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Budget Shift Affects East Grand Forks Schools

The East Grand Forks School Board talked tonight about how the state's plan to balance the budget will impact students.

Earlier this month Minnesota legislators agreed on a plan to balance the state's budget and erase a three billion dollar deficit.

Governor Pawlenty's plan to cut three billion dollars delays nearly two billion dollars in payments to Minnesota schools. Superintendent David Pace says this will affect their schools more next fiscal year. Pace says the shift in dollars could be some work for the school district. To the tune of nearly $200,000.

"Two years down the road we're going to have to look at probably a way to find additional revenue away from the state or make some pretty significant reductions."

Pace says the school is not losing money and it should be paid back, but it will have to pay interest on the loans while it waits for payment from the state.