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Mar 17 2017 3:43PM

More money for pre-K education, savings are priorities in gov’s revised budget

By Ricky Campbell
Gov. Mark Dayton and Lt. Gov. Tina Smith release their supplemental budget at a March 17 news conference. The governor proposes to spend an additional $100 million on voluntary pre-K programs and keep $200 million in reserve. Photo by Paul Battaglia

After his administration announced late last month a larger-than-expected surplus, Gov. Mark Dayton released his adjusted budget numbers Friday that continues to prioritize pre-kindergarten, but braces for possible changes coming from Washington, D.C.

The governor is building into the two-year $45.8 billion budget proposal he announced in January and Minnesota Management and Budget’s February Budget and Economic Forecast that projected a $1.65 billion surplus — exceeding state economists’ November forecast by $250 million. Where his initial budget, called “An Opportunity Agenda for a Better Minnesota,” focused on early education, transportation and health care, the realigned numbers add emphasis on saving $200 million.

“Uncertainties surrounding the federal budget and its implications” also weighed heavy on the governor’s decision, he said. With the Trump administration releasing drastic cuts across federal government — many that affect state coffers — the governor said there could be “devastating cuts” to Minnesota’s budget.

“We’re not going to be able to make up for everything,” Dayton said.

For the next biennium, Dayton proposes expanding pre-K spending by an addition $100 million, which he said, “would allow more schools to offer that opportunity to students and families across Minnesota.” It brings Dayton’s total proposed increased spending for pre-K up to $175 million.

WATCH Full video of Gov. Dayton's March 17 news conference 

The Pathways to Prosperity, a jobs program run through the Department of Employment and Economic Development would see an additional $10 million bump over the next two years under Dayton’s updated plan.

Lt. Gov. Tina Smith joined the governor on Friday. She highlighted increasing licensing fees on pharmaceutical companies and diverting $42 million into the Opioid Stewardship Program.

Smith also underlined a $3 million, six-month demonstration of extending the Northstar line to St. Cloud, partnering with Amtrak and BNSF. The supplemental budget sets aside $850,000 for a study to update a 2010 version focused on engineering costs and projected ridership.

“I have talked to so many people in St. Cloud who feel strongly that this is an important part of the city’s economic vitality and opportunity,” Smith said.

Other changes include:

  • $15.6 million in “modernizing” pharmacy reimbursements;
  • $10 million for buffer implementation;
  • $2.8 million in revising Supreme Court Appeals panels;
  • $2.8 million to reimburse Roseau for flood mitigation; and
  • $1.5 million to establish “Farmer-Led Councils” for water quality.
 
Related Articles
April 12, 2018
Tax relief focus of House budget targets
March 16, 2018
Dayton’s supplemental budget spends $226 million on MNLARS, school safety, broadband and more
March 5, 2018
Legislature gets its funding back
September 22, 2017
Mediation ends 'abruptly'; legislative funding remains in question
September 8, 2017
Mediation ordered to work out legislative, gubernatorial funding dispute
May 30, 2017
Dayton signs budget bills into law, but showdown with lawmakers continues
May 26, 2017
Weary lawmakers pass final budget bills, wrap 2017 special session
May 24, 2017
With self-imposed deadline gone, Legislature still piecing together budget
May 24, 2017
A hostile start to special session sees two omnibus bills passed before 7 a.m. deadline
May 22, 2017
Midnight — and end of session — nears with most of budget left unfinished
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State projects $329 million budget surplus in latest forecast
By Ricky Campbell

The latest numbers are a $517 million swing from the November forecast

February 28, 2018
November forecast projects red ink for state budget
By Jonathan Avise

The state’s latest economic forecast projects a budget deficit of $188 million for the current two-year biennium, and a $586 million deficit for the 2020-21 biennium

December 5, 2017
Omnibus bills provide framework for the state's biennial budget plan
By Ricky Campbell

The budget process explained — and why it matters

March 29, 2017
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