Actually, It sounds like a very good idea. A 500 million dollar payment would put a good dent in the states overall debt.
Here is a better idea, they follow President Bush's example and give the money to the wealthy?
I am all in favor of paying down debt, and if we did not have President Bush, we would be well on our way of being out of debt in this country.
Here is a reality, $500 million is a lot of money, but it is .543% of the debt, otherwise known as a drop in the bucket. I can see the logic of utilizing the money for schools where you will get more bang for the buck. I am sure there is a debt reduction plan already in place, so I can't imagine that this surplus will add any short term benefit where education has both short and long term benefits.
This state has major issues if they are $97 Billion in the hole. If they paid back the debt in $500 million dollar increments, it is going to take them 194 years to pay it off. Maybe with the education that the $500 million will give the youth of this state, there will be new ideas coming out to fix the problem that it appears they will have for some time to come.