Added on Feb. 12, 2003
Capitol Update -- A report from State Representative Al Juhnke -- February 2003
Dear Friends,
Gov. Pawlenty used his constitutional powers to cover the $356 million gap in this year's budget - but solving the $4.2 billion shortfall for 2004-05 still lies ahead. I hope you'll keep in touch as the
legislature makes these critical decisions about our future.
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 ax falls - 'Unallotment' hits rural programs
Gov. Tim Pawlenty again targeted Rural Minnesota to bear the brunt of budget cuts in the "unallotment" plan he unveiled Feb. 7, according to 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. "Long-term prospects for rural development will be irreparably damaged by this. What company would partner with a state that backs out of commitments?"
Juhnke said the Governor's cut of community-education funding is especially painful to rural schools, which receive 88% of those dollars.
Under the state constitution, the governor has unilateral power to cancel spending in the face of a budget shortfall.
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.
"It's possibly going to put some plants out of business and leave thousands of farmer-investors, rural businesses and banks hanging," Juhnke said. "He's not just cutting ethanol - he's hitting the entire rural economy."
The "Minnesota Model" for ethanol created a billion-dollar industry with 14 plants, more than 1,000 jobs and millions in added farm income.
"The Governor said he was tired of supporting Wisconsin and South Dakota," Juhnke noted. "By gutting ethanol, he is supporting Illinois, Iowa and Nebraska instead."
Gov. Pawlenty's Budget Balancing Act
E-12 Education..................................$27 million
Higher Education................................$50.3 million
Health & Human Services....................$22 million
Environment.......................................$17 million
Ethanol Support.................................$20.1 million
Other Agriculture................................$2.7 million
Economic Development.......................$18.5 million
Delay Highway Projects......................$20 million
Other Transportation...........................$2.8 million
Anti-Terrorism Grants..........................$3.2 million
Other Criminal Justice.........................$15.3 million
State Government...............................$10.2 million
Property Tax Aids...............................$1.6 million
Cancel Building Projects......................$12 million
Delayed Tax Refunds...........................$50 million
Taps Minerals Fund.............................$49 million
Taps Insurance Fund...........................$11 million
Taps Remaining Reserves....................$24 million
Rural Minnesota ignored in 'State of the State' Address
Gov. Tim Pawlenty's first State of the State address was mostly a recitation of his campaign promises and lacked a single word about agriculture, Rep. Juhnke said.
"Not a line of his remarks seemed relevant to agriculture," Juhnke said. "That's very
disappointing - it indicates he has a blind spot for 25% of the state's economy and half of its population. We already know that he doesn't support ethanol, which is the most successful economic development effort we've seen in Rural Minnesota in the past two decades."
Juhnke also challenged two assertions made by the Governor: That Minnesota is one of the nation's most-taxed states, and that spending is rocketing up.
"The truth on taxes is that Minnesota is no longer in the top 10 on any major taxes - sales, income, corporate or property," Juhnke said. "In fact, we rank 26th among the 50 states in terms of total tax burden compared to total statewide personal income."
Likewise, the "14.4% spending increase" that Gov. Pawlenty frequently refers to is misleading because it does not account for the state takeover of most local school funding in the past two years. Without that takeover - engineered in part by then-Representative Pawlenty - spending rose about 3% a year, Juhnke explained.
Bill ends tax on EMT vehicles
Local governments and ambulance services could purchase vehicles to provide emergency medical services without paying state registration or sales taxes under legislation introduced by Rep. Juhnke.
"This allows a city or ambulance service to put their dollars to use in providing emergency medical services, rather than paying taxes to the state," Juhnke said.
The bill would cover "first responder" vehicles and others which aren't used for transportation of patients and thus do not qualify as ambulances.
Juhnke questions 'tax free' zones
Rep. Al Juhnke is questioning the usefulness and fairness of Gov. Pawlenty's proposal for so-called "tax free" zones for economic development.
"Improving Hwy. 12 would probably do more than anything else to make Willmar more attractive to new businesses - and a tax-free zone won't change that," Juhnke said.
The general principle is to create 10 zones of up to 5,000 acres each. Businesses that start or expand in the zones would be exempt from income, property and sales taxes for 12 years. Residents who live in the zones wouldn't have to pay income and property taxes.
"Why should two people, or two businesses, be treated differently simply because one is in the zone and the other is across the street?" Juhnke asked. "If businesses and residents inside the zone are exempt from property taxes, those outside the zone would have to pick up their share. You could have a new business come in to a tax-free zone and have an advantage over a competing existing business across town."
Elder Care Leave proposed
Taking a cue from the law that allows parents to take unpaid time off work to attend events at their child's school, a bill has been introduced which extends that concept to help working people care for aging parents.
The bill says employers must grant up to 16 hours of unpaid 'Elder Care Leave' so people can take an elderly or disabled parent or grandparent to health care appointments. The bill also allows employees to use their accumulated sick time or vacation to cover their lost pay.
"This fills a critical need, particularly in Rural Minnesota," Rep. Juhnke said. "Many people work odd hours or have to travel long distances for health care."
