The House has approved a proposed Constitutional measure that would change the allocation of money to the foundation aid stabilization fund.
That fund was created after budget shortfalls caused significant cuts in funding for local schools. The fund has 300-million dollars in it. And supporters of the Constitutional change say the schools don’t need the money, with the state on good economic footing.
Some of the money would go into a state retirement fund – to help shore up the public employees’ and teachers’ retirement fund.
House Minority Leader Kenton Onstad (D-Parshall) wondered if there is another reason to divert that money to the retirement plans.
"It's also possible that the fund could grow so large that the Legislature would buy out the retirement funds, in order to convert retirement plans to 'defined contribution' plans," said Onstad.
State employees and teachers are in "defined benefit" plans.
The sponsor – House Appropriations Committee chairman Jeff Delzer (R-Underwood) – says the idea is to help those funds meet their unfunded liabilities.
"WE should put enough money aside to cover the unfunded liability if and when it comes before the Legislative assembly," said Delzer. "If you have to cover it, and you don't have any money, then you have real problems."
The measure passed 79 to 13. If the Senate passes it, the measure will be on the ballot in 2014.
