Accessibility menu
State Representative Paul Anderson
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-4317
For more information contact: House GOP Communications 651-296-5520
GUEST COLUMN
First budget reductions pass
By State Rep. Paul Anderson
A flurry of activity took place March 29 in both the House and Senate as the two bodies wrapped up their work before a week-long Passover and Easter recess. No fewer than 100 bills were heard in the Senate, while over in the House, two major bills were debated and passed before adjournment.
The first had to do with reducing the state budget and was the product of a conference committee report. The bill cuts state spending by $312 million and represents about one-third of the reduction needed to pull the state out of its $1 billion deficit. These cuts will come from the “smaller” areas of state spending, such as the Dept. of Agriculture, which absorbed a nearly $7 million cut. Other areas affected by this bill are higher education and public safety, along with various aspects of transportation, commerce, and energy.
Specific cuts in agriculture include less funding for dairy and food inspection, sustainable agriculture, ethanol producer payments, and dairy development grants. Another major area that saw a funding cut was the Board of Animal Health. This board has been instrumental in containing and hopefully stopping the spread of Bovine TB in northwestern Minnesota. Its funding decrease is projected to be just over one-half million dollars over the next three years.
The vote tally was fairly close as the bill passed in the House by a 76-55 margin. Along with most Republicans, I voted against it. In addition, three Democratic finance committee chairmen also voted against the measure.
The other piece of legislation passed was labeled as a “jobs bill” and had strong support from both sides of the aisle. Among its major features is the creation of what’s called an “angel investment credit” that would go to those investing capital in high-risk, start-up companies. Neighboring states including Wisconsin have similar programs and it’s thought Minnesota was losing out on attracting these new high-tech companies. The method used to finance this program was somewhat controversial as it’s coming from the dismantling of a gas tax credit for low- and moderate-income residents. The credit came about when the gas tax was increased two years ago and gives those who qualify a $25 credit. The strange thing is that, to get the credit, one didn’t have to own a car or even buy any gas!
The bill also creates an incentive program called CARZ for the Ford plant in St. Paul. To qualify for state credits, Ford will need to make a $100 million investment in the plant that makes its Ranger pick-up truck.
Other provisions allow local governments to sell revenue bonds to make energy improvements in buildings, including single family homes, or to make them ready for the charging of electric vehicles. The bill also creates a refundable historic structure rehabilitation credit or grant.
The balance of the budget-cutting will take place in the next few weeks. Next up for scrutiny is the area of health and human services, which will be followed by K-12 education. These are the two biggest areas of state spending and another $700 million in cuts must be made. That number could be tempered by any increases in federal money coming to Minnesota.
A looming question mark, however, is the resolution of the Governor’s unalottment case, which is currently before the Minnesota Supreme Court. If what Governor Pawlenty did to balance the budget last summer is ruled unconstitutional, the state would find itself another $2.7 billion in debt. I have not seen a plan yet to remedy that situation.
—30—
Rep. Anderson encourages constituents to contact his 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.
News Items
- Still no budget as session winds down - (Posted: May 10 2013 12:00AM)
- MUCH WORK REMAINS IN SESSION’S WANING WEEKS - (Posted: May 6 2013 12:00AM)
- Results of online survey are telling - (Posted: May 3 2013 12:00AM)
- Archived News Items
- Subscribe to RSS News Feeds
- Read more about RSS.