House, Senate pass budget bill, but no agreement with governor

After an all-night session, House members voted 82-49 to pass HF3834*/ SF3409. Sponsored by Rep. Lyndon Carlson Sr., DFL-Crystal, and Sen. Richard Cohen, DFL-St. Paul, the bill would resolve the deficit mostly through spending cuts.

In addition to ratifying Pawlenty’s 2009 spending unallotments, it would enact a $1.8 billion K-12 school aid payment shift, which the state would begin to pay back next year. It does not include a $443 million tax increase proffered in a previous budget bill.

Minnesota rally for tax fairness
Members of unions, community organizations and the faith community rallied Thursday night to urge legislators to adopt a fair tax system to address the budget deficit, but changes in tax policy were not part of the bill approved Sunday.

Photo by Michael Kuchta

“This is a major compromise… It moved heavily in the direction of the governor’s request,” Carlson said.

Negotiations over the bill fell apart early Sunday morning over a provision dealing with health care funding. Leaders of the Legislature’s DFL majority wanted the governor and legislative Republicans to accept a Medicaid expansion as part of a compromise. Under the plan, Minnesota would have opted in to an early expansion of Medicaid funding to provide care to people currently covered by the state-run General Assistance Medical Care.

Pawlenty and the Republicans objected to the plan, arguing Minnesota should not rush to embrace “Obamacare.” They proposed instead to use federal funds to move GAMC patients over to MinnesotaCare, another state-run program. DFLers argued that would cause the state to lose much-needed federal funding.

After being passed 46-21 by the Senate, the bill now goes to Pawlenty, who has indicated he may veto it over the health care provision.

Lawmakers have until midnight Sunday to pass bills, and House Majority Leader Tony Sertich, DFL-Chisholm, said lawmakers will work right up until that deadline if necessary to reach a deal with the governor.

Nick Busse writes for Session Daily, the online publication of the Minnesota House, where this article originally appeared.

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