Park Rapids Area Schools will need to borrow money because of actions made by Gov. Tim Pawlenty.
The governor announced this week he would delay $1.77 billion in revenue to K-12 schools for the 2010-11 biennium.
The delay in payments to school districts means Park Rapids will need to borrow money to make up for the missing revenue.
Currently, schools get 90 percent of their state aid during the fiscal year, with 10 percent held until the fall, the following fiscal year. The governor's announcement means schools will receive 73 percent during the school year and 27 percent the next fall.
"Early predictions say we could have to borrow a half million or more," said Superintendent Glenn Chiodo.
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This may factor into higher reductions next year, he said.
"Literally, he's trying to balance the budget on the backs of schools," Chiodo said.
The Park Rapids School Board cut staff earlier this year to help balance the budget.
The school board voted to cut the following staff: Dave Free, driver's education teacher; Mitch Peterson, elementary principal; Rich Morehouse, physical education teacher; Barb Thomason, health; Charles Huber, middle school science; and Mike Clemens, middle school computer teacher.
The board voted to eliminate two .5 paraprofessional positions of Cindy Breezee and Juliann Kjenaas earlier this month.
Several retirements that were announced this year helped to reduce the number of cuts. The board was able to not fill some positions.
