Legislature adjourns after tackling big deficit

Published 3:31 pm Saturday, May 30, 2009

The 2009 legislative session ended on time on May 18. In the end, Gov. Tim Pawlenty accepted the Legislature’s budget-cutting bills but refused to agree to any new revenue to fill the $6.4 billion budget deficit. That means he will spend the month of June deciding on his own plan to balance the state’s 2010-2011 budget, which takes effect July 1.

I think it’s important to mention that we adjourned on time after one of the most challenging legislative sessions in history.

The $6.4 billion deficit was the largest the state has ever faced. The Legislature recommended state spending cuts that exceeded even the governor’s recommendations, which was a significant step toward cooperative work that we hoped would frame the entire session.

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Unfortunately, the governor didn’t want to work together on finding new, permanent revenue to carry the state into a financially stable future. How he will handle balancing the budget without any new revenue remains to be seen.

Although some outcomes of this legislative session are not beneficial for the state of Minnesota, there were a few bright spots that will provide help to our local area. In the environment and clean water funding bill, the Department of Natural Resources received $655,000 to build fish barriers in Fountain Lake. The Shell Rock River Watershed District will be able to use this money to build the barriers that are intended to keep carp out of the water and maintain a clean environment.

The technical and policy tax bill that was signed into law will improve the benefits our area receives from the wind energy produced in southern Minnesota. Currently, a wind-production tax credit is available in jurisdictions where wind energy is produced with 80 percent of proceeds distributed to the county, 14 percent to the city or township, and 6 percent to the school district. The problem is that the Department of Education views this wind production credit as additional revenue, so they subtract that same amount from the state education sent to our local schools.

The tax bill eliminates the school district allocation from this formula so our schools no longer lose out on a portion of state aid. It makes sure the wind-credit revenue stays local, and it will help provide relief on local property taxes by giving more revenue to our cities, townships, and counties.

The bonding bill that was signed into law provides $40 million for higher education asset preservation and replacement, which could benefit Riverland Community College.

In addition, the bonding bill provides $53.8 million for flood hazard mitigation grants throughout the state, which will help Austin, Albert Lea and other cities work on long-term solutions for flood mitigation.

The bonding bill also includes important language that will allow Albert Lea to reconstruct the shelter and make other improvements at Edgewater Park. This will go a long way toward finishing that project and once again making it a safe, clean place for area families.

Another bill passed this year is a good example of how legislators are able to help citizens with specific issues. I had some constituents from Cedar Valley Services visit my office early in the year. They were interested in passing bill related to non-profit insurance coverage, and with their help, I was able to move the bill through the Legislature this year.

Even though the legislature has adjourned for the year, I will continue to work back here at home and occasionally from my St. Paul office.

If you have any questions or concerns that I am able to help with, please don’t hesitate to contact me. I’m available at sen.dan.sparks@senate.mn; 651-296-9248; or Room 317 State Capitol, St. Paul, MN 55155.