For more information contact: Sandy Connolly 651-296-8877
At the end of February, the State Department of Finance released their budget forecast. As was anticipated, the deficit our state is facing has worsened. As we move into the next biennium, we are looking at a projected $935 million deficit, about three times the deficit that was announced in November. This economic slow-down can be felt through the loss of 26,000 jobs in Minnesota in the last six months of 2007, the foreclosure of hundreds of homes and a worsening credit market. Most of us have already tightened our personal budgets, now it's time for the state to do the same.
Last week, the Governor released his proposals to balance the state budget. I was very disappointed to see that many of his targets remain the same as the last time – nursing homes, seniors, children, veterans, the disabled and middle-income Minnesotans.
To begin with, the Governor is proposing over $31 million in long-term care cuts. He's doing this with a combination of funding cuts to both nursing homes and senior care. There will be no rate increases for any providers in 2008, and the rebasing we passed last session to align nursing home rates to costs will be eliminated. Nursing homes in our state cannot bear another cut, especially those in Greater Minnesota. Many have already been forced to close and these additional cuts could add to that number.
The Governor's budget will also cut health care access for 31,000 people, including 20,000 children. He wants to cut pharmacy rates by 2 percent, which will likely cause some rural pharmacies to discontinue services for public program enrollees, and he wants to freeze enrollment in a state assistance program for people age 18-64 with disabilities. He is also gutting rural transit, which is primarily used by disabled people and hasn't been given a funding increase in years. Faribault has one of the largest groups of working disabled people in the state, and these cuts have the potential to significantly alter their lives.
State funding for higher education will be cut by over $50 million, at the same time a report released by the Minnesota Office of Higher Education reveals that Minnesota state college costs are twice the national average. The Governor wants to implement a $9 million base cut to the Judicial Branch, which has the potential to further limit court hours, increase the backlog of cases, possibly eliminate Conciliation Court and delay the processing of adoption cases. And, during a time of war, he is cutting funding for soldiers with traumatic brain injuries.
So, what is the answer? Our state constitution mandates that we must balance the budget, and I understand there will probably need to be some cuts. However, as I read the Governor's proposals, I looked for fairness, and found none. Our students, seniors, the disabled and veterans shouldn't be asked to absorb another round of budget cuts. Over the next few weeks, House committees will take a long hard look at what cuts we can make that won't be so damaging. Everyone understands the need to tighten our belts, but this tightening should include everyone, not just middle-class working people and our most vulnerable citizens.
The clearest way out of slow economic times is jobs. The recent transportation package we passed will create over 30,000 jobs every year for the next five years. The bonding bill will add another 10,000. In Faribault, we are very fortunate to not just benefit from both of these job-creating bills, but the expansion at the prison as the result of the last three bonding bills I authored is adding another 200, permanent jobs. All of these will offer a significant boost to our local economy.
Finally, we need to look at the past to help us understand how we got to this place. For too many years, we have failed to adequately invest in our schools, health care and transportation systems. As a result, schools are being forced to make cuts, thousands of Minnesotans are without insurance and can't afford to go to the doctor, and our roads and bridges are deteriorating. On top of that, property taxes have increased by 70% statewide to help fill in the funding gaps. If we've learned anything, we should have learned that cuts such as the ones made by this Governor in the past are not the way to protect the future. We have to find a way to move forward without making things worse, and at the same time, work to protect the quality of life in Minnesota we all value.
Please feel free to contact me on this or any other issue. I can be reached at (651) 296-8237, 551 State Office Building, 100 Martin Luther King Blvd., St. Paul, MN 55155 or via e-mail at rep.patti.fritz@house.mn.