Submitted by admin on January 27, 2010 - 5:58am
in
Minnesota
Available NOW - 27% FY 2010 holdback
for MN charter schools.
MEET UNCERTAINTY WITH A PLAN.
Every public school in Minnesota has 27% of current year revenue held back through FY2010. 10% of the payments are defined by statute, 17% of the payments are not. The holdback is increasing to 30% in FY2011 and with the state budget facing a projected $5 billion shortfall in the next biennium, there is no sign of reprieve for education. Click through the tabs below to see how holdbacks will impact your school.
Minnesota Holdbacks
Our Sample School will have cash flow issues:
Situation:

• Annualized Revenue = $2.4 million ($10,000/ADM) with 200 ADM
• 10% Holdbacks = $240,000
• 17% Holdbacks = $408,000

Challenge:

• School needs to cover the 27% shortfall until at least next October
• 17% of these holdbacks may be delayed longer. School needs a plan

The Situation:
The school will face a $648,000 cash flow shortfall due to holdbacks