Significant reform highlights budget pact
Published 8:58 am Tuesday, August 16, 2011
Rich Murray, My Point of View
Minnesota’s unwanted, unneeded and unnecessary shutdown has ended, as Gov. Mark Dayton and legislative leadership have approved a budget that funds state government programs over the next two years.
To no one’s surprise, the final agreement does not include tax increases and forces Minnesota’s general fund — the account which funds state government programs — to live within its means, yet it also includes new one-time revenue.
At the start of the fiscal year, Minnesota was projected to spend $39 billion on state government programs through the general fund. Under our new budget, Minnesota will spend roughly $34 billion from this area — the amount it is expected to collect from taxpayers over the next two years.
Gov. Dayton wanted to permanently spend $35.8 billion from the general fund. As part of the compromise with the governor, more than $1 billion in additional one-time revenue will be spent on government programs by making a school payment shift and selling tobacco bonds.
While we made this concession to the governor, we also received an important one in return: significant government reform.
As I have said many times, the government of tomorrow must look much different than government of today. Our government is going to look much different in the future when the dozens of reform provisions contained in these spending bills begin to make an impact. It’s expected that we will eliminate billions of dollars in projected spending in the future with these reforms, while making government more efficient and improving the delivery of services.
In K-12 education, not only are we increasing funding for our schools over this next budget cycle — including an additional $300,000 for the Albert Lea School District — but we are reforming the education system to make it even more efficient.
In health and human services, the reforms instituted will slash projected spending in this area during the next budget cycle from 22 percent to 4.8 percent. This includes an eventual repeal of the provider tax, which taxes medical procedures, as well as significant welfare reform by restricting the use of Electronic Benefits Transfer cards. We’ve successfully slowed down growth in this area, and these changes will benefit us long term.
While it took far too long to solve our current budget issues, both sides made the right choice by addressing the unsustainable path of state spending in future budgets. There was plenty of give and take between the Legislature and the governor, and while he received the one time money that he wanted, the Legislature was able to receive many of the government program reforms it wanted.
Regardless of how you feel about this budget agreement, this solution is better than no solution and a continued government shutdown. Overall, I’m pleased that thousands of state employees are returning to their jobs and that Minnesota’s government is once again open for business.
Have a question or concern? Constituents in District 27A including communities in Freeborn and Mower counties can write to me at 439 State Office Building, 100 Rev Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155. Or call me at 651-296-8216 or email me at rep.rich.murray@house.mn.
Rich Murray, R-Albert Lea, is the state representative for House District 27A.