Monday is the constitutionally mandated date for the Legislature to adjourn the 2009 session and finalize a budget for the biennium that will begin July 1. The Senate and House have been working very long hours this month, passing budget bills to the Governor that make significant spending cuts in order to solve the $6.4 billion deficit.

This past week, the Legislature passed every major budget bill to Gov. Tim Pawleenty for his approval. As of the time I am writing this, he has yet to take action on most of those bills. We are very hopeful that he accepts our compromise plans — we negotiated these bills with the Governor’s Office, and we actually cut more from state spending than even the governor’s original budget recommended. The bills we passed are focused on reforming government, cutting spending, and maintaining the priorities most important to our state.

Two of the bills passed last week hold particular importance for our area. The bonding bill authorizes about $299 million in general obligation bonds to help get shovel-ready public projects up and running across the state. This is a key package that will help invigorate Minnesota’s economy and put people back to work.

Within that bill, there is $40 million set aside for higher education asset preservation and replacement. Riverland Community College has been a benefactor of these funds in the past, and they again stand to receive a portion of the total allocation this year for projects they need to pursue on their campuses.

In addition, the bonding bill provides $53.8 million for flood hazard mitigation grants throughout the state. Our region is eligible to be awarded some of these funds as well — and important piece to continuing our flood mitigation efforts. The bill also includes 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.

The tax conference committee passed a mainly policy-focused tax bill to the governor this week as well. We processed the more non-controversial items that are needed to keep the state running so that the remainder of this week can focus on the larger revenue decisions that must be made. That bill included a provision that will help our area benefit more equitably from the wind production taking place in area communities.

A wind-production tax credit is available in jurisdictions where wind energy is produced. Under current law, 80 percent of proceeds from wind production are distributed to the county in which the wind turbine is located, 14 percent to the city or county, and 6 percent to the school district. This formula isn’t as beneficial as it could be. 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. Essentially, our school districts are breaking even instead of being able to gain from supporting the green energy that benefits the entire state.

The tax bill passed last week eliminates the school district allocation from this formula so our schools no longer lose out on a portion of state aid. Instead, 80 percent of the wind energy production credit now will be allocated to counties, and 20 percent will be given to cities. Although I am frustrated that we were not able to find a solution that helped our schools to a higher degree, I think this is a good compromise for now. 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 Legislature plans on working through the weekend to finalize the remaining budget issues. This past week was focused on compromise in order to process the major budget bills. We hope to continue this spirit of cooperation as we work toward the final solution that will fill in the remaining needed pieces to fill the $6.4 billion budget gap.

If you have any questions or suggestions on this process, please contact me 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.