State Representative Al Juhnke
281 State Office Building
100 Constitution Ave., St. Paul, MN 55155
(651) 296-6206
For more information contact: Tom Smalec (651-296-5524)
6/27/2003
Rep. Al Juhnke's Capitol Update - Post-Session Edition
A report from State Representative Al Juhnke - Post-Session 2003
Dear Friends,
The 2003 legislative session has concluded, with a budget that will make some far-reaching changes to Minnesota's future. Please review this brief summary and keep sending me your thoughts and comments. I look forward to chatting with you during the summer.
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
Budget balanced - On back of Rural Minnesota
Virtually every successful effort to lift the economy of Rural Minnesota, create jobs and spur business development has been slashed under budget bills passed in the recent legislative session, according to Rep. Al Juhnke.
'This budget will send Minnesota farther down the road to being a two-economy state,' Juhnke said. 'We might not see the effect for a year or more, but it will come - and it will hit us in our pocketbooks.'
The new budget cuts state support for ethanol by 33%, for the Agricultural Utilization Research Institute by 57%, for the Minnesota Investment Fund by 37% and for Minnesota Technology Inc. by 72%.
'Each of these had a proven record of successful rural economic development,' Juhnke said. 'They encourage home-grown economic development, and were an effective alternative to getting into tax-break giveaway bidding wars.'
While the public might have expected parties to work together in the face of the largest budget deficit in state history, partisanship hit an all-time high, Juhnke noted.
'The Republican leadership and governor refused to discuss any alternatives offered by DFLers in the House and Senate,' he said. 'And contrary to their rhetoric, the deficit was not solved through spending cuts alone.'
Spending reductions are less than half of the solution. The rest comes from fee and tuition hikes, raiding other accounts (including $1 billion from the tobacco lawsuit) and $722 million of accounting shifts and payment delays.
'We are seeing the result of a suburban-run Legislature.' Juhnke said. 'In economic development, in transportation, education, local aid and more, the outer-ring suburbs are calling the tune.'
The Budget Solution:
Spending Cuts: 
$2.25 billion
One-Time Transfers: $1.39 billion
Shifts & Delays: $722 million
Fee Hikes & Other Resources: $296 million
Willmar RTC will keep doors open
Rep. Juhnke and Sen. Dean Johnson successfully passed legislation to help ensure continued use of Willmar's Regional Treatment Center. The proposal provides guidelines to the Department of Human Services as it considers changes to the mental health care safety net.
'This should give comfort to both patients and employees that services will be available and jobs will be provided here,' Juhnke said. 'Hopefully, this will establish a better working relationship among the Legislature, the department and the community.'
Ridgewater makeover approved
A new bonding bill includes $2.88 million to renovate science laboratories at Ridgewater College's campuses in Willmar and Hutchinson. The projects had been passed in 2002, but were vetoed by Gov. Jesse Ventura.
'Ridgewater College badly needs to update its science labs to help it compete for students in its nursing and liberal arts programs,' Juhnke said. 'This is not only an important tool for learning, but also for recruiting.'
Senior, social services slashed
The health and human services budget contains a host of cuts - and a significant tax increase, according to Rep. Juhnke.
The bill cuts $100 million from nursing homes, reduces support for child care by $86 million, and cuts funding 15% for the Senior Companions, Foster Grandparents and Meals on Wheels programs. In addition, it raises the rate of the 'sick tax' on health-care costs from 1.5% to 2%. That tax supports the MinnesotaCare insurance program for working families who lack health benefits.
EDA bill becomes law
Rep. Juhnke's bill giving the City of Willmar and Kandiyohi County the ability to jointly pursue economic development projects was enacted into law. The bill allows the city and county to create a joint Economic Development Authority that would solicit new businesses to come to the region.
Cities, county face state aid cut
Willmar is hit with a state-aid loss of $1 million in the next two years under the GOP-designed local aid bill, according to Rep. Juhnke. City taxpayers will also feel the sting of a $2.7 million cut to Kandiyohi County in 2003, 2004 and 2005.
'Rural Minnesota, where few people saw much benefit from the unsustainable tax cuts that created the deficit, is being asked to shoulder the burden of fixing the problem with higher local property taxes,' Juhnke said.
Aid to Cities 2003 2004 2005
Willmar 4,544,634 3,944,322 4,145,377
Atwater 295,349 259,219 244,452
Blomkest 24,518 20,078 18,852
Kandiyohi 80,894 70,033 78,285
Lake Lillian 54,500 47,225 44,500
New London 237,375 196,225 221,333
Pennock 91,523 74,809 85,514
Prinsburg 107,065 94,516 89,163
Raymond 176,910 167,726 162,546
Spicer 139,718 80,881 127,793
Sunburg 20,951 17,467 20,820
Aid to Kandiyohi County
Base 2003 New 2003 2004 2005
3,040,582 2,334,253 1,788,773 2,221,636
School funding cut $180 million
Willmar schools will lose about $400,000 in revenue in the coming two years as school funding is cut $180 million in the new state budget. 'Losing dollars means losing teachers, which boosts class sizes. It means losing new textbooks or computers. It means not having that little extra help that will lift a kid from being and F student to a C student,' Rep. Juhnke said.
School District Revenue Losses - 2004-05
New London-Spicer $70,853
Belgrade-Brooten-Elrosa $39,946
