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CITY, N.D. (NewsDakota.com) Auditor Harold Rotunda told the Valley City school district during his report that the state school funding formula is flawed and needs to be fixed. He says it favors the biggest school districts with growing enrollment. He says districts like Valley City who are not growing are hard pressed under the formula.

Rotunda says school districts have to watch their bottom line closely and there are no guarantees what the formula will look like down the road.

Superintendent Dean Koppelman agrees the formula needs to be fixed. He says the school district was faced with cutting activities earlier this year.

Rotunda believes more school districts may have to cap salaries and cut activities unless the state comes up with a better way to fund those districts that are facing declining enrollment.

Koppelman encourages everyone around the state to visit with their local state legislators during the upcoming 2015 legislative session and press them to find a different way to improve the per pupil funding formula.

Projected revenue for the Valley City School district is estimated at $14,019,563 while the estimated expenses are $13,397,816.