Dear Neighbor,
The Ways & Means Committee, which I chair, is the final stop for bills that raise or spend money before going to the House floor. This was a busy week as we processed the eight bills that finance most of state government on their way to the House floor.
A number of measures I have authored and/or advocated for that affect the Saint Cloud area are included in these omnibus bills. Here are some of note:
- Cold Spring water: Puts Cold Spring Brewing and the City of Cold Spring on a track to resolving their water problems caused by the trout stream that runs through town.
- District 742 early education pilot program: Provides $430,000 in funding for St. Cloud District 742 to be used for creating morning and afternoon preschool sections, consisting of low-income students and English language learners at three elementary schools.
- Additional funds for District 742 (estimated to be $500,000) to help low performing students through the Tony Sanneh Foundation founded by Saint Paul native and retired professional soccer player Tony Sanneh.
- Child care reimbursement: Increases child care reimbursement when a city has more than one county. This equalizes the currently different child care reimbursement rates in the three counties in which St. Cloud is located.
- Funeral homes: Allows funeral homes with branches that don't have preparation rooms on site to stay open. Without this bill, such funeral homes (like the Daniel Funeral Home in Saint Joseph) will be required to close by June 30, 2017 or add a prep room at a potential cost of $100,000 or more. This issue affects small towns throughout the state
- Centers for Independent Living: Provides additional funding for Centers for Independent Living, which helps handicapped people live independently.
- Services to the Blind: Provides additional funding for Services to the Blind, which helps older adults becoming blind stay in their homes.
I mentioned in my last update that both the governor and the House had unveiled a supplemental budget package and that we were waiting on the Senate. These discussion are framed by a $900 million state budget surplus.
The Senate has now put its plan on the table and it includes $600 million in new spending. The governor proposes approximately $700 million in new spending. The House is taking a different approach, because Minnesota operates on a two-year budget, and we allocated funds to operate state government last year through June 30, 2017. Instead, we are not proposing any net new spending for the eight major state budget bills, though in some cases we are allocating slightly more money to some areas while trimming in some others so new spending nets out at zero. Here are a few highlights:
- K-12 Education: Approximately $52 million of additional K-12 spending is offset by allowing certain school districts with loans from the state the option of early state loan repayment (a reform requested by schools). $7 million of those savings will go toward expanding broadband internet access for schools and students in underserved areas of the state.
- Environment: Additional funding was included, as requested by the Governor, to uphold decisions regarding copper and nickel mining by Polymet in Northeastern Minnesota
- Jobs and Energy: Included $13 million in 2017 and $15 million in 2018 toward Minnesota’s Border-to-Border Broadband Development Grant Program, mostly offset by reductions in other areas
- Public Safety: Included language to have the state enter into negotiations to purchase the Appleton Prison to potentially provide additional beds for anticipated growth in the state prison population. The language would require the state to purchase the prison and state workers to run it.
- State Government Finance Committee: Reduction of $9.5 million, primarily through increased efficiency in operation of state government.
The House leaves approximately $900 million available to be split between transportation and tax relief. It also provides for about $600 million in bonding (borrowing) in addition to the $180 million of bonding last year, though after negotiation with the Senate and Governor that number will almost surely increase.
This coming week should see the passage of the omnibus finance bills on the floor, and after that I would expect the serious negotiation between the House, Senate, and Governor to begin so we can finish off the session by our May 23 constitutionally mandated date for adjournment.
Sincerely,
Jim