NEWS COLUMN
--State Representative Al Juhnke
rep.al.juhnke@house.mn
281 State Office Building, St. Paul, MN 55155
651/296-6206
3951 Horizon Hills Circle, Willmar, MN 56201
320/235-4442
January 13, 2004
BUDGET DEFICIT CONTINUES TO DOMINATE LEGISLATURE'S AGENDA
Lawmakers return to St. Paul on Monday, Feb. 2, for the second half of the 2003-04 legislative session - and this year as last, the budget deficit looms above all others as the key statewide issue.
For the Willmar region, Sen. Dean Johnson and I will be working on a package of locally oriented economic development proposals, including funding for a new Willmar airport, a new railroad bypass,
re-use of the Willmar Regional Treatment Center and paving of the Glacial Lakes Trail. And I'm also making a push for my bill allowing people to sell homemade pickles and canned vegetables at farmers' markets, roadside stands or in church basements without having to get a state license.
After grappling with a $4.2 billion deficit in Spring 2003, it was dismaying to find that all the cuts, shifts and fee increases didn't actually solve the problem. The Finance Department issued a
forecast in December indicating that a deficit of at least $185 million remains on the books for the current budget period. In truth, the actual deficit is much larger, because the $185 million figure does not include any allowance for inflation. An updated forecast will be issued at the end of February, but no one seriously expects that the deficit will go away - or even shrink very much.
The reason for the continued deficit is the same reason for the big deficit of 2003: An under-performing economy. Minnesota's budget is very sensitive to the economy, because about 80 cents of every $1 the state collects comes from just three taxes: Personal income, sales and corporate income. Of those three, only corporate income taxes have remained steady. Revenues from the individual income tax and sales tax are running more than half a billion dollars less than was expected when the budget was created last spring. That's a direct result of the fact that Minnesota continues to bleed good-paying jobs. People aren't making money, and they aren't spending it.
There is a different dynamic at work this year than in 2003, however. Because we are now in the middle of the budget period, the Governor could single-handedly act to cut spending with his
constitutional unallotment power. If there is no bipartisan agreement on how to cover the deficit - and the track record of the past five years shows how difficult it is to reach consensus - the governor can
use this authority. It puts tremendous power in the hands of a single individual to make decisions about education, health care, senior services and more.
Part of the work on the budget ought to be correcting some of the errors of 2003. We need to do what we can to restore funding for 4H and Extension, for ethanol development, for education, for highway snowplowing and for health care. Certainly it won't be possible to undo the many damaging cuts made in those areas. But we ought to at least discuss ways to lessen the pain or find new means of addressing these needs. I hope a new budget package can refocus our priorities on these key issues.
Other issues will also contend for attention - and a piece of the budget. The challenges for the 2004 session include:
* Figuring out better ways to keep track of released sex offenders and keep the most dangerous ones off the streets. In conjunction, we need to know if Gov. Tim Pawlenty is serious about
pushing for restoration of the death penalty. All of that is going to be expensive.
* Creating a bonding bill for state building projects. The governor has been releasing his recommendations in drips and drops over the past few weeks, but right now we do not know how big his total package will be. It seems that with interest rates still low, with a need to create some jobs through construction projects, and a large backlog of unmet needs for colleges and state facilities, this would be a great year to have a significant package.
* Reviewing the proposed learning standards for social studies and science, as we continue to develop a replacement for the now-repealed "Profiles of Learning." The social studies standards
in particular have been criticized for taking a partisan slant on history - for example, emphasizing the role of recent Republican presidents. The science standards have already begun to provoke an
evolution-vs.-creationism debate as well.
Without a doubt there will be other controversies erupting that we cannot foresee now. In any case, I hope the people of Kandiyohi County and neighboring areas will continue to share their thoughts and opinions with me, as they have in the past. You can reach me at the Capitol at
(651) 296-6206, by e-mail at rep.al.juhnke@house.mn or by mail at 281 State Office Building,
St. Paul, MN 55155.
