Minnesota withholds payments to schools to pay the bills

Tom Weber:

School districts across Minnesota got word Tuesday that the state will withhold some of their funding in coming months.
Withholding payments will free up some of the state’s cash so it can pay its own bills. Today’s action is in addition to more than $1 billion in delayed payments to schools that were announced last summer.
School districts get their funding from the state in the form of twice-monthly payments.
Today’s move means both payments in March and one in April will be smaller than expected for many districts.
State finance officials predict they won’t have enough money in the bank during those months to meet their cash flow needs. So, the state will hold back a total of $423 million from schools. All of it will be paid back in May.