Now that Gov. Tim Pawlenty released his plan to solve a $398 million state budget deficit (he added $3 million to earlier estimates that he says stems from the transportation package put into law over his veto), the DFL-led Legislature can now pick apart the details and craft their own response.
At first blush, however, it appears the Republican governor has presented a plan with a lot of pain, but pain equally spread through all state government does. It's got a few clinkers, but overall it represents some thoughtful policy direction and should be given serious consideration.
One of the clinkers is the governor's call to reduce the state sales tax by an eighth of a percent, most to offset what he calls tax increases through the transportation bill and potentially through an increase for outdoors and arts should voters approve a constitutional amendment this fall. The measure, however, will have no impact on the average consumer, who would get 2 cents back on a $20 purchase. And it won't be easy for merchants, either, as most cash registers only tabulate by quarter percentages.
Pawlenty in his budget fix does provide for increased funding in some key areas:
E It holds K-12 education with no classroom cuts and would add $2.7 million a year for the next three years for math and science teacher training, and $250,000 next year and $500,000 the next biennium for Minnesota Teach, a program to aid mid-career professionals gain teacher certification.
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E Provides transition aid funding for school districts and local governments affected by a new Revenue Department formula that lowers property values of utilities, something that would aid Clearwater and Beltrami counties with pipe-line company property taxes.
E Gives the state Animal Health Board $472,000 more this year and $2.25 million each year for three years for bovine tuberculosis response in Beltrami and Roseau counties.=
E Implements forest industry competitiveness recommendation by the governor's forest products task force with $250,000 next fiscal year and $400,000 in each year of the next biennium.
E Increases funds for ATV trail maintenance, monitoring and enforcement by $300,000 a year for the next three years.
And, of course, we will also need to limit the effect of those reductions that adversely affect our area:
E Making sure, with about 4 percent cuts to each agency, that the newly establishing Minnesota Indian Scholarship Program liaison remains in Bemidji with the Office of Higher Education.
E Many proposed human services cuts need to be studied, among them removing $1.5 million over three years from the Fetal Alcohol Syndrome Prevention Grant Program, reducing Youth Tobacco Prevention grants by $325,000 a year, eliminating $2 million in competitive grants for developing culturally specific treatment programs for chemical depend-ency for American Indian youth (a bill authored by Sen. Mary Olson, DFL-Bemidji), and moving the date for rebasing, or refiguring baseline reimbursement rates, for public assistance clients at inpatient hospitals and for nursing home.
E Corrections Department reductions of $3.1 million a year to reimbursements to counties for housing short-term offenders and across the board to Sentencing to Service could affect two popular programs in Beltrami County that build houses and perform public service work.
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It is key that the governor will also not suggest cuts in local government aid to cities and counties, which should help stave off property tax hikes to make up any difference.
The governor's fix is complex and detailed, with good and bad. We hope the Legislature can sort through the details and end up with a program they and the governor can accept. The groundwork for such an agreement is there.
