February 7, 2003 -- State Representative Al Juhnke -- NEWS RELEASE
281 State Office Building, St. Paul, MN 55155
651/296-6206
3951 Horizon Hills Circle, Willmar, MN 56201
320/235-4442
February 7, 2003
JUHNKE: RURAL AREAS TARGETED BY PAWLENTY AGAIN
Gov. Tim Pawlenty again targeted Rural Minnesota to bear the brunt of budget cuts in the "unallotment" plan he unveiled Friday morning, according to Willmar's Rep. Al Juhnke.
"As before, the Governor is going after ethanol, he's going after soil and water conservation, he's going after the Agricultural Utilization Research Institute and he's going after county fair money,"
Juhnke said. "The long-term prospects for rural economic development will be irreparably damaged by this. What company would partner with a state that backs out of its commitments?"
The Governor's cuts are not subject to legislative review. Under the state constitution, he has unilateral power to cancel spending in the face of a budget shortfall. The Governor's cuts cover the
anticipated $356 million shortage in the budget period ending June 30, 2003. The unallotment power has not been used by a Governor since the early 1980s.
Gov. Pawlenty left $6 million in the ethanol support account, cutting $21 million from the program. His initial budget proposal wiped out the entire $27 million total.
"I don't know if that makes any difference," Juhnke said. "It's possibly going to put some of the plants out of business - and leave thousands of farmer-investors, rural businesses and rural banks hanging. He's not just cutting ethanol - he's hitting a big slice of the entire rural economy."
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.
"In the State of the State Address on Thursday, the Governor said he was tired of supporting the economies of Wisconsin and South Dakota," Juhnke noted. "By gutting the Minnesota ethanol industry, the Governor has chosen to support the economies of Illinois, Iowa and Nebraska instead."
