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State government finance conferees begin their work with fiscal, policy review

The House and Senate are roughly $100 million apart on proposed funding for state government. And there are more than 50 policy provisions where the two sides differ.

The conference committee on the omnibus state government finance bill (HF495/SF888*) met for the first time Friday with an overview of the spending and language provisions each side is bringing to the table. No action was taken and few comments were shared by conferees, who are expected to get back together next week. Rep. Sarah Anderson (R-Plymouth) and Sen. Tom Saxhaug (DFL-Grand Rapids) sponsor the bills.

Gov. Mark Dayton’s state government funding budget calls for nearly $1.04 billion in net General Fund spending during the 2016-17 biennium. The Senate plan checks in at just over $1 billion; the House $902.66 million.

MORE: View the change item spreadsheet

Among the differences, the House plan calls for a 6.5 percent base reduction to the constitutional offices, the Senate does not. The House also reduces most state agency budgets by a small percentage; the Senate generally does not and provides a 1.8 percent compensation adjustment as requested by the governor.

As for legislative funding, the Senate seeks a 3 percent increase in its budget and no House increase; the House calls for a 5 percent reduction in both budgets and calls for one-time carryforward cancellations of approximately $7.23 million from the House, Senate and Legislative Coordinating Commission.

Policy change differences

The House has approximately three-dozen provisions that are not in the Senate bill, including changes to the Metropolitan Council, the self-described “regional policy-making body, planning agency and provider of essential services” for the seven-county Twin Cities metropolitan area.

The bill calls for staggered member terms, including a provision to stagger the terms of current members. Additionally, members would need to be an elected city council member, mayor or county commissioner. The chair would be elected by the other 16 members of the council, rather than appointed by the governor.

Other changes proposed by the House that are not in the Senate bill include:

  • the number of full-time equivalent employees in all executive branch agencies may not exceed 35,927;
  • a limit on agency head salary increases;
  • three of the state’s four ethnic councils would be revamped and renamed as the Minnesota Council on Latino Affairs, Minnesota African Heritage Council and Council on Asian-Pacific Minnesotans;
  • a repeal of the Legislative Water Commission;
  • fiscal, revenue and local impact notes would become the jurisdiction of the Office of the Legislative Auditor;
  • no members of the Metropolitan Sports Facilities Authority would be permitted to receive a salary, but could still get per diem and expense reimbursement;   
  • a healthy eating, here at home program would be established to provide incentives for low-income Minnesotans to use federal Supplemental Nutrition Assistance Program benefits for healthy purchases at Minnesota-based farmers' markets;
  • the Honor and Remember Flag would be designated as a symbol of our state’s concern and commitment to those who have lost their lives while serving in the armed forces.
  • a 15-member Legislative Commission on Surrogacy would be created to develop recommendations on public policy and laws regarding surrogacy; and
  • free rehearsal and storage space must be provided in the Capitol Complex for the Minnesota State Band, which operates as a nonprofit organization with an all-volunteer membership.

MORE: See the side by side of policy changes

The approximately dozen provisions that are in the Senate bill, but not the House proposal, include:

  • grants would be made available to local units of government to reimburse them for salary and benefits paid to public safety employees on authorized military leave;
  • modification of the existing “Mighty Ducks” program for renovation of ice centers with air quality issues;
  • precluding the State Building Code, the State Fire Code or a political subdivision from requiring fire sprinklers or certain other fire extinguishing equipment in any single-family detached dwelling unit; and
  • changes to the Guaranteed Energy-Savings Program that would permit the Department of Administration to enter into an agreement for the installation of utility cost-savings measures that are backed by guarantee of the vendor.

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