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State repays BEA $2M

By Staff | Jun 19, 2011

Dale Brandsoy

At the Blue Earth Area School Board meeting Monday, Superintendent Dale Brandsoy had answers to questions involving funding issues and the replacement of eight retired teachers.

Brandsoy first announced BEA had received the delayed payment of $2.3 million in funds from the state.

Due to the state withholding payments to Blue Earth Area since January, district officials had plans in place to take out a loan from a local financial institution while they were waiting to get back the funds that were essentially borrowed by the state.

The school never had to borrow money as the district was able to use reserves until the state fulfilled its promise of repaying the scheduled funds in late May. BEA’s large reserves were the reason why state officials felt they could withhold payments from the district at the onset of the delay.

Questions still remain about the state making its scheduled summer state aid payments. With the threat of a state government shutdown and a $5 billion deficit, Blue Earth Area and other state-funded schools are playing the waiting game.

“The state is struggling to get anything accomplished,” Brandsoy says. “No one knows how a shut down would impact schools.”

Brandsoy says it is all speculation right now, but hopes a state shutdown is avoided.

To see more of this article, see this week’s Register