiscal health, Hilstrom said.

Hilstrom also sponsors HF429 to allow school districts in statutory operating debt to levy for up to three years to eliminate that debt without a ballot question. This, however, was of concern to legislators.

Both bills give districts “tools to educate young people,” said Rep. Tom Anzelc (DFL-Balsam Township). “But this one, without the wishes of the people of the district, troubles me some.”

Hilstrom, a former city council member, noted that school districts, unlike cities or counties, are the only local government authorities unable to levy for their needs.

Rep. Pat Garofalo (R-Farmington) said aligning local government units’ discretionary levy authority would enhance government “consistency and transparency.”

Now, “there’s only one chance” for voters angry about local actions “to take it out at the ballot box and it’s reflected on the schools,” he said.

Companion bills, SF464 and SF465, sponsored by Sen. Linda Scheid (DFL-Brooklyn Park), were laid over Feb. 17 by the Senate E-12 Education Budget and Policy Division for possible omnibus bill inclusion.

Rep. Tim Faust (DFL-Mora) sponsors HF778 to let districts with a negative fund balance authorize an operating levy referendum outside of the November election date. There is no Senate companion.

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