Legislature Finalizes Budget Work; Special Session Comes to a Close
Budget Deal Provides Significant New Investments in Schools and Nursing Homes, Avoids Onerous Income and Business Tax Increases, Says Senator Robling
July 13, 2005
(St. Paul) Marking the conclusion to a tumultuous legislative session that extended seven weeks past a May 23 constitutional deadline, the Minnesota Senate and House passed several final bills Wednesday to wrap up this year’s budget work and bring the special session to a close.
State Senator Claire Robling (R-Jordan), while still disappointed with the stalemate that led to extended legislative overtime and an eight day partial government shutdown, applauded significant new investments in schools and nursing homes included in the final budget deal.
“For a year that started out filled with the hope of compromise and working together, things went frustratingly astray during the last two or three months,” said Robling. “That being said, I am pleased to report that our votes Wednesday mean schools will receive a historic boost in funding, the exploding cost of state-sponsored health care programs will be reigned in while our state’s most vulnerable citizens remain protected, and our nursing home workers will receive a solid cost-of-living adjustment — all without onerous new income and business taxes that could have negatively impacted the our recovering economy.
“While the timetable for completion of our work was disappointing and frustrating, I’m proud of our final product. Ultimately, we pulled together to reflect the priorities of our constituents, make a few tough decisions, and invest wisely.”
Under the budget deal voted on today, education will receive an $800 million increase in funding over the next two years. New funding includes a 4 percent increase to the basic per-pupil formula allowance in each of the next two years, $78.5 million to reward schools that adopt a new performance pay model for teachers, and $11.6 million for the “Get Ready, Get Credit” program, designed to encourage 11th and 12th grade students to take college-level courses.
“Without a doubt this is the best education bill we’ve passed in years — in addition to providing needed new funding, it contains many important policy provisions,” Robling continued. “The teachers and administrators I’ve spoken with are incredibly happy with this year’s final education product.”
The health and human services bill passed today will reduce projected taxpayer-subsidized healthcare and social welfare spending by $363 million, while maintaining generous eligibility guidelines for the state’s MinnesotaCare program and eliminating the $5,000 annual cap for adults without children.
The bill also gives nursing homes and other long-term care providers enough revenue to increase worker salaries by up to 4.5 percent over the next two years, and reduces the co-payments for many families with children who have disabilities and receive government services.
“This bill strikes a good balance between fiscal responsibility and compassion for those who need help the most,” said Robling. “As we move forward, it’s vitally important that we continue to look at ways to ensure the costs of these programs are sustainable for the long-term.”
In addition to the education and health and human services bills, the Senate and House passed a transportation bill and tax bill.
The transportation bill appropriates $3.9 billion over the next two years for the Department of Transportation, the Department of Public Safety, and the Metropolitan Council. Over $3.5 billion of that funding is dedicated to road improvement accounts, and $46 million in new spending is earmarked for transit, including $40 million for transit services in the metropolitan area.
Important aspects of the tax bill include conformity to federal tax relief provisions for members of the armed services and conformity to Health Savings Accounts provisions from the Medicare Act of 2003. It also provides Alternative Minimum Tax filers with full deductions for charitable contributions made in tax years after December 2005, and provides additional Local Government Aid to some communities, including the Scott County communities of Jordan, New Prague, Belle Plaine, New Market, and Elko.
Upon the completion of today’s legislative work, both the Senate and House adjourned until March 1, 2006.
Governor Pawlenty has indicated he will sign the final budget bills approved by the Legislature within the next 24 hours.
Sen. Robling is serving her third term in the Minnesota Senate. She encourages and appreciates constituent input, and can be reached at (651)296-4123, by mail to 143 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155, or via e-mail to sen.claire.robling@senate.mn.
###