The state Senate has started to lay out the details of the first phase of its budget balancing plan. At a Senate Finance hearing Monday morning, committee chairs presented their budget proposals for higher education; the judiciary; environment, energy and natural resources; and agriculture and veterans affairs. The Senate’s proposed reductions are similar to the Governor’s supplemental budget, although there are some important differences.
Higher Education. The Governor proposed a $53 million reduction to this budget area in FY 2010-11, while the Senate proposes a $48 million reduction. Both the Governor and Senate would cut funding for the University of Minnesota and Minnesota State Colleges and Universities (MnSCU) to the maximum level allowed under federal restrictions connected to accepting stimulus dollars. Funding would be reduced to 2006 levels, resulting in a $36 million cut to the University of Minnesota and a more than $10 million cut to MnSCU in FY 2010-11.
However, the Governor and Senate differ significantly on reductions to financial aid programs. The Governor proposes a $2.3 million permanent reduction to the Minnesota State Grant program, eliminates the 9th semester of financial aid eligibility and ends the Summer Transition Grant program (which helps students pay for summer courses to improve academic skills before they enter college). The Senate does not cut base funding for the State Grant program, keeps the 9th semester of eligibility and partially preserves the Summer Transition Grant program. However, both the Governor and Senate would institute some rationing in the State Grant program to address a shortfall (students and families would be asked to contribute more to the cost of college) and both cut $2.5 million from the State Work Study program (these were new resources just approved last session).
Judiciary. The Governor proposed a $18 million reduction to this budget area in FY 2010-11, while the Senate proposes a $19 million reduction. In general, the Senate proposal cuts the judiciary by 1.7 percent in FY 2010 and by 3.4 percent beginning in FY 2011. As a result, the Senate would cut more from the Supreme Court, Court of Appeals, District Courts and Public Defense Board than the Governor’s proposal. However, the Senate recommends smaller reductions to Civil Legal Services, the Court of Appeals and the Tax Court.
Environment, Energy and Natural Resources. The Governor proposed a $15 million reduction to this budget area in FY 2010-11, while the Senate proposes a $19 million reduction. The Governor’s proposal relied on a number of transfers from special revenue accounts. The Senate felt many of those proposed transfers were not appropriate, so the committee had to look at deeper spending cuts to meet its target. As a result, under the Senate proposal, most areas of this budget received a three percent reduction in FY 2010 and a permanent eight percent reduction beginning in FY 2011.
Agriculture and Veterans Affairs. The Governor proposed a $5.7 million reduction to this budget area in FY 2010-11, while the Senate proposes an $8.0 million reduction. Both the Governor and Senate avoid reductions to the Military Affairs and Veterans Affairs departments. The Senate also adopts most of the Governor’s reductions to agricultural grants and programs. The Senate, however, proposes to significantly delay a portion of the ethanol payments to providers (saving $6.6 million per biennium beginning in FY 2010-11). These payments would be repaid at some point in the future. The Governor proposed a one-time $1.7 million cut in ethanol payments.
The Senate Finance Committee is expected to take up the economic development, public safety, transportation and state government proposals on Wednesday. All of these budget areas are being combined into a single budget bill.
-Christina Wessel
