FOR IMMEDIATE RELEASE - MEDIA CONTACT: Libbie Krueger, (651) 296.

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District 17 Serving Anoka, Chisago & Isanti Counties Office: 120 Capitol, Saint Paul, Minnesota 55155

Senator Sean Nienow

March 21, 2012

NIENOW BILL CREATES PERMANENT SOLUTION TO PAY BACK CURRENT AND FUTURE SCHOOL SHIFT
(ST. PAUL) -- Senator Sean Nienow (R-Cambridge) today introduced a bill that creates a permanent statutory mechanism to pay back the current, and any future, school shift at an accelerated rate by withholding one percent of general fund appropriations until the shift is paid back. The bill directs the commissioner of management and budget to withhold one percent of general fund appropriations, with the exception of constitutionally-allocated and debt service payments, to provide an annual increase in the aid payment percentage for school districts. Under the bill, all state budgets will continue to receive less funding until the school aid shift is paid. Paying back any school shift must be a top priority. This legislation will create a permanent statutory mechanism to GUARANTEE it happens. Key reforms and job-creating measures contributed to a budget surplus that allowed us to already pay back nearly half of last years new shift and pending legislation could fully repay it. However, existing shifts from previous budgets will still exist. Current law does not guarantee payback at all, but this legislation will change that, Nienow stated. Aid payment shifts have been used since 1983 to assist in balancing the state budget during difficult financial periods. In 2011, the final budget agreement increased the shift from a 70-30 shift to a 60-40 shift. However, job-growth policies and budget restraint resulted in a budget surplus and a reduction of the shift. Nienow added, This bill not only will pay back the current outstanding shift to our schools, but it also guarantees any future shift will be paid back in a responsible manner as well. This is a permanent, structural solution that will give our schools additional financial certainty. Putting this bill into law in combination with other responsible legislative measures could result in the shift being paid back in as few as eight years. The bill was given its first reading on the Senate floor and referred to the Senate K-12 Education Committee. ###