Our new analysis released today takes a comprehensive look at the tough issues faced in the 2010 Legislative Session and the multistep process followed to bring it to completion. And we find that it was a session that can be characterized by the opportunities lost.
Clearly policymakers faced several tough issues this session. A nearly $1 billion deficit in the current budget cycle and a shortfall in the next round approaching $7 billion when the impact of inflation is included. Uncertainty about whether the courts would uphold the Governor’s unallotment decisions. Health care coverage for extremely vulnerable Minnesotans.
These challenges were resolved in three steps. First, policymakers agreed in March to $312 million in spending cuts and special fund transfers covering most parts of the state budget.
Second, the governor and legislature agreed to a compromise version of General Assistance Medical Care to maintain health care coverage for very low-income vulnerable adults, which reduced the state’s deficit by $147 million.
And third, a negotiated budget agreement passed at the end of the session addressed the remaining deficit. This agreement did not include the progressive revenue proposals or plan to cover low-income Minnesotans through Medicaid that had been earlier passed by the legislature. It accepted most of the Governor’s unallotments, including a substantial shift in school funding.
Because of heavy reliance on one-time spending cuts and timing shifts, these budget decisions did not make progress on reducing the future budget shortfall, leaving a profoundly difficult problem for the next legislature and governor to tackle next year. Read more in our analysis, 2010 Legislative Session closes with many opportunities lost.
-Nan Madden
