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Local Impacts Of Proposed State Aid Cuts
Pope County Tribune - Starbuck Times
Written by Zach Anderson - Starbuck Times New Editor   
Friday, 26 June 2009 08:08


To make up for the temporary 27 percent state aid shortfall, Ohl told the board, "Borrowing money is the best way to do it. We're in line with most of our neighboring districts that are doing about the same thing."

To make up for the anticipated delay in state aid payments, MAS will basically take out a short-term loan of up to $3.4 million to fund the district's cash flow needs while waiting for state aid payments.

The district will pay back the loan by September of 2010 and pay anywhere from $60,000 to $100,000 in interest on the loan. The loan will not impact the district's debt service and will not impact local property taxes.

"In the last 10 years, there was only one year that we haven't done this and that was last year," Ohl explained.

School Board Member Jim Peters likened the bond to putting it on a credit card and making payments for the next 13 months.

Ohl agreed and said, "As any business does, we have to have cash flow to operate."

Pope County's two largest cities will take a hit in local government aid (LGA) after Governor Tim Pawlenty's state aid unallotment announcement last Tuesday.

Combined, over the next two years, the Cities of Glenwood and Starbuck will reportedly lose $291,339 in local government aid from the state.

LGA cut details

• City of Glenwood

• 2009 tax levy + LGA= $1,715,206

• 2009 LGA unallotment:

-$56,821 or -3.31%

• 2010 LGA unallotment:

-$131,107 or -7.64%

The City of Glenwood had anticipated $760,125 in LGA for 2009 - that will now be cut to $703,304. The city's 2010 LGA will be cut to $629,018.

Overall, Glenwood's LGA will be cut 8 percent in 2009, and 18 percent in 2010.



• City of Starbuck

• 2009 tax levy + LGA= $1,182,900

• 2009 LGA unallotment:

-$29,546 or -2.50%

• 2010 LGA unallotment:

-$73,865 or -6.24%

The City of Starbuck had anticipated $382,900 in LGA for 2009 - that will now be cut to $353,354. The city's 2010 LGA will be cut to $309,035.

Overall, Starbuck's LGA will be cut 8 percent in 2009, and 20 percent in 2010.

Because the cities of Cyrus, Farwell, Lowry, Sedan, Villard and Westport are all under 1,000 in population with less than the statewide average tax base, their LGA will not be cut. Neighboring Brooten, Clontarf, Hancock and Hoffman will not face cuts either.

The City of Long Beach does not receive LGA.

As of now, the cuts are proposed and will have to be finalized by the end of the month.

In December, LGA for cities over 1,000 was cut approximately 18 percent.

Governor Tim Pawlenty's state aid unallotment announcement will cut nearly $250,000 in county aid to Pope County for 2009 and 2010.

Although the figures are still preliminary, Pope County faces a cut of $82,222 in 2009 county aid, and a cut of $166,935 in 2010.

County aid cut details

• Pope County

• 2009 tax levy + county aid= $6,915,384

• 2009 aid unallotment:

-$82,222

• 2010 aid unallotment:

-$166,935

Pope County had anticipated $549,888 in county aid for 2009 - that will now be cut to $467,666. The county's 2010 aid will be cut to $382,953.

Overall, Pope County's state aid will be cut 15 percent in 2009, and 30 percent in 2010.