On Wednesday morning, the Senate Finance Committee approved the first of what is anticipated to be three budget bills. This first bill includes spending reductions for 1) higher education; 2) the judiciary; 3) environment, energy and natural resources; 4) agriculture and veterans affairs; 5) state government; 6) economic development; 7) public safety; and 8 ) transportation. Earlier this week, we blogged on the first four of these budget areas. Today we have information on the last four.
State Government. The Governor proposed a $40 million reduction to this budget area in FY 2010-11, while the Senate proposes a $37 million reduction. The Senate proposes cuts ranging from three percent to six percent for constitutional officers, state agencies and boards. A major source of revenue used by both the Governor and Senate is to increase efforts to enforce tax compliance – which is expected to raise $20 million in resources to help balance the budget. There was also an amendment added in the Senate Finance Committee that would eliminate most assistant commissioners and some other high-level administrative positions, saving the state $4.9 million.
Economic Development. The Governor proposed a $53 million reduction to this budget area in FY 2010-11, while the Senate proposes a $29 million reduction. There are some major differences between the two proposals. The Governor’s plan relied on several large transfers, including $30 million from the Douglas J. Johnson Economic Protection Fund and $5 million from the 21st Century Minerals Fund. The Senate bill does not include either of these transfers, instead relying on $6.1 million in transfers from special revenue accounts in the Department of Commerce. The Senate would also increase a securities filing fee, raising $8.5 million in FY 2011 for the general fund.
Overall, the Senate’s proposal makes smaller cuts than the Governor to workforce development programs within the Department of Employment and Economic Development, although the Senate recommends a slightly larger cut to the Jobs Skills Partnership. The Governor eliminates all state funding for public broadcasting and the Minnesota Humanities Commission and begins to phase out funding for the Minnesota State Arts Board. The Senate only recommends some smaller cuts in these areas. However, the Senate recommends larger cuts to funding for preserving affordable housing than the Governor.
Public Safety. The Governor proposed an $18 million reduction in this budget area in FY 2010-11, while the Senate proposed a $42 million reduction.
The Senate’s proposal cuts funding for the Department of Public Safety (DPS) by $3.4 million in FY 2010-11, which is about a two percent cut in FY 2010 and a four percent cut in FY 2011. This is a smaller cut than the Senate applied to other agencies, but more than the Governor, who recommended a $1.8 million increase for DPS. The Senate proposal includes a $2.2 million cut to the Office of Social Justice programs, although the language protects grants to youth intervention, domestic violence and sexual violence programs. The Governor and Senate both provide $1.6 million in disaster relief for Red River flood reduction from the general fund. The Senate also provides $2 million in special revenue funds for fire fighter training not included in the Governor’s budget.
The Governor proposed $7.4 million in reductions to the Department of Corrections, including eliminating the popular Sentence to Service program. The Senate recommends $28 million in reductions to Corrections, once again a two percent reduction in FY 2010 and a four percent reduction in FY 2011. While the Senate does not specify how these cuts should be made, the Senate language does protect Sentence to Service, offender re-entry programs and discharge planning for mentally ill offenders. The Senate acknowledges that it will be very challenging for correctional institutions to meet this level of cuts.
Transportation. Most funding for transportation services comes from federal funding and dedicated funds, so there are minimal changes in this area. The Governor proposed a $5.1 million general fund reduction to this budget area in FY 2010-11, most of the reductions coming from funding for Metropolitan Transit (through the Met Council) and from a non-metro transit grant. The Senate general fund reductions consist of a $9.5 million reduction to Met Council transit in FY 2011.
The Senate Finance Committee sent this bill to the floor for introduction and the next step is for it to be referred to the Senate Tax Committee. This is just the first of three Senate budget bills: the next bill up is expected to be Health and Human Services and then a third bill with E-12 Education and Local Government Aid.
-Christina Wessel & Scott Russell
