According to the Department of MN Management & Budget, “a longer and deeper recession is now forecast.”  Real GDP is expected to fall by 2.7% in 2009, although the federal stimulus package is expected to help lift the economy by early fall.  About 20% of federal stimulus dollars will be spent by October 2009, and it is anticipated that this spending will help shorten the recession.  The rest of the federal stimulus spending will occur in 2010 or 2011.  Job growth in Minnesota is not expected to pick up until early 2010.  Unlike prior recessions, Minnesota is being hit harder in the recession than other states and is expected to take longer to recover than it did in the past.

The federal stimulus dollars are helpful, but they are not a long-term solution to the troubles facing Minnesota’s state budget.  The economic forecast revealed that Minnesota has a structural deficit in the “out years” of 2012-2013  of over $5 billion, not including inflation.  If you factor in inflation for the 2012-2013 budget, we will be looking at a deficit of $6.4 billion.  The federal stimulus package is one-time money to help bridge us through the recession, but there are still tough decisions that need to be made.

To read the full forecast, follow this link to the MN Management & Budget website:    http://www.finance.state.mn.us/forecast

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.)

This information is for discussion purposes only.  You can use this information to help contextualize the size of the deficit.

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.

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).

 The agriculture and veterans budget for FY 2010-11 is distributed to five bodies, with 45.3% going to the Department of Agriculture, 22.5% to Veterans Affairs, 22.3% to Military Affairs, 6.4% to the Board of Animal Health, and 3.5% to the Agriculture Utilization Research Institute. 

This committee oversees the Departments of Agriculture, Military Affairs, Veterans Affairs, and related boards and agencies. The general fund provides about half of the funding for these departments, at 44%, while Federal funds provide 43% of the budget for agriculture and veterans issues.

NEW:  Links to the Governor’s Budget Recommendations for this budget area

Department of Agriculture budget recommendations

Department of Military Affairs (National Guard) budget recommendations

Department of Veteran Affairs budget recommendations

Agricultural Utilization Research Institute budget recommendations

Animal Health Board budget recommendations

Veterinary Medicine Board budget recommendations

Information about the 2008 agriculture and veterans budget:

2008 Agriculture & Veterans Affairs Finance Tracking Sheet

2008 Agriculture & Veterans Budget-HF 1812

Try to be as specific as possible in your comments so that your suggestions can be fully utilized by the Agriculture and Veterans Committee.  Thank you for adding your ideas to the discussion. 

You may also share your ideas directly with your local Senator: 

Follow this link to look up contact information for your Senator. 

Follow this link to look up who represents you.            

To learn more about the Senators who serve on the Agriculture and Veterans Committee, follow this link.

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:  Links to the Governor’s budget recommendations for E-12 education programs.

Department of Education 

MN State Academies

Perpich Center for Arts Education

Try to be as specific as possible in your comments so that your suggestions can be fully utilized by the E-12 Education Budget Division Committee. Thank you for adding your ideas to the discussion.

You may also share your ideas directly with your local Senator:

Follow this link to look up contact information for your Senator.

Follow this link to look up who represents you.

To learn more about the Senators who serve on the E-12 Education Budget Committee, follow this link.

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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The Governor released his budget recommendations on January 27th.  Here are links to his recommendations for the state’s prominent economic development agencies.  (There are 11 other boards or agencies that fall under the Economic Development Budget Committee’s jurisdiction that are not listed below):

Dept. of Employment and Economic Development (DEED)

Dept. of Commerce

MN Housing Finance Agency (MHFA)

Dept. of Labor and Industry

Workers Comp Court of Appeals

Explore Minnesota Tourism

Try to be as specific as possible in your comments so that your suggestions can be fully utilized by the Economic Development Budget Division Committee.  Thank you for adding your ideas to the discussion. 

You may also share your ideas directly with your local Senator: 

Follow this link to look up contact information for your Senator. 

Follow this link to look up who represents you.            

To learn more about the Senators who serve on the Economic Development Budget Committee, follow this link.

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 environment and natural resources.

Department of Natural Resources (DNR)

Pollution Control Agency (MPCA)

Public Utilities Commission (PUC)

Try to be as specific as possible in your comments so that your suggestions can be fully utilized by the Economic Environment, Energy and Natural Resources Budget Division Committee.  Thank you for adding your ideas to the discussion. 

You may also share your ideas directly with your local Senator: 

Follow this link to look up contact information for your Senator. 

Follow this link to look up who represents you.            

To learn more about the Senators who serve on the Environment, Energy and Natural Resrouces Budget Committee, follow this link.