Rep.

Tuesday, April 09, 2002

Rep. Dan Dorman, R-Albert Lea, warned Monday that the Senate budget proposal would be costly to school districts across the state.

The Senate plan includes an additional cigarette tax of 30 cents per pack starting May 1, and another 30 cents starting Jan. 1, 2003. The proposal also would to borrow money from school districts to balance a $440 million budget deficit projected for fiscal years 2002 to 2003.

&uot;The Senate budget proposal relies on an accounting shift in school funding, delaying state payments to school districts from this fiscal year to the next,&uot; Dorman said. &uot;This will force many school districts to engage in short-term borrowing to balance their budgets and take money away from our schools.&uot;

According to Dorman, a similar accounting shift was enacted in early 1990s, but it took years for the legislature to undo the legislation. &uot;The accounting gimmick being proposed by the Senate DFL would have to be paid back taking money away from programs like education,&uot; Dorman said.

The House proposal consists of appropriating $310 million from the state’s tobacco endowment reserves and reducing $100 million in spending without increasing taxes. Funding for local schools and nursing homes will be intact, while spending on other human services programs such as general assistance medical care will be cut.

Both houses will try to reach an agreement by the end of this week. However, the differences are still huge. House Speaker Steve Sviggum, R-Kenyon, suggested on Monday that the legislature would not adjourn until May, after the DFL convention in St. Paul.