Dayton, Downey At Odds Over School Funding Shift

After the House and Senate passed identical bills that would in past years, Gov. Mark Dayton vetoed it Thursday, calling it irresponsible.

In a veto letter, Dayton said spending $430 million from the state's rainy day fund to pay a portion of the $2.4 billion owed to schools could potentially put the state in financial jeopardy down the road. He argued it didn't make sense to expend that cash reserve while the state is still struggling with its budget.

"As elected officials, we are responsible for the wise financial management of our state," Dayton wrote. "Our first priority should be assuring state government's financial stability. This bill would significantly increase that risk."

Reached by phone Friday, Rep. Keith Downey (R-Edina) was highly critical of the Governor's veto. 

Downey was quick to point out the biennial budget passed last summer would've left the state with only $94 million in cash reserves, far less than the $577 million that would have remained after paying down the funding shifts. He said it's disingenuous for Dayton to say he can't meet cash flow requirements with $577 million, particularly given the budget.

"It's clear to me the DFL party doesn't want to provide any good legislative success on our part this year," Downey said. "I think the strategy is to go out and create the impression of a do-nothing Legislature to help with elections in the fall."

Downey said the veto is nothing more than "partisan political games," which will see millions of dollars withheld from .

Minnesota historically paid schools 90 percent of their state money in one fiscal year and the remaining 10 percent in the next. DFL lawmakers and former Gov. Tim Pawlenty previously changed that to a 70-30 split to balance the state’s budget—effectively borrowing from schools. During the 2011 special session, Dayton and Republican legislators dropped it further to a 60-40 split.

As the split has grown wider, more schools have had to use short-term borrowing to get through until the next payment arrives—incurring interest costs along the way.

At it stands, there is no definite plan at the Legislature to fully pay back schools.

Here’s a rundown of other bills recently authored or co-authored by your legislators:

Sen. Geoff Michel (R-Edina): 

• Authored a bill enacting the Minnesota Small Business Trademark Protection Act and providing for a dispute settlement conference. SF2598, introduced April 5.

Rep. Keith Downey (R-Edina):

• Did not author any new legislation this week.

Rep. Pat Mazorol (R-Bloomington):

• Did not author any new legislation this week.

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