Legislative session begins Feb. 4
By Janet Kubat Willette
jkubat@agrinews.com
Date Modified: 02/11/2010 8:04 AM
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ST. PAUL — Normally, the even year of the bienneum is a time for legislators to pass a bonding bill and head home to campaign.
But this year, legislators have a full plate of challenges waiting for them when the session begins Feb. 4 in St. Paul.
There's the bonding bill, of course, but legislators must also balance the state's books. The November forecast projected the state will have a $1.2 billion deficit in the current biennuem that must be dealt with before June 30. Some fear that number will grow when the February forecast is released, which is expected to be the first week of March.
DFLer's and Republicans disagree over the size of the bonding bill and what should be tackled first in session. Republicans say the budget should be fixed first, then the bonding bill.
Legislators have to know how much money the state has before they can decide how much to bond for, said Rep. Rod Hamilton, R-Mountain Lake. It's just like families having to know their cash flow before they buy a car. Hamilton is vice chairman of the ag and veterans finance committee and the Republican lead on the ag policy committee.
DFLers take the opposite approach, saying it's important to pass a bonding bill early because it will put people to work.
"Bonding is even more of an urgent matter this year because of the jobs," said Rep. Al Juhnke, DFL-Willmar. Juhnke chairs the House ag, rural economies and veterans affairs finance committee and also serves on the capital investment committee. Getting the bonding bill signed by early March means bids can be let this summer and people can get jobs, Juhnke said.
Republicans tend to favor a smaller bonding bill, somewhere in the $600 million to $800 million range, while DFL'ers favor a larger bill of nearly $1 billion.
Hamilton says the Legislature needs to focus on big picture items and basic infrastructure this year.
Rep. Doug Magnus, R-Slayton, said items in the bonding bill must have statewide or large regional significance.
Juhnke said bridges are an important part of the bonding bill for agriculture, as producers can't move their equipment over outdated bridges. Reinvest In Minnesota funding is also important. Legislators will need to see if the Rural Finance Authority needs more money to make loans.
Then there's the budget deficit, which has grown to 3.7 percent of the state budget since legislators went home in May.
"It's serious and it's something we have to address," Juhnke said.
"That's going to be a signifcant challenge" said Magnus, lead Republican on the House ag finance committee. Depending on the decision in the unallotment case now in the courts, the problem could be worse, he said.
Cuts will have to be made, he said. Even if taxes were raised, it's unlikely the money could be collected in time to fix the deficit.
Hamilton said cuts are inevitable. He sent a survey to his constituents in mid-January, asking them how they would have the state address its budget challenge. He hasn't heard back yet, but in visiting with people he hears that government must live within its means. People are struggling and a number of businesses have closed in his district.
Sen. Jim Vickerman, DFL-Tracy, chairman of the Senate agriclture and veterans committee, said it's going to be hard to make cuts and he's reluctant to touch funding for veterans' programs. Agriclture is such a little part of the budget, still it's very important, he said.
"I'm not afraid to raise revenue," he said.
Juhnke said this year is just the tip of the iceberg. If projections hold, the deficit in January 2011 will be 20 percent to 25 percent of the state budget. That will require reductions, revenues and reforms, he said.
Hamilton asks that the folks from home stay tuned.
"Everybody, be involved, get involved. Make sure you're engaged in this as well, the decisions that we make up here will affect every single one of you," he said.