Budget resolution update

With the legislative session inching closer to adjournment, members of the House Ways and Means Committee approved an updated House budget resolution May 3.

Committee Chairman Rep. Loren Solberg (DFL-Grand Rapids) successfully amended the resolution, which reflects the House’s overall budget plan, to incorporate spending cuts made in a supplemental budget law signed April 1 by Gov. Tim Pawlenty (HF1671*/ SF3223/CH215).

The amended resolution calls for a total of $994 million in spending cuts, which is an amount identical to the resolution’s previous version; however, several budget targets have been changed to reflect actual reductions now in law. Cuts in the resolution now include:

• $109.9 million for tax aids and credits (previously $105 million);

• $57.1 million for higher education and workforce development (previously $52.6 million);

• $35.4 million for public safety (previously $35.9 million);

• $32.9 million for state government (previously $16.3 million);

• $23.7 million for energy and commerce (previously $49.8 million);

• $23.6 million for environment and natural resources (previously $16.3 million);

• $14.5 million for transportation (previously $5.6 million);

• $7 million for agriculture, rural economies and veterans affairs (previously $6.7 million); and

• $5.8 million for housing and public health (previously $6.5 million).

No changes were made to the House’s budget plan for health and human services (a proposed reduction of $710 million), K-12 education (a proposed reduction of $1 million) and early childhood education (a proposed reduction of $7.5 million).

The resolution includes a $408 million placeholder for federal Medicaid funds that are expected, but have not yet been appropriated by Congress. Rep. Mary Liz Holberg (R-Lakeville) criticized the decision to include the as-yet-unapproved money, arguing it would leave a large portion of the budget dependant on “a hope and a prayer.”

Rep. Thomas Huntley (DFL-Duluth) responded that the money, if appropriated, would not arrive until January 2011 anyway. If Congress fails to approve the funding, the Legislature may have to hold a special session this year or pass budget cuts early in the 2011 regular session, Huntley said.

The changes also reflect budgetary impacts of a new law that makes donations to Haiti relief efforts tax exempt (HF2763/ SF2352*/CH187), and another that provides a package of tax credits designed to stimulate job growth.