Minnesota Senate Budget Discussion

Thank you for visiting the Minnesota State Senate’s Budget Discussion Website.  This is an online community designed to invite you to contribute your ideas on the state budget.  Your ideas will help the Senate develop a budget that reflects the values and needs of our communities.

During this Session, the state will set its budget for the next two fiscal years:  July 1, 2009 through June 30, 2011.  The November 2008 economic forecast revealed that the state government faces a deficit of more than $4.8 billion dollars over the next two years. This is a very significant budget deficit.  In order to create a balanced budget for the next two years, we will need to consider all ideas and be creative in finding solutions.  All Minnesotans will need to be a part of the decision-making process.

To set the frame for the discussions, the charts below help explain the basics of the Minnesota budget.  In the next tab, you will find a more extensive description of the budget and how state government is funded.

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Below you will find discussion forums for each of the state’s budget areas.  We invite you to be part of these ongoing conversations.  After the last commitee deadline in the Senate, we will close the public comment feature of this website. 

Remember that you are always welcome to contact your local Senator by letter, telephone, email or personal visits to the Capitol.  We hope that this website will be another way for you to be a part of the legislative process.

State economists released an updated state budget forecast on Tuesday, March 3rd.  The total state budget deficit has grown by more than 25% since the last forecast was released in November, totaling $6.4 billion for the next two-year budget cycle, 2010-2011.  The amount of revenue the state expects to take in will drop to $30.7 billion in the next biennium.  A portion of the federal stimulus funds recently approved by Congress will be available to help solve the deficit, which brings the remaining shortfall to $4.6 billion.  A good deal of the federal stimulus spending is dedicated to specific purposes, however, so much of the federal stimulus money coming to Minnesota will not be available to plug the general fund deficit.

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Looking for information on how the federal stimulus package with impact MN? 

The Department of MN Management & Budget has already set up a new website to track how federal stimulus dollars from the American Recovery & Reinvestment Act (ARRA) will be spent in Minnesota:  www.finance.state.mn.us/stimulus

Early estimates of federal stimulus funding for MN specifically is already available online at the MMB website through this PDF document.  This document summarizes the American Recovery & Reinvestment Act by describing the program being funded, an estimate of how much money Minnesota will receive for that program, and then a description of how that money will be dispersed:  through an existing forumula, through a competitive grant, etc.

The federal government has also set up a website to track how federal stimulus dollars will be spent:  www.recovery.gov .  This website also provides comprehensive information about the federal stimulus package, such as a state-by-state breakout of where money is going and a timeline of how the money will be spent.

Participants in this budget discussion website have asked for more information on what would happen to the budget if the Legisltaure solved the deficit only through cuts in spending.

Senate Fiscal Staff prepared the information below in order to show the amount of spending that would need to be cut if the deficit were solved by cutting every budget area proportionally.  In order to cut $4.8 billion from the state general fund budget, every budget area would need to be cut by 13.65%.  (The chart below only shows the general fund impact.  Some budget areas receive funding from other sources, like federal funds or dedicated revenue such as the gas tax.)

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NEW:  We added links to the Governor’s budget recommendations for this budget area.

Interested in ethanol or the latest research on biofuels?  Do you have a question about services for MN veterans?  Concerned about bovine TB?

We invite you to contribute your ideas for the state’s Agriculture and Veteran’s Affairs budget.  This forum is a space for you to join the discussion on how the state should prioritize funding for these issues.  

The general fund agriculture and veterans budget for fiscal years 2008-2009 totaled $186 million, out of a total general fund budget of $34.5 billion.  The 2008 November economic forecast projects that agriculture and veterans spending will decrease to $175.7 million over the next two years (FY 2010-2011).

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NEW:  Links to the Governor’s budget recommendations added below the fold.

We invite you to contribute your ideas for the state’s E-12 Education budget. This forum is a space for you to join the discussion on how the state should prioritize funding for these issues.

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NEW:  We added links below to the Governor’s budget recommendations for the primary economic development agencies.

We invite you to contribute your ideas for the state’s Economic Development budget.  This forum is a space for you to join the discussion on how the state should prioritize funding for these issues.  

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NEW:  Links included to the Governor’s budget recommendations.

We invite you to contribute your ideas for the state’s Environment, Energy, and Natural Resources budget.  This forum is a space for you to join the discussion on how the state should prioritize funding for these issues.  

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NEW:  Links to the Governor’s budget recommendations for the health and human services budget.

NEW:  In response to your interest in the HHS budget, we added information about the basic costs of, and enrollment in, MN’s public health and welfare programs.

We invite you to contribute your ideas for the state’s Health and Human Services budget.  This forum is a space for you to join the discussion on how the state should prioritize funding for these issues.  

In the pie charts below, “continuing care” refers to state and federal money going to pay for elderly and people with disabilities (both children and adults) in nursing facilities and group homes, or receiving in-home care (such as nursing or personal care) through programs known as “waivered services.”  “Basic health care” refers to physician, hospital and clinic visits and other outpatient care provided to the elderly, people with disabilities and low income families and children who qualify for public programs.  Some very low income single adults qualify for limited basic health care. 

Welfare programs are a small portion of the “Children and Economic Assistance” pie slice.  Two percent of the Health and Human Services budget goes for welfare programs (MN Family Investment Program and General Assistance); this represents less than 1% of the total state budget.

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NEW:  Links to the Governor’s higher education budget recommendations.

We invite you to contribute your ideas for the state’s Higher Education budget.  This forum is a space for you to join the discussion on how the state should prioritize funding for these issues.  

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NEW:  Links to the Governor’s budget recommendations for the judicial branch of government.

We invite you to contribute your ideas for the state’s Judiciary budget.  This forum is a space for you to join the discussion on how the state should prioritize funding for these issues.    

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NEW:  Links added for the Governor’s public safety budget recommendations.

We invite you to contribute your ideas for the state’s Public Safety budget.  This forum is a space for you to join the discussion on how the state should prioritize funding for these issues.  

The state budget for public safety programs and corrections has been around 3 percent of general fund spending in recent years.  The general fund public safety budget for fiscal years 2008-2009 totaled $1.1 billion, out of a total general fund budget of $34.5 billion.  The 2008 November economic forecast projects that public safety spending will rise to $1.4 billion over the next two years (FY 2010-2011).

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NEW:  Links to the Governor’s budget recommendations for state government agencies and the constitutional officers.

We invite you to contribute your ideas for the state’s budget for state government operations and administration.  This forum is a space for you to join the discussion on how the state should prioritize funding for these issues. 

The State Government Budget Division reviews several large and small agencies.  These agencies are: The Department of Administration, MN Management and Budget (the former Dept. of Finance and Dept. of Employee Relations), the Office of Enterprise Technology, and the Department of Revenue. 

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NEW:  information about the Governor’s budget recommendations for taxes.

We invite you to contribute your ideas for the state’s tax structure. This forum is a space for you to join the discussion on how the state should prioritize funding for these issues.

This chart illustrates the state’s property tax aids and credits.  Although most tax policies relate to raising state revenue, these tax aids and credits spend state resources by passing aid onto local governments (county and city).  The state aid allows local governments to reduce their reliance on property taxes in order to provide local services such as fire and police protection, thereby reducing the burden on property tax payers.

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NEW:  Links to Governor’s budget recommendations for transportation and transit.

Interested in roads, bridges or transit?  Did you know that most transporation spending comes from specially dedicated revenue?

We invite you to contribute your ideas for the state’s general fund transportation budget.  This forum is a space for you to join the discussion on how the state should prioritize funding for these issues.  

Only a small percentage of what the state spends on transportation is funded through the general fund (4%).  Most state transportation funding comes from the Trunk Highway Fund, which is constitutionally dedicated revenue from the state gasoline tax.  A significant amount of transportation funding also comes from federal funds. 

Overall, the state general fund budget for transportation is pretty small, around half a percent, or around $260 million dollars in FY 2008-2009.  General fund spending for transportation supports administrative functions at the MN Department of Transportation, Vehicle Services operations at the Department of Public Safety, and transit operations at the Metropolitan Council.

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