ST. PAUL, Minn. (AP) – Democratic Gov. Mark Dayton has vetoed a Republican-crafted bill that would have repaid state IOUs to Minnesota public schools more quickly.
Dayton said on Thursday that the method of payment would have left the state in a precarious financial position. Republicans drew on newly replenished state budget reserves as their payment source.
The state owes schools more than $2 billion because it slowed down aid to them while dealing with a state-level budget crisis. They are in line for $315 million in repayment this year because of a rosy economic forecast, but Republicans would have put another $430 million on top of that.
Dayton had threatened a veto. He says the bill would create a bigger budget problem down the road, including a likelihood of the state borrowing from banks.
(Copyright 2012 by The Associated Press. All Rights Reserved.)