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OP/ED COLUMN

State shutdown ends: Part 2

By Rep. Tim O'Driscoll

Here is Part 2 of the budget overview that covers the remaining bills passed by the legislature and signed into law by Gov. Dayton. Part 1 was sent out on Wednesday of this week.

The budget bills that were passed by the Legislature and signed by Gov. Dayton contain some conservative cost saving targets. This means the state of Minnesota could experience better cost saving outcomes than were built into the various budget bills. The gains realized from these cost controls will result from the numerous reform measures, which have been enacted this year. We know today these bills have eliminated 60 percent of the budget shortfall that is forecast for the biennium that will follow the one covered by the bills passed this week. It is possible with these solid cost saving reforms and a gradually improving economy, the deficit outlook could be even better.

One part of the budget I am not particularly thrilled with is the K-12 funding shift, but at least the shift is not as significant as the governor proposed. Furthermore, school administrators will tell you they prefer delayed payment over straight cuts. I am pleased we were able to add $50 per pupil to the funding formula for each year of the biennium.

Central Minnesota will benefit from $40.3 million in bonding money that will allow St. Cloud State University to construct a new science and engineering center. The bonding bill also included money for capital expenditures on bridges and highways, as well as funding for repair and replacement to other state assets. Central Minnesota may well benefit from these bonding dollars as well.

As the United States continues to draft down troops from Iraq and other theaters of operation, Minnesota will see a large number of returning veterans, who will need various reintegration services. This is one of the main reasons that Veterans Services and Military Affairs did not see a decrease in funding, but actually saw an increase in funding in these budget bills.

The final highlight I'd like to share is the results of the Legacy Amendment funding bill. You will recall that a few years ago, Minnesota residents passed a constitutional amendment to dedicated 3/8 of one cent sales tax for parks, trails, waters, etc. The Legacy bill passed this week provides for a larger dedicated pool for funds for greater Minnesota than have been available in the past. Greater Minnesota will not need to compete with Twin Cities Metro projects for funding, as approximately 38 percent of parks and trails monies have been dedicated for Greater Minnesota specifically. The other money is for the DNR and Twin Cities Metro areas.

Here is a closer look at remaining bills and the reforms they have brought forward:

K-12 EDUCATION
? This bill adds $50 to the per pupil formula and stable, equitable funding for schools across the state. We’re also creating new accountability programs and relieving schools of costly mandates.
? Integration funding sunset in 2013; a commission will be convened with legislative and executive appointments to decide how to take the money used in this program and better spend it to improve student performance
? Teacher evaluation – requires local districts and state to develop teacher evaluation plans. 35% of a teacher’s evaluation must be based on annual student growth.
? Principal evaluation
? January 15 negotiated penalty and deadline repeal
? Special education funding at current level, an 9% increase over the biennium
? 2% staff development set aside repealed for two years
? Maintenance on safe schools levy permanently repealed – this provision meant that a school could never reduce the number of counselors that it employed. Created super-tenure for school counselors and support staff
? Small schools revenue for small rural schools – creates equity in the funding formula for school districts with less than 1000 pupils.
? Compensatory pilot grants help suburban large school districts w/ compensatory equity
? Early education scholarships at $4 million (there is no quality rating system) – Scholarships for pre-K will be directed to needy families
? Delinked increases the formula – previously spending more money on the general education formula meant that other categorical aids must increase as well. This allows future legislatures to put money on the formula without having to increase other spending as well.
? Additional funding for literacy - rewards districts based on student growth and proficiency in 3rd grade reading test scores
? 3rd grade reading reforms (does not include grade retention language)
? MMB not allowed to steal from school district reserves for cash flow
? Accelerate payments to charter schools to allow them to get more of their funding in June.

CAPITAL INVESTMENT
A $498 million bonding bill targeted for flood relief, roads, infrastructure and more. Here are some of the project highlights:
? Minnesota colleges and universities: $220.4 million ($42.3 million for the integrated science and engineering laboratory facility at SCSU)
? Minnesota State Academies: $2.2 million
? Natural resources: $103.5 million
? Pollution Control Agency: $7.6 million
? Board of Water and Soil Resources: $22.6 million
? Military affairs: $5.6 million
? Transportation: $55.9 million
? Employment/economic development: $25 million
? Public Facilities Authority: $20 million

ENVIRONMENT
The Environment Finance bill addresses critical issues including aquatic invasive specials and chronic waste disease, as well as provides budget flexibility to maintain Minnesota’s strong tradition of outdoor heritage.
? New law requires review of all water programs to streamline the way we handle water management.
? NPDES permits now required only as directed by federal law. Allow winter grazing on cropland by changing definition of “pasture.”
? Reformed DNR tree nursery sales, to restrict sales to the private sector.

TRANSPORTATION
We put together a fiscally responsible transportation bill focused on preserving current systems and putting the brakes on light rail expansion the state cannot afford to build or operate. This bill improves transit financing and public transparency by requiring transit corridor planners to provide the total cost of proposed transit system, including capital and long-term operating expenses.


LEGACY FUNDING
This money comes from the sales taxes accumulated from the 2008 voter-approved 3/8ths of a cent sales tax increase as outlined in the Clean Water, Land and Legacy Amendment. Here’s an overview:



2012 2013 12-13

Outdoor Heritage Fund:
$86,484.000 $471,000 $86,955

Clean Water:
$90,517,000 $88,912,000 $179,429

Parks and Trails:
$39,676,000 $38,468,000 $78,144

Arts/Cultural Heritage
$52,600,000 $52,714,000 $105,314
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Total:

$269,277,000 $180,565,000 $449,842,000