Smaller school districts in the Albert Lea area are feeling just as much of the heat from Gov. Tim Pawlenty’s announced deferrals to state K-12 funding as the larger districts throughout the state.

On Tuesday, Pawlenty announced $1.8 billion in deferred payments to K-12 schools in fiscal year 2010.

This means that in addition to a 10 percent deferral for state funding to districts already in place each fiscal year, there will now be 17 percent more of districts’ state-aid funds deferred until a later date.

It was an announcement that wasn’t a huge surprise to many of the area’s superintendents.

United South Central

“We knew it was coming, we just didn’t know what it would look like,” said United South Central interim Superintendent John Widvey.

“I guess it is what it is.”

For USC specifically, the governor’s announcement could mean a deferral of about $1.43 million dollars out of an about $5.3 million budget for the entire district, said JoDell Timm, USC business manager. This includes the already expected 10 percent deferral and the additional 17 percent.

“We think it’s going to have some impact on cash flow,” Widvey said. “And we’ve tried to plan for that by selling what we call aid anticipation certificates to cover the change in the cash flow.”

The certificates are similar to bonds, in that they are sold on the open market and then the district would have to pay them back.

The interim superintendent, who will be in his position until June 30, said he is also thankful there are federal stimulus dollars to help offset the reduction — though it will be a challenge with the additional paperwork.

“We’ll get through it,” Widvey said. “More or less we’re just thankful the governor held us harmless.”

He noted he is concerned, however, that if the economy doesn’t turn around, the governor will turn around and actually unallot instead of just defer from the schools during the second year of the biennium.

Alden-Conger

Alden-Conger Superintendent Joe Guanella said his school district is facing a deferral of about $754,000 out of an about $3 million budget.

Guanella said he was not at all surprised by Pawlenty’s announcement, in regard to its affects on the schools.

“I could have told you four months ago this was going to happen,” he said. “There were no surprises there.”

Like many other schools, Alden-Conger will probably use aid anticipation certificates, he noted.

“We’re just going full steam ahead,” Guanella said. “They have to do what they have to do, and we have to do what we have to do.”

Glenville-Emmons

Glenville-Emmons Superintendent Mark Roubinek said his district is expecting an about $500,000 delayed payment out of a $3.8 million budget.

Roubinek said the school board met Thursday night and talked about budgeting.

“We’re thinking we’re going to be OK,” he said. “It’s hard to tell with all the stimulus funds and how that affects us.”

The superintendent said the district will not have to borrow at all through the aid anticipation certificates; it will just have to dip into its fund balance.

“We’re still providing good educational services, but we’re getting down to where we can’t handle too many more state situations like this.”

He noted he thinks it’s better for communities and states to invest on the front end by having money in good programs for children in their youth than to pay out later through areas like corrections and law enforcement.