Minnesota schools to receive $463 million due to 2013 budget that accelerates plan to pay back schools

When I was a kid, I remember borrowing a little money from my parents who warned me that I would, of course, have to pay that money back. Being a kid and not listening much, I wasn’t too happy when I had to use some birthday money to pay them back — but I certainly learned the lesson.

Legislators and Governors from both parties have borrowed money from our schools to paper over structural budget deficits. Most recently, the 2011 Budget borrowed $2.4 billion from schools while leaving an additional deficit for the current legislature to address. Like any responsible person or family who has debt, we’re paying it back.

Minnesota Management and Budget recently announced that — thanks to a growing Minnesota economy — the state collected an additional $463 million in revenue during the past budget cycle. Rather than wait until the new state revenue forecast is issued in December, the budget passed by the current legislature will accelerate the repayment to ensure 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.

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:  

• 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.

• 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.

• 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.

• 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. The point of the scholarship is to ensure that all students are ready to learn when they start school, benefiting not only that student but all students in the class.  

As always, if you have questions, comments or concerns about legislative issues, please send me an email at Rep.Joe.Atkins@house.mn or give me a call at (651) 296-4192.

Thank you.

Joe