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.
Author:
Updated:
Original:

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.

Next Up

Related

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.

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.

Minnesota Senate passes GOP tax relief measures along party-lines

After two and a half hours of debate Friday, Republican Senators agreed to reduce and eventually eliminate the state’s property tax on businesses and give married couples an income tax break. The $100 million dollars in tax revenue would be covered with the state’s budget reserves. The House has passed companion legislation, but there are several differences. Gov. Mark Dayton does not support the proposal.