Greetings from the Capitol!
It has been another busy week at the Capitol and things will only intensify as we make our way through the last six weeks or so remaining until adjournment. Budget bills continue making their way through the process and the Vikings stadium subject came to the forefront this week. Here is a rundown:
HEALTH AND HUMAN SERVICES FUNDING REDUCED
Recently, the Minnesota House Democratic majority unveiled its budget targets for the next two years. The proposal would spend more than $39 billion on state government programs – nearly $4 billion more than what’s being spent in our current budget – and contains a $2.4 billion increase in state taxes.
What is most surprising about the proposed budget is that while Democrats are proposing to raise taxes by billions of dollars, they are also proposing to cut the Health and Human Services budget by $150 million. This is the area of our budget that pays for medical assistance programs, disability services, nursing homes and long term care facilities.
While there is always room for efficiencies and cost-saving measures, this area of funding should be a top priority. It simply does not make sense to raise revenue so significantly and yet cut funding in this critical area. It will be interesting to see the proposed budget in its entirety so we can find out where funding for health and human services is being spent.
VIKINGS STADIUM FUNDING IN QUESTION
Electronic pulltabs are being implemented in Minnesota as the key money-maker to support the state’s contribution to the construction of a new Vikings stadium. Revenue has fallen approximately 95 percent short of projections that were provided to the Legislature as the proposal was considered.
The state’s portion of the stadium bonds is $348 million. If e-pulltabs fail to generate sufficient revenue, the expectation is that other General Fund money will be used to pay the bonds. A committee has been meeting to decide whether new action is necessary to protect our General Fund. Legislators are working to determine why the projections we received last year are proving to be so unreliable.
So far, Gov. Mark Dayton has said honest mistakes were made in creating estimates. Others are trying to determine whether there is more to this story. Right now, we have far more questions than answers. I will keep you in the loop as these and other issues develop.
Have a good weekend!
Tara