DULUTH, MN (Northland's NewsCenter) - Minnesota Governor Mark Dayton vetoed a chance for schools to retrieve some of the money borrowed from districts to help close the state budget gap over the past few years.
Governor Dayton says although he shares the legislature's desire to repay school debt quickly, pulling $430 million from the state's budget reserve is not the right way to do it.
Dayton says raiding two-thirds of the Budget Reserve would reduce the state's protection against future volatility.
Duluth school district leaders say the veto was not a surprise.
"We had a feeling that this was going to be coming, and we certainly understand it, being the financial state of the state. We're glad to hear though that the governor is very willing to continue discussions to find some middle ground on this issue," said Duluth superintendent Bill Gronseth.
While Republicans were hoping to repay schools with the reserve money, Democrats say the legislature should have made budget cuts, like closing tax loop holes for companies doing business overseas, instead of borrowing from schools in the first place.
Posted to Web by Jena Pike