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State Representative Kim Norton

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Posted: 2008-04-04 00:00:00
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Press/News Releases

HOUSE PASSES BUDGET FIX


ST. PAUL – The Minnesota House of Representatives passed its supplemental budget bill (HF 1812) late last night, balancing a $935 million deficit. A cooling Minnesota economy has brought in lower tax revenues, resulting in Minnesota's current budget situation. The Ho use budget fix uses a number of cuts, the closing of corporate tax loopholes, and a portion of the state's budget reserves and cash flow account to eliminate the deficit. The bill passed by a vote of 83 to 49.

"Balancing a budget deficit of this magnitude takes responsible fiscal leadership and the ability to make difficult decisions," said Rep. Kim Norton (DFL – Rochester) who voted in favor of the bill. "We in the House have approached this process with a level head and a commitment to maintaining fairness – producing a budget fix that protects Minnesota's students and most vulnerable citizens."

At a time when schools across Minnesota are struggling for lack of funding, HF 1812 directs $49 million in additional funding to K-12 schools statewide in 2009. Every school district in the state would benefit from a $51 increase per pupil, with the option of another $51 per student in a one-time shift from each district's capital fund. Because of this initiative, Rochester School District #535 stands to gain an additional $940,234 in 2009 to fund basic school operations.

"Budget cuts have to be made in some areas," said Norton. "But the quality of education in Minnesota should not be compromised. We can't balance this budget on the backs of our students."

House lawmakers also maintained their commitment to providing adequate resources for Minnesota nursing homes. The bill provides a 2 percent cost of living adjustment (COLA) increase for every nursing home in the state. Governor Pawlenty's budget proposal called for $32 million in cuts for long-term care providers statewide.

"Nursing homes all over Minnesota are struggling with serious financial problems," said Norton. "After years of budget cuts and funding freezes, many of these long-term care providers are at risk of closing their doors. We simply can't let that happen; we must look out for our elderly and vulnerable citizens who depend on these essential services daily. This bill does that."

The State Senate passed its budget-balancing bill today. There are differences between the House and Senate proposals that will be worked out in conference committee and negotiations with Governor Pawlenty in the coming days. The bill must then be re-passed and signed by the governor.

"The bill we passed today finds many areas of common agreement with Governor Pawlenty," said Norton. "But we can't negotiate with the health and well being of our seniors, students, and most vulnerable Minnesotans."

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