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On January 27, Governor Pawlenty released his budget recommendations for the 2010-2011 biennium. Overall, I thought Pawlenty did a good job of recognizing our state’s core priorities as we try to eliminate a $4.8 billion budget deficit.
When you face a shortfall of this magnitude, you can bet there will be tough funding decisions made. But you will likely be pleased to know that Pawlenty’s budget would not cut nursing homes; would not take children off statewide medical assistance; would provide incentives for small businesses to immediately create jobs; and would provide an increase for K-12 education.
The Governor's budget proposal for FY 2010-11 would spend $33.61 billion, a 2.2% reduction from current FY 2008-09 general fund expenditures of $34.36 billion.
To eliminate the deficit, Pawlenty would reduce statewide spending by $2.5 billion while the use of federal stimulus funding and a K-12 education funding shift accounts for $3.2 billion. State agencies would be cut by five percent (including the legislature), and local governments would also be asked to work together whenever possible in order to save money.
The governor was also fiscally prudent with his plan. Minnesota’s cash flow account would be kept at $350 million and the reserve would see $250 million added if his recommendations are approved. Best of all for working families: The plan contains no tax increases at a time when they can least afford them.
Over the coming days, you will likely hear doom and gloom regarding the health and human services portion of Pawlenty’s budget. What you should know is that his proposal actually recognizes a ten percent spending increase in this area over the next two years. He has also made it a priority to ensure that we will not going to cover fewer kids or remove children from MinnesotaCare. He also is prioritizing our elderly and handicapped through the protection of nursing homes.
What it does contain is a significant reduction to Minnesota’s welfare programs, which represents one of the most rapidly escalating portions of our budget. Pawlenty has made it clear when it comes to welfare programs it is no longer going to be business as usual. Pawlenty wants to scale back welfare in order to put benefits more in line with our neighboring states.
As with any plan, there were portions that I felt more strongly about than others. In fact, there are some portions of his budget that I am concerned about. Things like cuts to local governments, and residents losing their state health care coverage.
But overall, I thought it was a solid plan that prioritizes the taxpayers, our K-12 schools, and our elderly and disabled.
Soon, we will begin debating the Pawlenty budget in our House committees. And the time to act is now, as every day that passes without action costs Minnesota another $2 million – and the first month of our five month session is nearly over.