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Legislative News and Views - Rep. Paul Anderson (R)

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Gov’s proposal marks starting point for crafting new state budget

Monday, February 2, 2015

 

 

By Rep. Paul Anderson

 

With the release of Governor Dayton’s budget proposal last week, the job of crafting our state’s fiscal course for the next two years officially kicked off. And the question of what’s going to happen to our projected $1 billion surplus was partially answered in the governor’s plan in that he proposes to spend most of it. Overall spending in Dayton’s plan, if fully implemented, would come to around $42 billion for the next two years, which represents an increase of $3 billion from the biennium just completed.

 

At first glance, it appears that education was the recipient of the greatest spending increase in the governor’s plan. Already the single largest outlay in the state’s general fund, education spending would see an increase of about $600 million. However, most of that increase would go into new or expanded programs for early childhood education, while only about $220 million would go toward increasing base funding, the per-pupil amount schools get in state aid. It works out to a 1-percent increase in each of the next two years, which will leave most schools short of even keeping up with inflation. One education lobbyist at the Capitol called the basic formula “the main engine of school funding” and expressed concern with the size of the increase.

 

While it’s laudable to focus on early education as Minnesota works to lower its achievement gap, this may be too big a move to take in one step. The governor’s plan calls for schools to voluntarily offer pre-K classes to 4-year-olds with the state reimbursing schools at a rate of one half the amount of older students. This could also have a major impact on those who work in child care if the 4-year-olds they currently provide care for move directly into the regular school setting.

 

Keep in mind that this is just the starting point in budget negotiations, and both chambers of the Legislature will come up with their own spending plans. I serve on the House K-12 Education Finance Committee and we will work hard to come up with a spending plan that provides a good balance between the new focus on early education and keeping up with inflation in the general formula.

 

Maybe the biggest surprise in the governor’s budget was the lack of any new funding in the area of long-term care. It’s a top priority in the House, being pushed by rural members from outstate areas. Several pieces of legislation pertaining to the topic have already been introduced, with the major bill changing the reimbursement system our state uses to pay nursing homes for the care they provide. It’s expensive, with an initial cost around $200 million. It’s my strong hope that we can pass this bill in some form and get agreement from the executive branch for this badly needed reform.

 

Other interesting pieces taken from Gov. Dayton’s budget call for an increase of $27 million in base funding for the Dept. of Agriculture. Up to 25 new positions would be created, mainly to work in the area of water quality. It also increases the wolf depredation fund, which comes at a good time since the current fund has been depleted and it’s thought more claims will arise, especially since a federal court put the animal back on the endangered list and stopped the wolf hunt in Minnesota. There are also some hefty fee increases called for in Dayton’s plan, which would help fund more inspectors in the food safety area.

 

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