ST. PAUL, Minn. (AP) — A $600 million line of credit that has served as a safety valve for Minnesota’s cash-strapped government has expired and won’t be renewed.
John Pollard of the Minnesota Management and Budget Department says officials decided the state’s finances had stabilized enough to do without the credit line. Minnesota paid nearly $4 million to open and maintain it for two years even though it was never tapped.
Then-Gov. Tim Pawlenty’s administration made the arrangement in 2010 with private lenders to make sure it could pay day-to-day bills without interruption. The credit line was renewed last year under Gov. Mark Dayton.
Money flows in and out of state government coffers unevenly, making a financial cushion important. Pollard says key state accounts have rebounded to the point where a cash shortage is unlikely.
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