Budget cuts will be painful for all
By Janet Kubat Willette
jkubat@agrinews.com
Date Modified: 03/04/2010 9:24 AM
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ST. PAUL — Gov. Tim Pawlenty's proposed budget takes military and veterans spending, public safety and K-12 funding off the table, leaving the other half of state spending to bear the brunt of the cuts, said Minnesota Agriculture Commissioner Gene Hugoson.
Now, it's wait-and-see what the Legislature does with the proposal.
"All of this is going to depend on what we come to agreement with in the Legislature," Hugoson said.
In the case of the agriculture department, Rep. Al Juhnke, DFL-Willmar, chairman of the House ag finance division, said cuts will mean people and programs.
"We're digging through the couch cushions right now and looking for loose change, that's what we're doing," Juhnke said.
Testimony on the governor's proposed cuts will begin this week.
Rep. Rod Hamilton, R-Mountain Lake, is wondering if the majority in the House and Senate will make the tough decisions and bring forth a budget proposal of their own or if they'll spend the next two months criticizing the governor's proposal.
"We definitely need alternatives so we can evaluate all sides of this issue and so the sooner that the majority can bring their proposals forward, the better off everybody will be," Hamilton said.
Each division will have a bill to balance the budget with painful cuts, said Sen. Tony Lourey, DFL-Kerrick.
The agriculture department cuts include "reassigning staff to dedicated funding sources," eliminating an administrative position, waiting to fill vacant positions, eliminating the plant pest survey and reducing gypsy moth monitoring and inspection.
The budget fix includes a transfer of fees to the general fund. This is not unique to agriculture, rather it's a recommendation to all agencies who collect fees, Hugoson said.
That's really breaking another promise to folks, Lourey said. They were told the fees paid would be used to fund that particular program.
The proposal includes a new fee for MDA's tree care company registry and an extension of the grant period for Agricultural Fertilizer Research and Education Council grants and NextGen Energy grants.
In the case of the NextGen grants, many of the projects haven't progressed on the intended timetable, Hugoson said, and the grant period is extended from June 30, 2010, to June 30, 2011, giving grant recipients more time to complete their projects.
The agency is looking at a 3 percent to 6 percent cut and annual grants are to be cut 6.7 percent. The livestock investment grants announced last week were cut by 6 percent. Other grant funding impacted: County fairs, livestock breeders, agricultural research and education organizations, mental health, farm-to-school and Second Harvest Heartland. The dairy development and profitability enhancement program will also see reduced funding.
The cut will impact funding not yet paid.
Funding for the 10 ethanol plants that receive producer payments will be deferred. The state will honor it's commitment, but it will just take longer, Hugoson said.
Board of Water and Soil Resources
The Board of Water and Soil Resources took a 10.8 percent reduction in funding last session and is now being asked to come up with a 3 percent reduction in its operating budget and a 6 percent reduction in grants passed along to local government units, said executive director John Jaschke.
The cuts will impact wetland protection and assistance to drainage authorities, he said. Its work to respond to flooding events will be impacted.
The board has made cuts in other areas in order to preserve the core grants that go to counties and Soil and Water Conservation Districts. It's important that money be there to leverage farm bill dollars, Jaschke said.
Legislators ask that citizens stay tuned in to the process. Lourey said more community engagement is needed to understand the scope and magnitude of the financial problem facing the state.
Citizens need to decide what they want the government to do and how to fund those systems in a fair and equitable matter.
Hamilton agreed.
"Everybody needs to stay involved … the decisions we make up here will affect every single person in the state of Minnesota, so it's important people stay involved, there is no question about it," he said.
Hamilton said citizens are heeding the call to be involved. He's received several responses to a survey he sent to his constituents before session began. People are hurting, he said, because of high unemployment, wage cuts and freezes and business closures.
"I haven't felt this much involvement since the day I was elected," he said. "People are extremely involved here and the consistent message is enough is enough, we have to prioritize. We have to the proverbial live within our means and you can not continue to come back and ask for more and more and more and expect business as usual. It's just not feasible."
Sen. Steve Dille, R-Dassel, said this year's $1.2 billion deficit may only be the beginning.
"This is probably a long-term problem we're facing," he said. "We're going to have to do some tough things over the next 20 years or so."
Those tough things may include closing college campuses and high schools, and merging cities and counties to create efficiencies. He uses the example of Norwood Young America, which voluntarily merged. He's sure the city is more efficient now.
Online learning may make it easier for students to stay home a day or two a week and for districts to share teachers.
Raising taxes is another option, but Gov. Pawlenty has pledged not to do that. Last year, 30 statest raised taxes to help solve budget problems. Some have also suggested broadening the sales tax to include clothing, Dille said.
"For the governor to say that there are no new taxes being raised is really unfair," said Rep. Andy Welti, DFL-Plainview. The costs of government are being shifted to local property taxpayers.
Be that as it may, reductions will have to be made this session. Welti said legislators don't want to implement the reductions, but they are being forced to because of the recession.
"There's going to be some pain out there," said Rep. Doug Magnus, R-Slayton, because the state faces big budget challenges.
The pain will be felt at schools and local government units. Pawlenty reduces local government aid by $250 million.
Last year, the cuts to the smallest cities were protected, Welti said, but it's becoming clear this year that no cities will be protected.
Also, the $1.7 billion unalloted from schools won't be restored, at least not this session, Juhnke said.
Cuts are a short-term fix. Reform is what's needed, he said. This year's deficit could pale in comparison the 20 percent to 25 percent shortfall some expect in 2011 and 2012.