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Dayton vetoes GOP plan to partially reimburse Minnesota schools

Gov. Mark Dayton called the proposal an irresponsible "raid" on state reserves. The Republican plan would have used $430 million to payback a portion of an IOU to K12 schools. Minnesota owes schools more than $2 billion after it delayed payments to cover the budget deficit.
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Gov. Mark Dayton called the proposal an irresponsible "raid" on state reserves. The Republican plan would have used $430 million to payback a portion of an IOU to K12 schools. Minnesota owes schools more than $2 billion after it delayed payments to cover the budget deficit.

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House approves plan to use rainy day fund for partial school payback

House members approved the shift from state reserves to pay back repeated delays of education money to cover deficits. The House plan uses $430 million of the rainy day fund to go toward the $2.4 billion owed to schools.

Dayton intends to veto school payback plan

Governor Mark Dayton calls the plan to use reserves to partially pack back an IOU to Minnesota schools 'financially irresponsible'. The Republican proposal would draw down the state's reserve fund more than $400 million, which would pay only a fraction of the total amount the state kept back from schools in order to balance the budget and end a government shutdown last year.

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A scaled-back version of a Republican tax cut plan met the same fate as its predecessor when Gov. Mark Dayton vetoed the bill. Dayton said he could not sign a measure that would add to future deficits and reduce the state budget reserve. He also complained that the bill was aimed at cutting business taxes, without helping homeowners.

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The Minnesota Senate joined the House in approving a bill that would cut taxes by more than $40 million this year and by more than $140 million in the next budget cycle. But Governor Mark Dayton calls it fiscally irresponsible because it would take money from the budget reserve and would add to a deficit in the next biennium.

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Republican lawmakers have agreed to use $430 million in the state's budget reserves to catch up on delayed payments to Minnesota schools. Gov. Dayton has voiced some worries that tapping the budget reserves could leave the state with cash flow problems.

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Gov. Mark Dayton quickly vetoed Friday a Republican-backed tax bill that cleared the Legislature Thursday night, saying the measure irresponsibly added to the deficit in future years, Politics in Minnesota says. Dayton rejected notions that the veto would hurt the chances of Monday's Vikings stadium vote.