(Reuters) - More Minnesota school districts will borrow for cash-flow purposes in the current school year after the state delayed a chunk of education aid payments, according to a survey released on Wednesday.
The St. Paul-based Association of Metropolitan School Districts, whose 42 members serve 47 percent of the state's students, found 26 of the districts were expected to borrow $382 million, up from the 15 districts that borrowed for cash-flow purposes last year.
The group said the increase was due to Minnesota's new two-year budget, which delayed 40 percent of state aid due to schools as part of a plan to address a $5 billion shortfall.
The survey also found school districts reduced budget reserves by $59 million collectively and made $61 million in budget cuts for the current school year that included more than 600 staff reductions.
(Reporting by Karen Pierog)