Jobs and housing

Gov. Tim Pawlenty will have the choice to sign off on an economic development funding package that would dash — for now, at least — St. Paul’s hopes of building a new ice arena downtown.

The bill, HF2088, represents the Legislature’s second attempt at funding jobs, housing and cultural heritage programs for the 2010-11 biennium. The House passed it 86-43 on May 8 after the Senate passed it 47-13 earlier in the day. It now awaits gubernatorial action.

Pawlenty vetoed the first funding bill, SF2081, over a provision that would have forgiven the bulk of a state loan to St. Paul for construction of the Xcel Energy Center. In a statement, the governor said he objected to the provision that would have allowed the city to move forward on a proposed new indoor ice arena across the street from the Xcel, on the basis that St. Paul “should not threaten to reduce police and fire services while requesting that a loan be forgiven in order to build an ice rink.”

Rep. Tom Rukavina (DFL-Virginia), who sponsors the new bill with Sen. David Tomassoni (DFL-Chisholm), said the new funding package is identical to the first, with the exception of the loan forgiveness and two other minor provisions.

Overall, the bill would cut funding for several agencies and programs, including:

• 16.6 percent to the Board of the Arts;

• 6.2 percent to the Minnesota Historical Society;

• 3.9 percent to the Department of Employment and Economic Development;

• 3.5 percent for Housing Finance Agency programs; and

• 3.5 percent to Explore Minnesota Tourism.

The bill would prevent deeper cuts to job programs by temporarily increasing a fee paid by employers into the state’s workforce development fund. The fee hike would raise $15.5 million over the next biennium.

The bill also includes a number of proposed policy changes, including: establishing ice hockey as the official state sport; strengthening prevailing wage enforcement; requiring public employers to purchase uniforms and equipment made in the United States; and establishing an Economic Development Strategy Working Group.