June 16, 2020

Loss of GPT, transportation payments will have $2 million impact on district’s budget

By Neal A. Shipman
Farmer Editor

The McKenzie County Public School District No. 1 will have to dip into its carryover funds in order to make up a $2 million drop in revenue to meet its 2020-21 budget.
That was the message that Steve Holen, district superintendent, shared with school board members during their regular board meeting on Monday, June 8.
“We are going to see a $2 million drop in revenue as the district will see less Gross Production Tax revenues and less state transportation payments next year,” stated Holen.
While the board is just beginning its initial work on the new budget, which Holen estimates will be around $30.2 million, he is not surprised that it will be a deficit budget.
“Our per pupil payments from the state are based on the previous year’s enrollment. And some of the revenues that we received last year, such as GPT and flood control, will now be deducted from this year’s formula.”
In addition, the school district did not see a significant increase in student numbers last year, according to Holen, which would have provided more state funds.

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