January 21, 2003 -- NEWS RELEASE -- State Representative Al Juhnke
281 State Office Building, St. Paul, MN 55155
651/296-6206
3951 Horizon Hills Circle, Willmar, MN 56201
320/235-4442
JUHNKE: ETHANOL CUT SHOWS WHERE GOP PRIORITIES LIE
Minnesota's ethanol industry may not withstand cuts in state aid proposed by Gov. Tim Pawlenty and backed by Republican legislators, Rep. Al Juhnke said today.
"Ethanol has been a success story for Rural Minnesota, but it seems the Administration and GOP lawmakers want to cut the legs out from under it. This could force at least one plant, possibly more, to close," said Juhnke (DFL-Willmar), Lead Democrat on the House Agriculture Finance Committee. "This is a test of priorities for rural Republican legislators. Will they vote their districts - or their party?"
Gov. Pawlenty last week proposed to eliminate all state support for ethanol production - $27 million - as part of his proposal to balance the state's current-year budget. Last week, the
DFL-controlled Senate restored all but $2.3 million of the cut with savings in other areas of the budget. The $2.3 million represents payments to a plant in St. Paul which may be closed. On Tuesday, the Republican-controlled Agriculture Finance Committee of the House of Representatives voted to cut the program by "only" 20 percent - reducing state aid to production plants from 20 to 16 cents a gallon.
"Rural Minnesota won't be exempt from cuts, but the cuts should have balance," Juhnke said. "Ethanol is a homeland security issue - domestic production helps us reduce dependence on foreign oil. Why couldn't the Governor have looked harder for cuts in the
metropolitan area, or inside state government? Where is the balance?"
Gov. Pawlenty asked $44 million in cuts from state agency operations, less than 10% of all the cuts he proposed. The Metropolitan Council was cut $2.6 million - less than 10% of the cut to ethanol.
The "Minnesota Model" for ethanol development has created a billion-dollar industry from nothing in about 15 years, Juhnke added. The state's 14 plants have created more than 1,000 jobs - almost all in Rural Minnesota - and are credited with raising corn prices 3 to 7 cents a bushel.
"The Governor talks about creating jobs and rural economic growth," Juhnke said. "Ethanol has a proven track record of doing that - yet Gov. Pawlenty is attacking it. It just doesn't make
sense."
