For more information contact: House GOP Communications 651-296-5520
By State Rep. Paul Anderson
Things should start to pick up here in St. Paul now that the governor has released his budget proposal. It seemed as if all were waiting for him to make the first move in what surely will be a battle over ideology; that is, should the deficit be remedied by budget cuts or by spending increases.
Governor Pawlenty’s proposal, in a nutshell, is to cut spending in some areas, increase in a few, hold the line in others, and lower business taxes in an effort to attract new jobs.
It was good to see that nursing homes were protected from cuts in the budget. K-12 Education was also spared. In fact, the governor proposed increases in funding by nearly 2 percent for the general education formula, and another 5 percent by making Q-Comp available statewide.
Education figures to be a hotly contested item. The Democrats have proposed what they call the New Minnesota Miracle, and it’s been endorsed by several groups. Although funding for the plan will be an issue, this is one of those subjects that will be debated long and hard.
Another issue that certainly hits home here in rural Minnesota is Local Government Aid (LGA). Our towns and cities, especially, will be hit with cuts that represent a large portion of their over-all budget. For example, in Glenwood LGA made up 38 percent of the budget in 2008. In Melrose, it was approximately 40 percent.
Our counties will also be hit with LGA cuts, although that type of aid usually represents a smaller proportion of their budgets. According to figures from the Department of Revenue, Stearns County will lose $1.1 million this year and Pope County $105,000. Kandiyohi County stands to lose approximately $422,000.
There are good points in this proposal, and some areas that will be cut more than others. The biggest single positive aspect is that the deficit would be taken care of with no tax increases.
Keep in mind that the governor’s budget is a starting point for discussion. I might not agree with every single item he proposed, but we’ll work through those differences and come out with something that works for Minnesota.
Two bills pertaining to Green Acres were passed out of the House Veterans and Ag. Finance Committee Jan. 27. One calls for a total repeal of the changes made last session, while the other makes major changes in the bill.
Nearly every farm group favors the total repeal bill, but I don’t think that sits well with some on the Tax Committee. They see this as a tax-fairness issue and don’t want non-farm land (or what they call non-productive land) to be eligible for the tax deferment that Green Acres allows. All the major farm organizations favor the repeal bill. The two bills will now be heard before the Environmental Policy Committee and the Tax Committee.
Toured the DNR headquarters building in downtown St. Paul last week. We were told the State of Minnesota does not own the building. They pay rent – around $2.5 million a year – to the building’s owner, The Bank of China.
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Rep. Anderson encourages constituents to contact his new office with input regarding any state legislative issue. He can be reached on the web at www.house.mn/13A and via email at rep.paul.anderson@house.mn. To contact Anderson by phone, call (651) 296-4317. Mail can be sent to Rep. Paul Anderson, 239 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, Minnesota 55155.