Cedar Rapids school district will rely on reserve funds to make up for state budget cuts

The Cedar Rapids school district will use its reserve funds to cover losses in state aid and county property taxes.

“We've been dealt a serious blow with the financial occurrence of the last few days,” Superintendent Dave Benson said at last night school board meeting.

The district will lose $8.4 million in state funding, based on the 10 percent statewide budget cut announced by Gov. Chet Culver Thursday.

Benson said the district will lose another $1.6 million in property-tax revenue due to the abatement of taxes for flood victims.

The district will use reserve funds to cope with the loss of $10 million. The district was set to have $15 million in reserves at the end of the fiscal year.

The budget wasn't on Monday's school board agenda, but Benson spoke briefly about finances. He stressed that despite the state of the district's operating budget, the flood recovery process will continue.

The process will result in new or renovated district facilities to replace those damaged by the June 2008 flood. The cost is partially funded by FEMA. Benson will recommend SILO dollars to cover anything exceeding FEMA's share.

SILO dollars aren't impacted by state budget cuts and property-tax revenue.