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.
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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.
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.
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.
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.
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.
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