Mar 9, 2012 at 9:42 am
ST. PAUL, Minn. (AP) - Minnesota legislative Republicans and Democratic Gov. Mark Dayton are at odds over whether to dip into state rainy-day funds to more swiftly pay schools for IOUs from past budget fixes.
The disagreement played out Thursday in competing news conferences and committee hearings. Republicans advanced a bill that would pare the state's debt to schools by $430 million by taking the money out of a reserve account.
Dayton and his budget commissioner warned that it would put the state's finances at risk if the economic recovery falters.
More than once in recent years, the state temporarily held back a portion of aid payments to schools to reduce its deficit. GOP leaders say schools shouldn't have to wait as long to get money back while the state has money in reserve.