Column: Senate fixes budget shortfall
Published 12:00 am Tuesday, March 29, 2005
At the beginning of this legislative session in January, the Senate DFL caucus made a promise to get our work done and get it done fast. We set a goal to pass a number of major bills and lay out a clear plan for the rest of session by this weekend’s mid-term break.
I’m very happy to return home this weekend and be able to tell you we have met that goal. The Senate has passed several big pieces of legislation, including bills to deliver flood aid to Southeast Minnesota and to crack down on methamphetamine use. But perhaps the most significant action came Wednesday, when we approved a plan to eliminate most of the state’s $466 million budget deficit without increasing income or sales taxes.
The budget-balancing bills passed this week are largely based on the Governor’s recommendations for filling the state’s budget shortfall. It cuts spending on most state agencies by 3 percent and relies on a series of tax-law adjustments, but it omits the Governor’s recommended cuts to health care.
The idea to balance the budget first and focus on new spending later isn’t how the legislature typically addresses the state budget, but Senate Democrats believe this is the fiscally responsible thing to do in this time of ongoing budget deficits. The plan can be compared to family finances &045; credit cards and debts must be paid off before a family can decide what money they can put toward future expenses such as a car or house.
Much like a family shaping its budget, the Senate decided to pay off the state’s debt first so that we have a clear idea about what is left over and where we should invest our money. With the budget shortfall erased, we can spend the next two months focusing on how to fund priorities such as education, public safety, health care and transportation.
This seems like a common-sense approach, which is why Senate Democrats made some concessions and worked with the Governor’s proposals to bring this plan forward. Although not a single Republican voted for the budget-balancing bill, we stuck together and passed this legislation in an attempt to move forward with the rest of the session’s work.
In another effort to move forward, the Senate members of the bonding conference committee worked very long hours this week trying to complete the bill before this weekend. The bonding bill funds major construction projects and will add as many as 10,000 jobs throughout the state, so it is important to reach an agreement now so projects can begin once the ground thaws.
The Senate passed a $975 million bonding bill in January and the House passed its $780 million version about a month later. Now the two sides are in conference committee trying to reach a compromise between the two plans. The House and Governor have agreed to an $880 million proposal and the Senate has offered several proposals that meet this spending limit. Unfortunately, every compromise plan has been rejected by the House and Governor.
Even Rep. Dan Dorman (R-Albert Lea), the Republican House chair of the conference committee, admitted Gov. Pawlenty is standing by “rigid”
guidelines of what he will allow to be funded in the bill. That stubbornness and reluctance to compromise is creating a major roadblock in completing this capital investment bill.
There are many theories as to why the House and Governor are holding up this process and I’m not interested in playing that blame game.
I only hope that Rep. Dorman, who to this point has cooperated well with the Democrats on the committee, will remember his commitment to his district and the state and do not what is good for his party, but what is right for Minnesota and pass this bonding bill soon.
The legislature will be going full-speed ahead when it reconvenes on Tuesday and undoubtedly you will be hearing a lot of news from the Capitol in the next two months.
State senator Dan Sparks: If you have any questions or concerns on anything you hear, please do not hesitate to contact me at 651-296-9248; G24 State Capitol, St. Paul, MN 55155; 507-438-2898; or by e-mail at sen.dan.sparks@senate.mn.