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Minnesota House of Representatives

State Representative Denny McNamara

359 State Office BuildingState Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-3135

For more information contact: Jason Wenisch 651-296-2317

Posted: 2010-05-20 00:00:00
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NEWS COLUMN

NEWS AND VIEWS WITH REP. DENNY McNAMARA

The long awaited budget deal has finally been reached at the State
Capitol. Legislative leaders and Governor Pawlenty found a compromise
during the final hour of the 2010 Legislative Session, and we held a
brief special session on May 17 in order to process the paperwork and
take a final vote. I voted yes.

What’s impressive is that our $3 billion budget deficit has been
eliminated without enacting any tax increases. Here are some other
provisions of note regarding the final agreement:
* There will be no “early enrollment” in the Obamacare legislation,
which would have cost hundreds of millions of dollars and put control of
our health care programs into the hands of the federal government. As a
compromise, the next governor can choose whether or not to participate
in the early enrollment program.
* The nation-leading General Assistance Medical Care reform passed in
March remains intact, with an additional financial enhancement to help
hospitals provide care. This is a major reform saving taxpayers more
than $700 million. Enhancing the agreement for hospitals preserves the
reform.
* An additional $408 million could come from the federal government
later this year. If that happens, most of the money will fall to the
state’s bottom line This will help the state pay its bills over the
summer and into the fall. It will also help balance the budget in the
next biennium.
* The agreement makes many of Governor Pawlenty’s unallotments from
2009 law. However, these cuts are not permanent. Republicans wanted
permanent cuts to reduce the long-term deficit, but compromised with
Democrats who wanted them to remain one-time reductions.
* Payments to K-12 schools will be delayed under the agreement. BUT,
schools will get the money. This kind of delay has been used 18 times
in state history and it has been paid in full all 18 times.

However, there is not as much structural spending reform as we wanted.
We reached a compromise that makes some long-term reforms but leaves
more to be done, especially with financial experts already projecting
Minnesota to face a $5.6 billion budget shortfall during the next
biennium.

But the good news is the state will not go bankrupt, government will
not shut down, and there will not be a prolonged special session.

As always if you have issues or concerns feel free to call or email. I
can always be reached at home at 651-437-2597. Evening and weekends are
certainly OK. I hope to see you as I will be out throughout the summer
and fall visiting folks at the door. If I miss you just call or email.

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