Legislature protects ag mission, but faces huge budget hole
By Janet Kubat Willette
jkubat@agrinews.com
Date Modified: 06/10/2010 2:42 PM
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Overall, agriculture fared well in the recently completed legislative session, but it's hold on to your caps for next year.
"We understand because of the budget situation cuts were needed and everybody needed to be at the table so to speak," said Minnesota Farm Bureau public policy director Chris Radatz.
But the core mission of the Minnesota Department of Agriculture — food safety, animal health and safety and environmental protection— should be preserved.
The real problem comes next year when legislators and the governor will need to solve a budget hole estimated at $5 billion, Radatz said. It will be impossible to totally cut their way out or to raise revenue to fill the gap.
Farm Bureau has been opposed to tax increases, but over the summer they will discuss the issue with members.
"I don't think a lot of folks realize the real difficult position the state of Minnesota is in financially," Radatz said.
"We've used every Band Aid that's in the medicine cabinet to patch a budget together … I don't know how many Band Aids are left in the cupboard," he said.
Those Band Aids resulted in a deep cut for the University of Minnesota, which Thom Petersen worries will translate into cuts in 4-H, Extension and agricultural research. Petersen is government relations director for Minnesota Farmers Union.
Another concern is rising property taxes. Local government aid cuts are shifting costs from the state to local property taxpayers, Petersen said.
He wonders if counties will be able to continue to pay for Extension and 4-H work in their counties or if other counties will follow Washington County and drop their Extension and 4-H funding.
Property taxes will be the topic of a working group established by the Legislature this year, Radatz said. Agricultural property is the only general class of property that has increased in value in the past couple years, which results in more local property taxes coming from agricultural land. Agricultural land also makes up a larger portion of the tax base the further one travels from the regional centers and the metropolitan area. In rural areas, it's ag land and residential and residential has been dropping in value. The property tax system was designed years ago when a lot of people lived on 160 acres, he said.
Local government officials, legislators and one representative appointed jointly by Minnesota Farm Bureau and Minnesota Farmers Union will serve on the property tax working group. The group is to prepare a report for the Legislature by Feb. 1, 2012.
The ag omnibus bill contains several things, including language that allows the council of any city and the board of any town to spend money for Extension. The bill was introduced by Rep. Julie Bunn, DFL-Lake Elmo, and Sen. Kathy Saltzman, DFL-Woodbury, after finding out that cities and towns were prohibited from supporting Extension.
The bill classifies horses as livestock, establishes a temporary livestock production lien and extends a wind easement deadline.
Read more about what happened at the Legislature in next week's Agri News.