Surplus provides $636 million in back pay to schools


Minnesota's public school districts should begin receiving checks from the state government at the end of next month thanks to higher-than-expected tax revenues.

The Associated Press reports the state is providing $636 million, $200 million more than predicted in July, leaving about $238 million in IOUs to schools.

The amount each district receives, which will be announced in a few weeks, will be dependent on enrollment, according to the Associated Press.

During the economic downturn, Minnesota drained its reserves and withheld $2.8 billion in payments to school districts to balance the budget over imposing deeper cuts or raising taxes.

By law, any revenue that comes in over projection must go to replenish the state’s reserves and repay school districts.

In addition to increased tax collections, the Star Tribune says there was also unexpected savings from reduced spending on health and human services costs.

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