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Money troubles

By Lori Ehde
Word is slowly getting out about Gov. Jesse Ventura's proposal for dealing with the state's looming $1.9 billion deficit, and it doesn't bode well for rural school districts.

Luverne Superintendent Vince Schaefer and District Financial Officer Marlene Mann say now is the time for residents to pay attention and lean on their representatives in government.

"We need their involvement," Schaefer said Tuesday. "We need to get the word out to voters to influence their representatives."

Last year, the burden for funding education shifted from property taxes to sales and income tax.

Meanwhile, the economic slowdown has reportedly reduced sales and income tax by $2 billion this year in Minnesota.

Part of the governor's solution to addressing the deficit is a requirement that schools pay sales taxes.

The Minnesota Rural Education Association has estimated that for some schools this could amount to roughly $25 per student. Conservatively, Mann said this could amount to $35,000 or more in additional expenditures for the Luverne district.

"That amounts to a staff person," Mann said.

Historically, Minnesota school districts have purchased supplies without having to pay taxes.

"It seems our local people would be taxed twice," Schaefer said.

At the same time, the governor's proposal calls for reductions in aid to schools, specifically in the area of special education.

The way school funding is formulated, rural school districts would lose more.

"Our sources tell us the plan as presented by Ventura will affect out-state Minnesota more than metro," Schaefer said. "The same thing is true for out-state cities."

He said there will be more discussion on state funding at the next School Board meeting on Jan. 24.

"If we can't be sure of our funding for a two-year period of time, it makes it difficult, if not impossible, to plan our expenditures," Schaefer said.

Sen. Arlene Lesewski can be reached at 131 State Office Building, St. Paul, MN 55155; Phone 651-296-4125; E-mail: sen.arlene.lesewski@senate. leg.state.mn.us.

Rep. Richard Mulder can be reached at 515 State Office Building, St. Paul, MN 5515; Phone 651-296-4336; E-Mail: rep.richard.mulder@house. leg.state.mn.us.

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