Metro-area school districts made $61 million in cuts and reduced their reserves by $55 million heading into this school year, according to survey results released Wednesday.
The Association of Metropolitan School Districts estimates its 42 member districts laid off more than 600 employees to balance their budgets for the 2011-12 year.
In addition, about 60 percent of the districts will have to borrow money because aid payments are being delayed to balance the state's budget. The districts are expected to borrow about $382 million this school year, paying about $3 million in interest.
"While the governor and legislators went to great lengths to protect education funding in the face of a $5 billion budget shortfall last session, the reality is that most school districts continue to face significant budget challenges," Scott Croonquist, the association's executive director, said in a statement.
Lawmakers decided earlier this year to delay about $2.8 billion in aid payments to schools to fill Minnesota's budget shortfall.
That will force 26 of the association's districts to borrow money this school year to maintain cash flow. Last year, 15 took out loans to cover expenses because of state aid shifts.
Five east metro districts anticipate they won't have to borrow this year. But Anoka-Hennepin will have to borrow $42.8 million, costing about $200,000 in interest. St. Paul anticipates borrowing $86 million, with $500,000 in interest costs.
In their
last legislative session, lawmakers increased education spending by about $650 million over the next two years. But about two-thirds of that money is due to increased public school enrollment and more children qualifying for special education services and programs geared to low-income students.Educators have argued it's not "new" funding.
For the past several years, schools have been educating a student population with more needs.
Since 2003, the percentage of Minnesota students eligible for free or reduced-price lunch has increased to 37 percent from 27 percent. The percentage of English language learners increased to 7.7 percent from 6.2 percent.
And the share of students with special needs increased to 14.8 percent from 13.2 percent.
Districts receive state and federal aid for special education, but not enough to cover the costs. Special-education costs currently borne by Minnesota school districts exceed state and federal aid by $563 million a year, according to figures from the state Department of Education.
Megan Boldt can be reached at 651-228-5495. Follow her at twitter.com/meganboldt.