St. Paul, Minn. - A survey of more than two dozen metro-area school districts reports they will have to borrow money this year to meet cash flow needs - and this year's state budget is to blame.

The provision in the state budget to defer a larger payment to schools is draining the districts' cash on-hand, says the Association of Metropolitan School Districts, which conducted the survey.

North St. Paul-Maplewood-Oakdale is one district that is borrowing this year. Officials there will close on a financing plan today that essentially amounts to a $17 million loan, which is needed to ensure that all bills are paid and everyone gets a paycheck. Superintendent Patty Phillips estimates the district will have to spend around $80,000 in financing costs - the equivalent of about two teachers' salary. The district has avoided borrowing for several years.

"We've lived off our fund balance and we've been able to manage the cash flow, but once it's 40 percent, it's pretty tough," Phillips said.

The 40 percent she refers to is this year's payment deferment. The state budget that passed this summer following the state government shutdown included delaying 40 percent of payments to schools until the next fiscal year. It had been 30 percent and is historically much lower, but Phillips says the extra 10 percent this year dictated her district's need to borrow.