State Representative Al Juhnke
281 State Office Building
100 Constitution Ave., St. Paul, MN 55155
(651) 296-6206
March 5, 2003 -- NEWS RELEASE -- Rep. Al Juhnke's Capitol Update for March
Capitol Update -- A report from State Representative Al Juhnke
March 2003
Dear Friends,
With a new economic and budget forecast in hand, lawmakers will spend March getting to work on balancing the state budget for 2004-05. Please review this brief report and be sure to keep in touch as the Legislature tackles critical decisions.
Warmest Regards,
Al Juhnke
How to reach Al Juhnke
Capitol: 281 State Office Bldg., St. Paul, MN 55155; (651) 296-6206
Home: 3951 Horizon Hills Circle, Willmar, MN 56201; (320) 235-4442
E-Mail: rep.al.juhnke@house.mn
Web: www.house.mn/13b
Rural MN takes hit in Pawlenty budget
With cuts to ethanol, education, and nursing homes and proposals that will boost city and county property taxes, Gov. Tim Pawlenty's budget proposal lacks fairness and balance, Rep. Al Juhnke said.
'The Governor is targeting things that help Rural Minnesota the most,' Juhnke said. 'The burden and pain are not shared equally.'
Among the most objectionable cuts, Juhnke said, were:
* A 50% slash in ethanol funding, reducing producer payments from 20 cents a gallon to 10 cents. That will erase most or all of the profit margin for many plants.
* A 4% cut in nursing home reimbursements, which could be the death knell for many rural facilities. Nursing homes will also lose a federal match on the state funding, resulting in a total revenue loss of $135 million.
* A 26% cut in Local Government Aid to cities that leaves many cities with few options other than raising taxes or reducing basic services like police and fire protection.
* Cuts totaling $200 million to programs serving frail elderly Minnesotans - including senior meals programs, Senior Companions, Foster Grandparents and home-care nurses.
* $295 million of cuts to local schools and $358 million of cuts to colleges and universities.
* A $14 million direct cut in aid to rural hospitals and clinics - and a plan to shift $208 million worth of medical care for the poor off the state budget onto local hospitals.
The Governor's Budget Cuts
Revenue Lost to Area Schools, 2004-05
Willmar -$703,000
New London-Spicer -$179,000
Atwater-Cosmos-GC -$163,000
K-M-Sunburg -$155,000
Cuts to Higher Education
Ridgewater College -$1.56 million
MN West College -$1.29 million
Aid Lost to Local Government, 2004-05
Kandiyohi County -$1.92 million
Willmar -$2.04 million
Atwater -$113,000
Blomkest -$14,000
Kandiyohi -$33,000
Lake Lillian -$23,000
New London -$140,000
Pennock -$77,000
Prinsburg -$39,000
Raymond -$29,000
Regal -$1,400
Spicer -$176,000
Sunburg -$10,800
DHS will create plan to re-use RTC facilities
Top Department of Human Services officials agreed to come up with a plan for future use of facilities at the Willmar Regional Treatment Center by April 29 after a meeting with Rep. Juhnke and Sen. Dean Johnson.
'This is a major development,' Juhnke said. 'It means that the department will work with our community and other state agencies to make sure we don't end up with a big white elephant - and that many of the people currently working there would have a prospect of continued employment.'
The Pawlenty Administration last month proposed to close most mental health programs at the state hospitals in Willmar, Ah-Gwah-Ching and Fergus Falls and move residents to community-based programs. Since then, Johnson and Juhnke have been talking to the Corrections Department and Veterans Home Board about potential re-use of the Willmar RTC facilities.
If the Governor's budget proposal is approved, most mental health programs would move out of the Willmar RTC by January 2005. Financially self-supporting 'enterprise' programs, like chemical dependency treatment, would continue to use the facility.
Budget red ink keeps rising
A weaker outlook for Minnesota's economy has reduced revenues for both the current state budget period and upcoming 2004-05 biennium, according to a report from the Finance Department on Feb. 28.
Despite the Governor's use of his unallotment powers to eliminate a $356 million deficit in the current budget, the weak economy reduced state income even further - leaving an $11 million gap even after the budget cuts.
The budget outlook for 2004-05 also grew more bleak since the last forecast in November: Revenues are projected $150 million below November's forecast, while spending is down $136 million - adding $14 million to the $4.2 billion budget shortfall for 2004-05.
Juhnke backs privacy package
Rep. Juhnke has co-authored a package of seven bills designed to protect the privacy of consumers' personal financial information and crack down on identity theft.
'If we don't take steps today to protect consumer privacy, not only will consumers suffer but it could derail the growth of internet-based commerce,' Juhnke said.
The highlight of the package is a pair of measures that require banks and telephone companies to obtain consumer authorization before disclosing personal financial information or information about a subscribers' calling habits to a third party. Other bills will:
* Make theft of financial material from the mail a state crime, giving prosecutors more flexibility.
* Toughen sentences by requiring judges to consider 'misuse of a position of trust' on theft or fraud charges.
* Prohibit printing full credit card numbers on receipts.
* Restrict the use of Social Security numbers on material passing through the mail or over the Internet.
* Prohibit colleges from selling the names of their students to a credit-card issuer, or entering into any agreement to market credit cards to their students.
Parents: Claim education tax break
With income-tax filing season under way, Rep. Juhnke is reminding parents that Minnesota provides a pair of tax breaks to help reduce the cost of education:
* The Education CREDIT, which returns 75 cents for every dollar spent for a qualifying expense. This is available to parents with incomes of less than $37,500.
* The Education SUBTRACTION, which reduces the income on which your tax is calculated on a dollar-for-dollar basis up to $2,500 per child. This is available to all parents, regardless of income.
For information, call the Revenue Department at (651) 296-3781 or visit the department's website at www.taxes.state.mn.us/individ/factshts/individ.html.
