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Not much has changed . . .
In a new budget offer, GOP leaders announced they would drop $200 million in proposed tax cuts to slightly reduce total spending cuts that they had passed in their vetoed budget bills. In exchange, they want the Governor to drop his demand for $1.8 billion in income tax increases for the top 2% of Minnesota's wage earners. The Republicans called this move a big sacrifice on their part and the Governor called it very disappointing. The standoff continues . . . Read more.
Countdown . . . the state government will shutdown in just two weeks if there is not a budget agreement. The Governor has filed papers with the Ramsey County District Court specifying what he believes are constitutionally supported essential services . Payments to our K-12 schools are not included and would not be processed past July 1st. The court will make the decision of which services will continue and is scheduled to convene on June 23rd to hear arguments.
Both sides are so entrenched in their positions, it hard to see how a shutdown can be avoided. The Governor and the Republican leaders need to get past just repeating the worn out soundbites and look beyond to get to a compromise. If more revenue is a must for the Governor, and tax increases are completely off the table for the Republicans, are there any new revenue streams that all could agree to? A solution is possible which will require sacrifice from all Minnesotans. We expect our elected leaders to work together and get the job done! |
How would a state shut down inpact our schools?
School districts across the state are scrambling to prepare for a potential loss of state funding. Districts would have to use reserves until gone and/or borrow money to get through the summer months of summer school and extended year programs. But if the shutdown continues to mid-August when preparations for the new school year begin in earnest, most schools will struggle with paying their bills. Nearly every district is looking into securing a line of credit in hopes that they can open school doors in September if funding is not resumed.
Unfortunately, we are hearing that interest rates are rising; compounded by the uncertainty of the actual revenue our schools will receive once a budget deal is negotiated. The really cheap money is gone. The cost of borrowing money will come out of educational opportunities for our children. Read more. |
