Association of Metropolitan School Districts Update

June 30, 2011

Still No Budget Deal

Budget talks between the Governor and legislative leaders have continued behind closed doors the past several days but there is still no agreement.  At this point, it certainly appears that state government functions will shut down pursuant to Judge Gearin’s order effective at midnight tonight.  Actually, most state agencies have already begun the shutdown process.

Shutdown Update

The MDE has issued a press release announcing the actions they will be implementing related to the court order. The MDE’s interpretation of the court order is that open and standing appropriations will continue to be paid.  This includes general education aid, property tax credits and debt service equalization.  No other State or Federal aids will be paid including special education.  MDE staff stated that they are still reviewing the issue of federal special education payments but at this point, they do not believe the court order allows them to make these payments.  One wrinkle is that current law requires the MDE to use the 90/10 payment schedule.  I am attaching a memo from Tom Melcher outlining the schedule the MDE will use to make payments.  An Excel spreadsheet outlining the payments will be available later today on both the program finance webpage and in the shutdown FAQs:  http://education.state.mn.us/MDE/About_MDE/Shutdown_Planning/index.html

In addition, I have been in contact with MSBA staff and the three intermediate district superintendents and several options are under consideration including scheduling a hearing with the Special Master to make the case that state and federal special education payments must be made.  Former Supreme Court Chief Justice Kathleen Blatz will be serving as the Special Master and will begin hearings on July 1 in Room 230 of the MN Judicial Center.

AMSD Blog

Further information about the shutdown is available on the AMSD Blog.