Saint Paul, Minnesota – Minnesota Management and Budget recently announced that the state has $463 million in unaccounted revenue collected during the past budget cycle. As a result of action by the Minnesota Legislature, that money will go to Minnesota schools in an effort to pay back the money borrowed from schools. State Representative Joe Radinovich (DFL – Crosby) said the money will help repay schools in Crow Wing and Aitkin Counties whose budgets have been raided in years past to patch over state budget deficits.
“For too long our state has used borrowing from schools as an accounting gimmick to paper-over budget deficits,” said Rep. Radinovich. “This is no way to balance budgets or provide a world-class education to our kids. Our budget does the right thing and pays them back. By keeping our priorities in line with Minnesotans we can work to fully pay back our schools by 2014.”
Rather than wait until the new state revenue forecast is issued in December, the budget passed by the DFL-led legislature will accelerate the repayment to make certain schools will receive dollars they are owed and deliver it sooner. Minnesota Management and Budget will certify the final amount schools will be paid back by September 30th.
The state has borrowed from schools as an accounting gimmick to patch budget deficits in previous years. The 2011 Budget borrowed $2.4 billion from schools while leaving an additional deficit for the current legislature to address. Instead of adding to the “IOU” the current legislature passed a budget that resolved the deficit without borrowing and with a plan to pay back what our schools are owed sooner. As a result, about $2 billion of the debt owed to schools will have been repaid, putting the state in a good position to fully pay back schools by 2014.
Accelerating the school payback is one of many highlights of a state budget that made a historic $485 million investment in education for all learners. Along with settling past bills, the budget passed by the legislature and signed by Governor Dayton includes:
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More Funding for Every School in Minnesota: The budget invests an additional $238 million in the school funding formula, providing schools with an increase in funding in each of the next two years.
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All Day Kindergarten for Every Child: The budget invests $134 million to help Minnesota school districts provide optional All-Day K to every student, free of charge. Currently, only 54 percent of Minnesota’s Kindergarten students have access to free all-day Kindergarten, with thousands of families having to pay out of pocket.
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Reform to the Special Education Formula. The budget invests $40 million in special education reform, providing needed funding reform and greater funding equity for schools.
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Early Learning Scholarships for 8,000 Kids. The budget invests $40 million in scholarships that will help thousands more children attend high quality child care and preschool to ensure that children are prepared for Kindergarten and beyond. Families will be eligible for up to $5,000 in scholarships.
“We made a promise to the people of Minnesota to pay our schools back and make education a top priority,” said Rep. Radinovich. “We kept that promise and passed a budget that accelerates our plan to pay back our schools while making historic investments in things like all-day kindergarten. We’re on the path to stable budgets and a stronger economic future for Minnesota.”