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Minnesota House of Representatives

State Representative Andrew Falk

439 State Office BuildingState Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-4228

For more information contact: Sandy Connolly 651-296-8877

Posted: 2009-01-30 00:00:00
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NEWS COLUMN

LEGISLATURE TO TAKE THE GOVERNOR’S BUDGET ON THE ROAD



Dear Friends and Neighbors,
This week, the Governor unveiled his much anticipated plan to balance the state budget. The full scope of what is he recommending will become clearer as the various committees delve more deeply, but a few things are apparent from the start.
First, he appears to be using the same methods this time that he used in the past – methods that contributed to the financial mess we’re in today. The most glaring weakness is that $3.2 billion of his plan to fill a $4.8 billion hole is one - time money. He’s using the federal recovery dollars, a K-12 shift, and borrowing $1 billion against any future revenue stream. These dollars may fill the short-term hole, but at what cost? We can’t solve a future structural deficit with one-time money and expect anything to change. It’s like shoveling future state revenues into the current budget hole, only to leave bigger holes every year out. Unless we want to face a deficit such as this every two years, we need a long-term budget plan, not just a short-term fix.
In addition, his $1.3 billion budget shift for schools will actually end up costing schools an additional 5% over the long run. Districts without adequate cash flow accounts, which is quite often the case with smaller rural schools, will likely have to borrow to meet their obligations. In essence, he is again pushing the state’s budget problems onto the backs of our school districts.
His plan does offer some new funding for schools, but it is tied to performance. This works well for schools with the resources needed for success, but where school budgets are challenged by declining enrollment, unfunded mandates, such as special education, and a low tax base, the Governor’s plan will likely increase the funding disparity that already exists – especially in Greater Minnesota. Our students in rural districts are every bit as capable as those in the metro areas; all we ask is to be treated fairly.
I am also very concerned that the Governor is again cutting services for our most vulnerable citizens – the poor, our seniors and the disabled. His plan will cut the health insurance of 113,000 working Minnesotans, hurt hospitals by reducing their provider rate, and cut what amounts to $66 million from nursing homes. While these methods may address the short-term budget problem, they do nothing to fix things in the future, and in the meantime, ask those who can least afford it to pick up the tab.
Now that the governor has put his budget on the table, DFL members of the House and Senate will take his budget on the road. We will hold hearings throughout all of Minnesota in an effort to be as open and transparent with the citizens as possible. We want the people’s input. We will explain what the governor’s cuts mean for the funding for local units of governments, the school districts, nursing homes, and other programs. We want to know whether or not people agree or disagree with the budget. If there is disagreement, what needs to change? We are looking for all types of input – what should be cut, what should be eliminated, what should be increased, how should we pay for it? These are all legitimate questions and we want to hear the public’s thoughts and opinions. Please continue to contact me with your suggestions and feedback. We are all in this together, and I look forward to hearing from you. You can reach me at 651-296-4228 or by email at rep.andrew.falk@house.mn.

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