Governor Tim Pawlenty today signed three major state funding bills that provide funding for health and human services, jobs and economic development, and state government.

“We’re funding important programs to reform health care, increase affordable housing, and expand insurance coverage for children,” Governor Pawlenty said. “Our new level of investment in mental health in Minnesota is unprecedented and will help transform the mental health system. We are also continuing our efforts to reform and streamline state government so that it can better meet the needs of Minnesotans.”

Omnibus Health and Human Services Appropriations Bill

The $1.46 billion in new spending for the next two years will help make progress toward modernizing and improving access to the health care system, and make other key investments in health and human services programs. Key provisions of the bill include:

• $35 million for the Governor’s Mental Health Initiative, aimed at improving the accessibility, quality and accountability of publicly funded mental health services. The major policy reforms represent the efforts of the broad-based and bipartisan Mental Health Action Group, led by the Minnesota Department of Human Services
• Enrolling 30,000 more children in publicly funded health care programs through eligibility changes and outreach efforts. The bill also expands coverage and eligibility for adults without children on MinnesotaCare.
• Funding for QCare – Quality Care and Rewarding Excellence – a program that rewards top providers who provide optimal care for Minnesota Health Care Program enrollees with diabetes and cardiac diseases. Provider-directed care coordination will manage health issues of patients with complex chronic illnesses.
• Providing about $94 million to support services for people who are elderly and people with disabilities by providing rate increases of 4 percent over the next two years for a wide variety of home and community-based services. Nursing homes will also receive increased funding with a portion of the increase based on their level of quality.
• Creating a new uniform billing and coding process to increase system efficiency and lower health care costs.
• Investing in E-Health to move Minnesota toward an interoperable electronic medical record system, ensuring that the health care industry is better able to provide care that is safer, more coordinated, more efficient, and less expensive. The bill requires that all hospitals and health care providers implement interoperable electronic health records by January 1, 2015 and provides $14 million dollars to help small rural health care providers and community clinics meet that goal.
• Minnesota is increasing administrative simplification by requiring all health care payers and providers doing business in Minnesota to use electronic methods for all claims and eligibility transactions. Paper claims and eligibility transactions can no longer be submitted in Minnesota after January 15, 2009
• An additional $4.1 million for pandemic flu planning and preparations, including the purchase of antivirals and the stockpiling of medical and health care supplies.

Jobs and Economic Development Omnibus Bill

An investment of $340 million will help create new jobs, develop affordable housing, and fund several state agencies including the departments of Employment and Economic Development and Labor and Industry.

Key provisions of the bill include:

• The Minnesota Investment Fund will receive $5 million to help create new jobs and leverage private funding, boosting the economic vitality of Minnesota communities. Included is funding for the Thomson West expansion that will result in 2,000 new jobs and $100 million of new construction.
• Investing over $25 million in new funding at Minnesota Housing Finance to develop and protect affordable housing, including $15 million infusion into the Housing Challenge Program that partners with private developers and local governments to build affordable housing units where jobs are located.
• $15 million to Minnesota Housing Finance to continue efforts started in 2003 to end chronic homelessness in Minnesota and to meet the goal of providing 1,200 housing opportunities this two year budget cycle.
• Natural disaster assistance is provided for, Rogers, LeSeuer, and Warroad.

State Government Omnibus Bill

The $709 million State Government Omnibus Bill will strengthen state information technology security, enhances tax compliance, implements reforms in state procurement, property management and licensing and abolishes the Department of Employee Relations. Key provisions of the bill include:

• $8 million to begin a comprehensive information technology security program that protects citizen data and critical government systems.
• Preliminary preparations will be made for an electronic licensing system for state-issued business and professional licenses and a study of alternative funding mechanisms to continue and complete the system.
• $20 million will fund additional activities to identify and collect tax liabilities from individuals and businesses that currently do not pay all taxes owed. This initiative is expected to ensure everyone pays their fair share and nets new general fund revenues of $82 million for the next two years.
• State procurement reform will provide a variety of tools to ensure the best value possible for the goods and services the state purchases with taxpayer dollars.
• $2.5 million to implement a shared computer system for managing the state’s 5,000-plus buildings and the land associated with them. The state currently has no single system for keeping track of its real estate holdings.
• Small Agency Resource Team (SMART) will receive funds to implement a shared services organization that would provide human resources and financial management services for the state’s small agencies, boards, commissions and councils.
• Funding is provided to begin preparations for the 2010 federal census, helping to ensure an accurate count of Minnesotans necessary to protect federal funding, congressional representation and ensure accurate allocation of local government aid funds.
• As proposed by Governor Pawlenty, the bill formally abolishes the Department of Employee Relations and transfers its duties to the departments of Administration and Finance on or before June 1, 2008.