In the past two weeks, the Senate and House have worked very long hours to pass all major budget and tax bills. Now that full votes have been taken on those measures, the bills are entering conference committees where designated House and Senate members will negotiate a final compromise between their bills and the Gov. Tim Pawlenty’s recommendations.

This end-of-session process likely will last until the mandated adjournment date, May 18. In that time, there’s much to negotiate – the House, Senate and governor all recommend serious state spending cuts. The Senate’s cuts are the highest at $2.1 billion; the governor recommends $1.4 billion in state spending cuts and the House recommends $700 million in cuts.

All three plans also propose new revenue — the governor’s plan would raise property taxes by about $624 million. The House and Senate’s revenue would come from income tax changes that make the system fairer. Between now and May 18, we must agree on which of those solutions, or which combination, is best for Minnesota.

There are many other issues to agree upon before May 18 as well. I am a member of the Economic Development Conference Committee that will negotiate a very important part of our state’s budget: jobs. The $6.4 billion budget deficit is consuming everyone’s thoughts right now, but one of the underlying reasons we are in such a financial crisis is because this state has not produced enough jobs necessary to stay competitive in recent years. More importantly, the only way we ever will recover from this economic situation and create a successful future for Minnesota is by creating new jobs and investing in economic development opportunities.

The jobs bill that my conference committee will be working on provides new investments in key business and workforce development programs. The bill uses administrative reductions at state agencies to target spending towards job-creating initiatives and job-skills training for Minnesota workers. Notable initiatives funded in the bill include:

 A bioscience business development program to promote and position the state as a global leader in bioscience business activities.

 The creation of the Office of Science and Technology within the Department of Employment and Economic Development, to bring business, academia and government together as partners to research, develop and market new products and services.

Several small business support services, including a statewide small business growth acceleration program.

 Job-skills training for youth, individuals with disabilities, and those facing barriers to employment.

The tax bill that the Senate passed last week also has a heavy emphasis on job-creation. There are at least $247 million in small-business tax incentives and economic development investments that will help existing small businesses and encourage new companies to create new jobs in Minnesota. The bill also conforms to part of the federal stimulus bill recently passed, which allows up to $2,400 in unemployment compensation to be exempted from state income taxes, as well as federal taxes. This will be a huge benefit for the thousands of Minnesotans looking for work right now.

As we continue working toward the need of the legislative session please do not hesitate to contact me with any questions or concerns. I am available at (651) 296-9248; sen.dan.sparks@senate.mn; or Room 317 State Capitol, St. Paul, MN 55155.

Dan Sparks, DFL-Austin, is the state senator for District 27.