Terri Bonoff

Governor Vetoes Tax Bill and Asserts Line-Item/Unallotment Authority
The Legislature sent the Governor a budget bill last week that would have raised $1 Billion in new revenue and dedicated the funds to state government's core functions: education, nursing homes, and hospitals. This was one third of the Senate's three-part plan to balance the budget with one third spending cuts, one third federal stimulus funding, and one third new revenue. While the bill was vetoed hours after passage, the Legislature remains interested in providing a long-term, sustainable funding source that will maintain high quality in our classrooms, nursing homes, and hospitals.

The Governor has stated that he will pass the Legislature's Omnibus bills and then use his line-item veto authority to remove certain provisions. Because he has vetoed the Tax Bill, this will still leave a significant budget shortfall which he will address beginning in July using his unallotment authority. My colleagues and I remain hopeful that a compromise can be reached before the end of the Legislative Session on Monday night that will allow stable and adequate funding for education, public safety and other vital services.

Senate Passes Health Care Budget Conference Committee Report
On May 11, the House and Senate passed their Health and Human Services Finance conference committee report.  The Health and Human Services Omnibus Finance Conference Committee was given a budget-cutting target of $613 million for the 2010-2011 biennium. Because of an additional $110 million in federal funding from the American Recovery and Reinvestment Act, the conference committee was able to reduce their cuts to just over $500 million.  For 2012-2013, the target was $804 million. An overall administrative cut of $12 million was made to the Department of Human Services and $4 million to the Department of Health in 2010-2011 and 2012-2013. Without the additional revenue the Tax Bill would have brought, the conference committee must consider an additional $400 million in cuts for 2010-2011 and over $600 million for 2012-2013. 

No additional health care eligibility cuts were made in this conference committee. Governor Pawlenty, in signing the bill, employed a line-item veto to strike $381 million for the General Assistance Medical Care program for childless adults in fiscal year 2011. I strongly oppose this measure. It devastates hospitals and is harmful to vulnerable adults.

I was pleased to welcome my own Rabbi, Simeon Glaser, of Temple Israel to the Senate last week, where he offered the opening prayer.

Senate Passes Major Conference Committee Bills
With the final days of the 2009 Legislative Session upon us, the Minnesota Senate passed six major conference committee reports and sent them to the Governor for his signature. Bipartisan groups of legislators from both legislative bodies met to iron-out the differences between the House and Senate versions of the bills.

Among the bills passed was the Omnibus Energy Policy Bill. This legislation included numerous provisions to encourage the development of solar energy, other renewable resources, and energy conservation.  Experts feel this legislation will help utilities and the state reach the goals established by the Legislature and Governor in recent years requiring 25% of the state's energy to come from renewable sources by 2025 and an 80% reduction in Minnesota's greenhouse gas emissions by 2050.

The Senate passed a comprehensive $299.9 million Capital Investment Bill designed to create thousands of Minnesota jobs, while focusing on important infrastructure needs in every part of the state. This included more than $50 million in much-needed funding for flood prevention and relief efforts. The bill also completed the state's share of investment in light rail between downtown Minneapolis and downtown St. Paul, and furthered the study of a high-speed rail line between the Twin Cities and Chicago.

Heeding the Governor's call for cuts in state agency funding, the Senate passed an Omnibus State Government Finance Bill that reduces nearly every state agency's budget by 5%. The bill enacts cuts of more than $40 million per year across state government over the next two years, while making strategic investments in efforts such as tax compliance. The House, Senate, and Governor's Office all take 3% cuts under this bill.

The Omnibus E-12 Education Bill holds school funding at its current levels, using federal American Resource and Recovery Act dollars to sustain education funding without cuts for the coming biennium. Approximately $500 million of federal stimulus money is used for Minnesota school districts. The 2010-2011 biennial education budget totals $13.89 billion. There is no funding formula increase. I was disappointed that many of the Senate proposals for education did not make it into the final version of the bill, including provisions for early childhood education allowances and efforts at systemic reform and cost savings.

The bill contains numerous policy provisions, including charter school reform, special education reform, mandate reduction, and statewide testing changes. The bill cuts $1.5 million from the Department of Education and uses that money to fund Reading Corps and Math and Science Teacher centers. School districts will also be allowed to again transfer $51 per student from capital accounts to General Fund accounts, helping to ease school budget deficits. While it was positive that education was spared further cuts, and I was honored to be part of this process, I was again disappointed that the outcome wasn't stronger.

The Higher Education Bill includes tuition caps at both the University of Minnesota and the MnSCU system, capping tuition increases at 3%. The University of Minnesota's funding is cut 2%, when federal stimulus funding is included. The Minnesota State Colleges and Universities system will see a 1% cut after including stimulus dollars.

The Governor has three days to sign the bills and legislators will know by Saturday, May 16 at midnight if the bills will become law. The session will end Monday, the 18th of May, and I will send out a Session Recap after an opportunity to fully digest the final outcome. Please join me in offering a prayer for all Minnesotans, that we as your legislators come together and reach a bipartisan solution that provides the foundation for economic recovery and lays down a path for future growth and restoration.

Sincerely,