State to make good on IOUs to school districts - Bring Me The News

State to make good on IOUs to school districts


School districts across the state will be listening intently on Monday as Minnesota budget officials explain how much back-pay the state will shell out to them.

The Associated Press reports that the money coming to schools will arrive as a result of the improving economy and higher tax collections. In recent years, state legislators trimmed more than $2 billion in payments to schools to cover state government's budget. A large percentage of that loan has been repaid, but the districts still hold outstanding IOUs in the $800 million range.

Schools are first in line for any excess tax collections. A law passed last spring gave finance officials until Sept. 30 to figure what was left after the fiscal year closed on June 30.

There have been numerous groups that have lobbied for the state to repay its debt to school districts.

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