The plan to resolve the state\'s projected biennial budget deficit was approved 115-19 by the House and 56-11 by the Senate. But legislative leaders warned what is discussed a year from now could be much more painful.
The state\'s current biennial budget deficit of about $1 billion — up from the $935 million projected in the February forecast — is going to be resolved by a mix of budget reserves, cuts and shifts.
Co-sponsors Representative Lyndon Carlson, DFL-Crystal, and Senator Richard Cohen, DFL-St. Paul, said the agreement calls for $500 million to be taken from the state\'s $653 million budget reserve and $355 million in cuts are to occur. Another approximately $30 million is to come from accounting shifts. Additionally, $109 million would be raised from closing a tax loophole allowing some foreign-operating corporations to bypass state tax law.
Pawlenty indicated he would sign the bill.
The budget deal includes funding for some bonding projects, such as $70 million for Central Corridor light rail, that Pawlenty vetoed earlier in the session. His veto put the future of federal matching funds in jeopardy. In addition to the Central Corridor project, other items that were funded were $20 million to acquire land for Vermillion State Park, $3.4 million for state building asset preservation, $2 million for the Old Cedar Avenue Bridge and $10.1 million for a new veterans nursing facility.
The budget deal did not include any funding for a Mall of America expansion – a priority of state Building Trades unions – however, the tax bill did include language authorizing public financing through local sales and use taxes in Bloomington.
Legislators did not take further action to increase the minimum wage. Last week, Pawlenty vetoed legislation to increase the minimum to $7.75 an hour; lawmakers had hoped to craft a compromise for inclusion in the budget deal. See related story.
In addition to addressing the projected budget deficit, the measure approved Sunday will provide more aid to local governments and reduce property taxes, legislative leaders said. It also involves significant cuts to health and human service programs.
With its votes Sunday, the Legislature adjourned until the start of the 2009 session. Lawmakers from both parties agree they will face tough decisions next year. Senate Majority Leader Larry Pogemiller, DFL-Minneapolis, said the projected 2010-11 biennial deficit is somewhere between $1 billion and $2 billion.
This article includes information from Session Daily and Senate Briefly, online publications of the Minnesota Legislature, www.leg.state.mn.us
Share
The plan to resolve the state\’s projected biennial budget deficit was approved 115-19 by the House and 56-11 by the Senate. But legislative leaders warned what is discussed a year from now could be much more painful.
The state\’s current biennial budget deficit of about $1 billion — up from the $935 million projected in the February forecast — is going to be resolved by a mix of budget reserves, cuts and shifts.
Co-sponsors Representative Lyndon Carlson, DFL-Crystal, and Senator Richard Cohen, DFL-St. Paul, said the agreement calls for $500 million to be taken from the state\’s $653 million budget reserve and $355 million in cuts are to occur. Another approximately $30 million is to come from accounting shifts. Additionally, $109 million would be raised from closing a tax loophole allowing some foreign-operating corporations to bypass state tax law.
Pawlenty indicated he would sign the bill.
The budget deal includes funding for some bonding projects, such as $70 million for Central Corridor light rail, that Pawlenty vetoed earlier in the session. His veto put the future of federal matching funds in jeopardy. In addition to the Central Corridor project, other items that were funded were $20 million to acquire land for Vermillion State Park, $3.4 million for state building asset preservation, $2 million for the Old Cedar Avenue Bridge and $10.1 million for a new veterans nursing facility.
The budget deal did not include any funding for a Mall of America expansion – a priority of state Building Trades unions – however, the tax bill did include language authorizing public financing through local sales and use taxes in Bloomington.
Legislators did not take further action to increase the minimum wage. Last week, Pawlenty vetoed legislation to increase the minimum to $7.75 an hour; lawmakers had hoped to craft a compromise for inclusion in the budget deal. See related story.
In addition to addressing the projected budget deficit, the measure approved Sunday will provide more aid to local governments and reduce property taxes, legislative leaders said. It also involves significant cuts to health and human service programs.
With its votes Sunday, the Legislature adjourned until the start of the 2009 session. Lawmakers from both parties agree they will face tough decisions next year. Senate Majority Leader Larry Pogemiller, DFL-Minneapolis, said the projected 2010-11 biennial deficit is somewhere between $1 billion and $2 billion.
This article includes information from Session Daily and Senate Briefly, online publications of the Minnesota Legislature, www.leg.state.mn.us