For more information contact: Sandy Connolly 651-296-8877
Every two years, the State Legislature passes a Capital Investment Bill, approving borrowing for important state and regional projects that protect and improve our infrastructure, our environment and state-owned assets. The House passed its 2008 bonding bill last week, proposing just over $950 million work projects that will create up to 10 thousand new jobs. This year, the Committee identified their three top priorities to be higher education, clean water and transportation. Because of the significant loss of jobs we have seen in our state over the past few months, priority consideration was also given to projects that are "ready to go" so jobs will be created more quickly.
The Senate also passed their bonding bill, appropriating more money than the House, and with different project choices. The bill is now being negotiated by the Capital Investment Conference Committee, a group of Senators and Representatives who are charged with reconciling the differences between the two bills. When they have reached consensus on a fair and balanced package, the bill will be again passed out of both Houses and sent to the Governor for his consideration.
Several projects in our area were appropriated money in the House bill. Riverland Community College is designated to receive $1.5 million for a roof replacement project. Cedar River/Turtle Creek watershed districts will receive Reinvest in Minnesota (RIM) money for projects necessary to prevent floodwater from entering Austin. We are also targeted to receive some Department of Natural Resources dollars for flood mitigation.
I am hopeful the Governor will sign this bill into law shortly after it reaches his desk. At a time when jobs numbers are lagging, it is critical to begin these projects soon so we can take full advantage of the construction season.
Balancing the state budget
This week, the Governor released his proposals for balancing our state budget, which is currently facing a $938 million deficit. It is clear some cuts will need to be made, but it is disheartening to read of the Governor's proposals – especially the ones that hurt our seniors, children and the disabled.
To begin with, the Governor is proposing over $31 million in long-term care 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. These cuts will be especially challenging for nursing homes in Greater Minnesota, many of which are already on the brink of closing.
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.
The Governor's budget proposal includes over $50 million in cuts for higher education. This week, the Minnesota Office of Higher Education released a report indicating that Minnesota state college costs are twice the national average; more cuts will likely widen that gap.
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.
Cutting close to $1 billion from our state budget is a daunting task. Without new revenue, the public will naturally begin to see fewer public services provided. Over the next few weeks, both the House and the Senate will take a look at the state's budget to consider ways to manage the deficit. We must focus on balancing our state budget in a way that is fair, and doesn't hurt our most vulnerable citizens.
Please feel free to contact me if you have any questions about the bonding bill. I can be reached by phone at 1-888-682-3180 or 1-651-296-4193, by mail at 487 State Office Building, 100 Martin Luther King Blvd., St. Paul, MN 55155 or via e-mail at rep.jeanne.poppe@house.mn. If you would like to stay more closely in touch with what is happening at the legislature, visit my website at http://www.house.mn/27B or the House of Representatives website at www.house.mn.