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Budget conferees reach agreement on broadband funding

House and Senate conferees negotiating the supplemental budget late Wednesday night approved a compromise on funding for jobs and economic development initiatives.

The two chambers had significant differences on the jobs portion of HF3172 when they began the conference committee. Wednesday’s agreement, which was adopted by the 10-member panel of House and Senate members, would provide $20 million in one-time funding for grants to expand access to broadband in unserved or underserved areas of the state.

The proposal that passed the House floor on April 3, sponsored by Rep. Lyndon Carlson Sr. (DFL-Crystal), would have spent $25 million on the broadband grants. The Senate version, sponsored by Sen. Richard Cohen (DFL-St. Paul), didn’t provide any broadband funding.

Overall, House and Senate leaders have agreed on a $283 million General Fund target for HF3172 that’s subdivided into spending categories ranging from K-12 education to transportation. The funding is available due to the $1.23 billion surplus that was projected in the February economic forecast for the current budget period that ends June 30, 2015.

The approval of the jobs and economic development portion comes after the committee on Tuesday approved spending for higher education, judiciary and public safety, state departments and health and human services. Still remaining for the conference committee to resolve before next Monday’s constitutional adjournment date are agriculture and environment and K-12 education.

The jobs and economic development portion was given a $20 million target and assumes a $10.5 million transfer to the General Fund from the Assigned Risk Plan.

In addition to broadband, the agreement would provide $475,000 in one-time funding to each of six regional initiative foundations for business revolving loans and other lending programs. It would also give $2.2 million in one-time funding to the Greater Minnesota Business Development Public Infrastructure Grant Program at the Department of Employment and Economic Development.

The agreement also has workforce development, tourism and housing appropriations.

 


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