Budget balancing bill cuts agriculture by $7 million
By Janet Kubat Willette
jkubat@agrinews.com
Date Modified: 04/15/2010 8:49 AM
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ST. PAUL — Teresa Spaeth was elated with the outcome of the ag budget balancing bill.
The bill cut AURI funding by 3 percent, 47 percent less than Gov. Tim Pawlenty had proposed in his budget balancing strategy.
"That's probably better than we could have imagined," said Spaeth, executive director of the Agricultural Utilization Research Institute.
It was stressful to be faced with a 50 percent cut with no time to plan, she said, and a relief when the governor signed the bill on April 1.
"We do have to make some cuts somewhere," Spaeth said. They will leave two positions vacant and cut back to three statewide renewable energy roundtables per year.
Overall, the agriculture and veteran's department took a $7 million cut over two years, said Rep. Al Juhnke, DFL-Willmar, who chairs the House Agriculture, Rural Economies and Veterans Affairs Finance Division. Veterans funding actually increased $200,000.
"Overall, we were asked to do our part," Juhnke said. "I think we took more than our fair share."
Agriculture funding was cut 7.9 percent, he said. Ethanol producer payments took a one-time reduction of 18 percent and the department of agriculture took a 3 percent to 3.5 percent cut. The ethanol payments will continue, but at a reduced rate, Juhnke said.
The plant pest survey will cease and technology upgrades for meat and food inspectors will be delayed, said Joe Martin, assistant commissioner of the Minnesota Department of Agriculture.
The department has to make a $129,000 reduction in the agricultural marketing service division and the agriculture development and financial assistance division and has to find savings of $262,000 in administration.
Martin said it will be hard to avoid staff reductions, but they are still sorting out the implications of the funding cuts. Staff reductions should be limited, he said.
Likewise, the Minnesota Dairy Initiative is sorting out what the cuts mean to them. The budget bill cuts funding for dairy development by $72,000.
Dairy profitability and enhancement teams won't be able to help as many farmers as in the past, said Jim Salfer, chairman of the Minnesota Dairy Initiative.
It's frustrating that in this time when dairy farmers need more help because of low milk prices that the program is cut, he said.
AURI similarly has more demand for services than they can meet, Spaeth said. It seems like everyone is trying to find a use for co-products and waste products and is drawing upon the expertise of AURI.
Even as this year's legislative session moves forward, AURI, the Minnesota Dairy Initiative and the Department of Agriculture are looking toward next year when across-the-board cuts of 15 percent to 20 percent have been mentioned.
AURI is seeking federal dollars for a New Generation Innovation Center at its locations. The dairy initiative is talking about at what point does it become ineffective. Martin speculates that the Legislature may eliminate general fund programs in agriculture. All the candidates for governor are talking about agency reorganization, he said.
"I don't know how you take anything off the table," Martin said. "I think everything's going to be on the table."
"This is just a test run compared to next year," Juhnke said.
"It will be a daunting task for the new governor, new Legislature," Martin said.