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| Date: | March 21, 2012 | | Contact Name: | Libbie Krueger | | Contact Phone: | 651.296.1388 | | Contact Email: | elizabeth.krueger@senate.mn | | For Immediate Release | |
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| SEN. KRUSE AUTHORS BILL TO ADDRESS 2011 EDUCATION SHIFTS Measure would help districts manage their cash flow and replenish their reserves |
(ST. PAUL) – On Tuesday evening, the Senate Committee on Education voted to pass legislation to speed up the payment schedule of school aid funds that were delayed as part of the 2011 budget deal. The bill directs the state to use the reserves that were replenished with the recent surplus to pay the remaining $415 million of the shift.
To end last year’s politically charged and unnecessary state shutdown, the Legislature agreed with Gov. Dayton to borrow $700 million against the state school budget, adding to an existing $2 billion school aid shift. Since then, Minnesota’s budget has grown out of a $5 billion budget deficit to positive balance of $323 million, on top of an $876 million positive forecast last November which was moved automatically into budget reserves and cash flow account. The remaining sum was used to buy back a portion of the school aid payment shift.
The legislation would return the shift to the amount when Republicans took legislative majority, and will leave well over one-half billion dollars in the state's budget reserve and cash-flow accounts.
The legislation is authored by Education Committee Chair Gen Olson (R – Minnetrista). Senator Benjamin Kruse (R-Brooklyn Park), a co-author of the bill, gave the following statement regarding the bill’s passage:
“I understand the importance of paying back the shift as soon as we can. Job-creating measures and spending restraint helped get our state back on track and we were able to buy back half of last year’s shift,” Kruse said. “Minnesota’s students need to be our priority. We need to do everything we can to ensure they have the best education possible here in Minnesota and that includes providing our schools with increased financial stability.”
The bill also includes a provision to prohibit automatic teacher salary “steps and lanes” increases until a disputed district contract is settled.
The bill moves next to the Senate Finance Committee.
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