Budget bill conferees continue work

House and Senate conferees are working out their differences on a bill that would solve roughly one-third of the state’s $994 million projected budget deficit.

Sponsored by Rep. Lyndon Carlson, Sr. (DFL-Crystal) and Sen. Richard Cohen (DFL-St. Paul), HF1671*/  SF3223 would reduce the deficit by as much as $314 million. Members of a conference committee met March 23 to begin ironing out differences between the House and Senate versions of the bill.

The House version, passed 80-51 on March 22, includes $214 million in spending cuts and $98 million in revenue changes (mostly one-time transfers to the General Fund). The Senate version, passed 43-23 the same day, includes $236 million in cuts and $78 million in revenue changes.

Both bills cover a wide range of budget areas, including nearly every area of state spending except K-12 education and health and human services. While overall similar, the bills have differences in several areas. In general, the House version cuts less than the Senate version in many areas, including:

• local aids and credits ($105 million vs. $105.9 million);

• higher education ($46.7 million vs. $48 million);

• public safety ($22.7 million vs. $32.2 million);

• economic development ($7.9 million vs. $8.6 million);

• transportation ($5.7 million vs. $9.5 million);

• agriculture and veterans ($5.7 million vs. $8 million); and

• state government ($5.4 million vs. $9.1 million).

The House cuts more than the Senate in one area: environment and energy ($15.1 million vs. $13.1 million).

Along with the differences in budget cuts, the bills differ in terms of policy language. Side-by-side comparisons of the bills are available on the House’s Web site.

Speaking for Gov. Tim Pawlenty, Minnesota Management & Budget Commissioner Tom Hanson said both bills are “something we can work with.” Pawlenty has called for deeper cuts to local aids and credits, and also wants $200 million for the state’s cash flow account.

Cohen, who co-chairs the committee with Carlson, said he expects the conference report to be finished by March 29, with the goal of having the House and Senate vote on it before the Passover/Easter break.