June 19, 2009 - Legislature challenges Governor’s unallotment decisions Christina Wessel, Minnesota Budget Bites On Thursday afternoon (June 18, 2009), Tom Hanson, Commissioner of Minnesota Management and Budget (MMB), presented the Governor’s unallotment plan to the Legislative Advisory Committee (LAC). This is a required step in the unallotment process. Legislators were prepared with plenty of questions…and lots of challenges (you can watch the video online). But remember, the LAC does not have any authority to reject or change the Governor’s unallotment decisions....
Does the Governor have the authority to enact the school aid payment shift? The $1.8 billion proposal to shift aid payments to schools really has two components – a payment deferral ($1.2 billion) and a change in when property tax receipts are recognized ($600 million). Pogemiller strongly asserted that the Governor does not have the authority to enact the property tax recogniztion component of his plan, leaving a $600 million gap in his unallotment proposal. Pogemiller threatened legal action if the Governor continued to pursue this part of his unallotment plan.
Senator Pogemiller and other legislators also argued that while the Governor may have the authority to carry out the delay in payments to school districts (the $1.2 billion part), he does not have the authority to pay the shift back to schools in the future. So, he argued, the Governor’s proposed school payment shift is really a $1.2 billion cut to school districts unless the legislature authorizes the payment to schools in the future. However, pointed out Pogemiller, since the Governor vetoed the tax bill, there will be no additional revenue available to make schools whole again.
Commissioner Hanson and the staff from the Department of Education insisted that the Governor has the necessary authority to carry out everything he proposes. - More - |
June 16, 2009 - K-12 Payment Deferrals and Adjustments - $1.77 billion Beginning in FY 2010, aid payments to schools will be temporarily reduced, generating $1.17 billion in savings. In addition, under M.S. 123B.75, the Commissioner of Education will require school districts to recognize a portion of their levy revenues when they are received, Minnesota Management & Budget.
“Shifting state aid to public education from one year to the next is a devastating blow to Minnesota’s schools. Because of Gov. Pawlenty’s decision, those school districts that have a balanced budget will now have to borrow money to pay their bills and then have the additional burden of paying interest on that loan. Those school districts lucky enough to have a budget surplus will spend it on the governor’s budget adjustment and not put it in the classroom where it belongs." |
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