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House, Senate Republicans reach deal to pay back K-12 schools

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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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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Senate passes Republican effort to start paying back schools

The Senate gave it's approval to use the state's reserves to pay down a small part of the debt owed to Minnesota schools. The measure gets the state about a fifth of the way toward the $2 billion amount elected officials put off to solve past budget woes.

House and Senate vote to use reserve fund to pay state debt to schools

Both the House and Senate approved Republican-backed bills to pay off Minnesota's debt to its schools by drawing down the reserve fund. But Governor Dayton is not a fan of the idea. Dayton and other DFLers think it would leave the reserve fund too depleted.

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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Republicans want to use state budget reserve to pay off debt to schools

Minnesota has borrowed more than $2 billion from its schools to cover recent budget deficits. A group of Republicans says now that the economy is stronger the state should pay off that debt with money in reserve. But Governor Mark Dayton says raiding the reserve fund could leave the state vulnerable if the economy heads south again.

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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.