All across Minnesota, people are talking about the $4.5 billion budget deficit facing state government over the next few years. Minnesotans are coming to realize that difficult budget decisions lie ahead, and financially strapped state agencies may no longer be able to offer the same level of service as they have.

With the beginning of a new year and a new administration right around the corner, many people are asking how agriculture may be affected by this budget deficit and the spending cuts that are likely to follow.

For hints at what may lie ahead, we can look at a budget exercise recently conducted by state agencies at the request of the outgoing Ventura Administration. Gov. Ventura asked state agencies to prepare a set of potential budget reductions for the coming fiscal years of 2004 and 2005. Specifically, the administration called for the development of budget options that would allow a 10 percent reduction of expenditures for all funds. Agencies were further instructed to consider program reductions rather than 10 percent cuts across the board. Agencies were also instructed that all salary and rent increases would need to be absorbed within their budgets.

The Minnesota Department of Agriculture (MDA) complied with this request by putting together a set of budget options that would result in a 10 percent reduction in expenditures. In the past, this information would have been embargoed until the governor’s office released it to the Legislature. However, this year, the Ventura Administration is encouraging agencies to share this information with stakeholders in advance.

We have already held briefings with MDA employees and stakeholders. During each one-hour briefing, we have talked about the budget challenge we face and what options may be out there for addressing it. We have sought (and continue to seek) feedback from interested parties on which MDA programs and services should or should not be cut.

So far, the message that has come through loud and clear is that the MDA should place its primary focus on the core functions of the agency. Many of these core functions are mandated in state or federal law, and they fall under the general categories of food safety, economic stimulation and environmental protection. They include specific agency activities such as grocery store inspections, market development efforts and invasive pest monitoring and control. These activities are by no means the only important functions of the MDA, but they are at the heart of our mission and must be given top priority.

It is important to remember that the budget discussions are at a very early stage, and much can change before the final choices are made.

As budget discussions and plans continue to develop, the MDA will look to minimize the harmful impact of budget cuts. We can make no guarantees for any Minnesotan &045; urban or rural &045; that there won’t be some cuts that impact them. However, the economics of the situation are impossible to ignore. Like a family facing a sudden drop in income, this is a time when we all have to be willing to do our part to resolve a problem. It may be inconvenient and at times a bit painful, but this is what we must do so we can keep moving forward toward the better days that are sure to come.

If you would like to provide suggestions or feedback on this issue, you can e-mail us at agbudget@mda.state.mn.us.

Gene Hugoson is commissioner of the Minnesota Department of Agriculture.