Dear Neighbors,
Last Friday marked the midpoint of this year’s legislative session. Policy committees have wrapped up most of their work and the legislature is in recess until Tuesday, April 7th. After the break, the finance committees will assemble their budget bills and most of the action will shift to the floors of the House and Senate.
Budget Proposals
Last week the House, Senate, and the Governor each unveiled budget proposals based on the February budget forecast. The February forecast is the final update that is used to set the next state budget, for July 1, 2015 through June 30, 2017. The forecast estimates how much revenue the state will get and how much will be spent based on current law. As you probably know, the latest forecast says we will bring in almost $2 billion more than we spend if we do not make any adjustments. Most people say that the state “has a surplus,” but we don’t have that money in an account; it is just a projection of what our situation would be two years from now if we made no changes.
Here are the proposals for spending increases and decreases from the forecast:
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Governor
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State Senate
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State House
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E-12 Education
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+ $694 million
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+ $350 million
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+ $157 million
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Higher Education
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+ $288 million
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+ $205 million
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+ $53 million
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Tax reductions
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$138 million
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$460 million
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$ 2.26 billion
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Health Care, Nursing Homes, Disability Services
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+ $341 million
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+ $341 million
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- $1.15 billion
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Environment/Agriculture/Jobs Programs
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+ $82 million
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+ $45 million
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- $35 million
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Transportation
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+ $26 million
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+ $25 million
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+ $148 million
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Public Safety
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+ $147 million
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+ $117 million
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+ $82 million
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State Government/Veterans
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+ $63 million
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+ $52 million
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- $67 million
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Budget Reserve
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+ $0
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+ $250 million
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+ 100 million
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Total Net Spending
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$42.98 billion
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$42.73 billion
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$42.58 billion
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GOP Budget Priorities
This session members of the House GOP have proposed one spending bill after another in Health and Human Services (HHS), totaling at least $900 million just in that area. On the one hand, I am glad to see the GOP members recognize the very real needs of our state. When the GOP controlled the House and Senate in 2011, the motto was “not a penny more” and the result was about $1 billion in cuts to nursing homes, long term care, child protection, and many other areas of health and human services spending. This year there is a general recognition that those cuts did real harm and that there is much we can do to assist the most vulnerable people in our state. The GOP members share the knowledge that many people with health problems or disabilities are still not able to access the services they need, and that people who work with the elderly and disabled still struggle with low pay.
But even with these unmet needs, the HHS budget is large and continues to grow. There are many reasons for that growth, but much of it is because our population is older and needs more help to stay healthy and independent. More Minnesotans live with disabilities and with help, can often live longer and richer lives than ever before; and more people can get the health care they need through our state’s public programs. Also, the health of our growing minority populations has not been adequately addressed.
Despite this growing need, the House GOP is proposing a budget that cuts over $1.1 billion from projected HHS spending, and has $2 billion of tax reductions. GOP members can sponsor bill after bill to improve the lives of Minnesotans who are elderly, young, poor, or disabled, but they can’t have it both ways. A budget is about priorities and their priority is cutting taxes.
Education – Not a GOP Priority
The increase proposed for schools is so small – less than 1% – that many schools will have to balance their budgets by laying off teachers. Moreover, the amount proposed for higher education is only enough to keep tuition frozen at either our university system or our state colleges system – but not both. For almost a decade, we had the fastest rates of increasing tuition in the nation. But even with a $2 billion surplus, the GOP prefers to cut taxes and let tuition rise.
Shifts, tricks, and gimmicks
During the six years I served under Governor Pawlenty he insisted on “no new taxes” but instead raised fees, shifted costs onto local property taxes, used dedicated funds to shore up the general fund, called a cigarette tax a “health impact fee,” and shifted money between accounts so he could pass balanced budgets without “raising taxes.”
In this year’s proposal, I hope we will not see the same kind of GOP budget we saw in 2011 – full of made-up savings that won’t materialize and cuts that will do real harm to real Minnesotans.
At the end of the day we must have a budget that passes the House and Senate, and that the governor will sign. As always, I welcome your questions, comments, and concerns.
Warmly,
Tina