Budget Balanced

 The $935 million projected state budget deficit is erased and the budget is balanced for FY 08-09 without raising taxes.

 Overall state government spending is reduced.

 Progress is made toward resolving the projected budget deficit for FY 10-11.

Tax Relief for Minnesotans

 Local property taxes will be capped for three years. Cities and counties will be limited to an increase of 3.9 percent per year with allowances for special conditions such as population growth. Governor Pawlenty’s property tax cap and related relief is projected to save taxpayers $78.5 million in 2009 and $460.5 million over the next three years.

 Minnesota cities and counties will receive $60 million in additional local aids and credits in 2010 and $79 million in 2011.

  Property tax relief of $21 million in FY 10, $25 million in FY 11, and $25 million each year thereafter through an enhanced property tax refund program which provides direct relief to homeowners.

 Tax credits for veterans and military personnel of up to a $750 credit for disabled veterans or military service members with at least 20 years of service, and a doubling of the Military Combat Zone tax credit. In addition, military pay for training and drills will no longer be counted as taxable income.

 Adopted federal conformity provisions for individual and business taxpayers, a net income tax decrease of $7.4 million in FY 08-09 and $11.5 million in FY 10-11.

 Reduced property tax classifications are authorized for qualifying non-profit community service-oriented organizations and small resorts.  Governor Pawlenty created the 21st Century Tax Reform Commission by executive order. The Commission will recommend tax law changes by December 2008 that improve Minnesota’s ability to compete with other states and nations for jobs and business investments.

Health Care Reform

 Minnesota is now nation-leading in health care transparency, with Minnesota consumers able to access more health care price and quality information than any other state.

 Minnesota will be the first state in the nation to require all health care providers use e-prescribing to electronically send accurate and error-free prescriptions from the point-of-care to the pharmacy.

 Patient-centered “health care homes” will be developed to provide comprehensive primary care. Medical homes will help patients coordinate care, especially for chronic diseases, in an often complex and confusing system.

 Health care payment reform based on financial incentives to improve quality, reduce cost, engage consumers in decision-making, and encourage more market competition among health care providers and health plans.

 Uninsured Minnesotans who are eligible for a pre-tax medical account and purchase insurance in the private market will be eligible for a new 20 percent insurance premium tax credit.

 A grant program will help small employers establish Section 125 plans that allow individuals to pay insurance premiums before taxes are deducted.

 The health care reform package is projected to save 12 percent in health care costs.

Agriculture & Veterans Agriculture

 B2 to B20 – As proposed by Governor Pawlenty at Farm Fest 2007, Minnesota will be the first state in the nation to require 20 percent biodiesel content in diesel fuel by 2015. The initiative includes fuel quality assurances and off-ramps in times of tight supply.

 $6.2 million in funding to help eradicate bovine tuberculosis in Minnesota through increased livestock testing, tightened restrictions on animal movement, fencing assistance and optional herd “buy-outs” for livestock producers.

 The Livestock Investment Grant Program will provide grants to qualifying livestock producers who make improvements to their operations. Grants would be equal to ten percent of the first $500,000 of investment, with a minimum investment of $4,000. Veterans and Military Family Support

 The Proud to be a Veteran License Plate is now authorized for motorcycle use and allows the current funds from the sale of these plates to be used for veterans programming.

 Civil court proceedings will be stayed for the business owned by a National Guard or other military reserve member who has been ordered into any type of active military service for 60 or more consecutive days.

 Minnesota law is changed to allow a promotion in rank in the event a member is killed in action before they have attained ten years of service in the National Guard.

 Families of service members are now protected from being discharged from employment based on their spouse serving in the military.

 The Minnesota GI Bill is modified and increases the annual award for qualified service members from $2,000 to $3,000.

 Property tax relief is increased for disabled veterans with 70 percent or more disability. In addition, a new hardship property tax assessment deferral is now available to members of the National Guard and Reserves in active service.

  Governor Pawlenty signed a bill officially recognizing July 27 as Korean War Armistice Day in Minnesota to acknowledge the value and sacrifice of Minnesota veterans who fought in Korea.

 Vietnam Veterans Day was officially established as March 29. There were 1,072 Minnesotans killed in action in Vietnam.

 Minnesota WWII veterans who were unable to attend the state WWII Memorial dedication will be able to obtain a commemorative medallion from State Veterans Service Organizations.

 A new business assistance program for military reservists is created, authorizing the Minnesota Department of Employment and Economic Development to make loans of up to $20,000 per borrower.

 Governor Pawlenty proposed that Minnesota Department of Natural Resources transfer land in Jay Cooke State Park to the Minnesota Department of Veterans Affairs (MDVA) for development of a new state veterans cemetery, in order to provide additional dignified burial places and a lasting memorial for veterans and their families, especially those in northeastern Minnesota. Minnesota law was also modified to authorize any future state veterans cemetery, if needed.

 The County Veterans Service Officer Working Group is created to review the findings and recommendations of the 2008 report of the Office of the Legislative Auditor on Minnesota's county veterans service offices.

 The executive, legislative, and judicial branches of state government must report on employment, recruitment, retention, and retirement of veterans in their non-elected workforce for FY 08.

 Created the Veterans Health Care Advisory Council to provide advice on quality long-term care and the anticipated future needs of Minnesota veterans.

  $250,000 for to improve service of the veterans claims office by funding additional staff, travel, and training.

 $2.5 million in FY 09 and $1.5 million each year thereafter for the State Soldiers Assistance Program (SSAP) that provides cash assistance for shelter payments, utilities, and personal needs for veterans who are unable to work as a result of temporary disability.

 An additional $500,000 to meet current County Veterans Service Office grant requests that enhance benefits, programs, and services provided to veterans, giving priority to outreach, reintegration of combat veterans and reducing homelessness among veterans.

 $720,000 a year to continue the operation of LinkVet, the toll-free customer service line that provides veterans with information referrals, immediate crisis intervention and psychological counseling 24 hours a day, seven days a week. In addition, LinkVet case workers will now be available to coordinate benefits and needs of veterans, military members and their families.

 Courts must now inquire about a defendant’s military status and history at sentencing. If a defendant convicted of a crime is a veteran and has been diagnosed with a mental illness, the court may consider local treatment options.

Health & Human Services

 Governor Pawlenty signed legislation that lowers the legal age for blood donors from 17 years old to 16 years old. The bill was conceived by a high school student who was unable to donate blood at a school blood drive because of his age.

 Under “Justin’s Law” signed by Governor Pawlenty, a prescription or drug order for commonly abused prescriptions is not valid unless it is based on a documented patient evaluation.

 Governor Pawlenty signed the Abigail Taylor Pool Safety Act that requires pool operators to conduct regular inspections and improve the safety of pool drains.

 A study of mesothelioma, a rare form of cancer that has been found in large numbers among mineworkers in northeastern Minnesota, will be conducted by the University of Minnesota and the Minnesota Department of Health.

 Minnesotans will have greater flexibility in calculating income and property assets when applying for long-term care through a state facility.

Renewable Energy

 Governor Pawlenty created the Minnesota Office of Energy Security within the Department of Commerce. The office coordinates state policy, programs and information on energy and related issues.

 Clean Energy Technology Collaborative was created by Governor Pawlenty’s executive order. The group provides advice and recommendations to the Governor on advances in technology and research necessary to achieve Minnesota’s long-term clean energy goals.

Economic Development

 Small towns will be able to access the Public Facilities Authority’s high investment bonding rating for wastewater, drinking water and storm water facilities. This will help lower the costs at the local level and help in offering complete financial package for critical job creating efforts.

 Establishment of the Office of Science and Technology at the Department of Employment and Economic Development to help small businesses and entrepreneurs access federal grant programs for technology development.

Public Safety

 Governor Pawlenty advanced immigration reform by issuing an executive order requiring the use of E-Verify for newly hired employees in the executive branch and requiring certification of compliance with federal immigration laws for state contract vendors and employers receiving business subsidies.

 Additional immigration reform efforts include an executive order, signed by Governor Pawlenty, directing several state agencies to work with federal officials as part of the Agreement of Cooperation in Communities to Enhance Safety and Security (ACCESS) program. ACCESS includes Immigration Cross-Designation for state law enforcement officers, participation in a program to identify criminal aliens who are incarcerated within the state, and a task force that targets identity theft and fraud in the immigration process.

 Credit cards may now be used to pay costs associated with fines and court proceedings. Court operations will also be improved through the electronic transfer of information between law enforcement and court offices.

 The Natural Disaster Assistance Procedures bill creates a framework for all state agencies to use when responding to natural disasters and specifies the types of aid that communities and individuals can expect from the State.

 Over the next 4 years, the Division of Driver and Vehicle Services (DVS) will build a new information system that will improve security and detect possible fraud.

Mortgage Foreclosure Prevention

 Governor Pawlenty’s mortgage foreclosure prevention initiatives include expanded foreclosure counseling workshops to be held around the state, the creation of a compact with lenders, mediation funding to assist homeowners when counseling is unsuccessful, and a new Commerce Department assistance hotline for counselors.

 Governor Pawlenty announced a $4.3 million federal grant, the second-largest such grant made to any state, to expand foreclosure prevention counseling in the state.

 Additional notice will be provided to homeowners regarding counseling services and requires the lender to provide a contact name and number of someone who has authority to negotiate the loan.

 Renters in a multi-tenant building can now jointly pay their building’s utility bills when the landlord is past due or is facing foreclosure. This ensures that renters will not have their utilities shut off.

 Analysis of foreclosure issues will be improved through better data collection. The Secretary of State will convene a statewide foreclosure data collection group to study the most efficient way to develop and implement an electronic system for submission, collection, assessment and retrieval of statewide foreclosure data.

 Neighborhood blight will be reduced by amending current law for the determination of when a property is abandoned, allowing abandoned properties to get back on the market sooner.

 The predatory lending law is clarified and strengthened to help prevent subprime lending abuses, negative amortization, fraud and other problem lending practices that contribute to the increase in foreclosures.

Other Accomplishments

 Victims of the Interstate 35W bridge collapse and their families now have access to a $38 million compensation package. Anyone on the bridge when it collapsed will receive up to $400,000. Those with more severe injuries are eligible for additional compensation from a pool of $12.6 million.

 Procedures will be streamlined for absentee voting by military members and Minnesota residents living overseas.  Insurance companies now have additional legal obligations to act in “good faith” when responding to a claim made by the insured under certain types of insurance policies.

 A High-Speed Broadband Task Force was created to identify areas in the state that lack infrastructure to support broadband service. The task force will also develop a comprehensive plan to achieve a statewide high-speed broadband goal.

 Insurance companies and agents must annually notify homeowners if their insurance policy does not include flood coverage. The required notice will also remind homeowners that they have the right to purchase flood insurance if they so choose.

 The “Hannah Montana Bill” prohibits persons from using, possessing, or selling software that interferes with internet ticket sales.

$822.5 million General Obligation Bonding

 Total bonding within the state’s 3 percent debt service limit of $825 million

Higher Education $131 million for the University of Minnesota including:

 $48 million for a new science classroom and student services center on the Minneapolis campus at the Washington Avenue bridgehead.

 $35 million for higher education asset preservation and replacement (HEAPR).

 Bonding authority of $233 million to build four new buildings for the Minnesota Biomedical Research Program.

 $10 million for a Civil Engineering Addition on the Duluth campus.  $5 million to renovate the Community Services Building on the Morris campus.

$208 million for Minnesota State Colleges and Universities system including:

  $55 million for higher education asset preservation and replacement (HEAPR) to maintain MnSCU facilities across the state.

 $25 million to complete the final phase of a major addition to the Trafton Science Center at Minnesota State University Mankato.  $15 million to complete the final phase of a major addition and renovation to the Brown Hall Science Center at St. Cloud State University.

 $14 million to complete a construction trades and transportation academy at St. Paul College.  $9 million to construct an addition to the Sattgast Science Building at Bemidji State University.

 $20 million for classroom renovations at Normandale Community College and Inver Hills Community College.

 $6 million to renovate small science labs at 11 MnSCU campuses around the state.

Environment and Outdoors Funding includes:

 $20 million to acquire and develop land for the new state park on Lake Vermilion.

 $48.5 million for loans and grants for drinking water and wastewater treatment facility improvements.

 $15 million to cleanup a contaminated landfill in Washington County. 3M is providing up to $8 million for cleanup of the site.

 $30 million for wetland preservation activities.

 $5 million to accelerate strategic acquisition of new Wildlife Management Areas (WMA), improve WMA facilities and restore habitat on newly acquired lands.

 $3 million for the Forest Legacy Project to acquire conservation easements on private forestlands, primarily in northern Minnesota.

 $10.5 million to improve and expand the Metropolitan Regional Park system.

 $1 million for shoreline habitat acquisition.

 $3 million for state forest land reforestation.

 $4 million for native prairie conservation and protection.

 $1.5 million for rehabilitation of fish hatchery facilities to maintain efficient production of fish stock.

 $15.3 million for repair and renovation of state trails.

 $19 million to acquire, develop and renovate state parks and recreation areas.

Economic Development Funding includes:

 Governor Pawlenty’s Strategic Entrepreneurial Economic Development (SEED) initiative:

o $7.8 million for the Redevelopment Grant program, which provides assistance in redeveloping commercial, industrial and residential sites.

o $7 million for Greater Minnesota Business Development infrastructure. o $9 million for Bioscience Business Development infrastructure.

 $28 million for infrastructure related to the Minnesota Steel plant

 $38 million for the Duluth Entertainment Convention Center.

 $20 million for Bemidji Regional Events Center

 $10 million for Crookston Ice Arena

 $2 million for St. Cloud Convention Center

 $6.5 million for St. Cloud State University – National Hockey Center

State Building Asset Preservation Funding includes:

 $18.2 million in Trunk Highway Bonding to repair the exterior of the Minnesota Department of Transportation Building in the Capitol Complex.

 $13.4 million for State Capitol asset preservation and design and planning for the full restoration of the building.  $6.4 million for Department of Human Services facilities.

 $2.5 million for the Minnesota Zoo.

 $3.3 million for the Perpich Center for the Arts and the state academies for the deaf and blind.

 $4 million for the Minnesota Historical Society.

  $5.7 million for emergency repairs, unanticipated hazardous material abatement, and property acquisition.

Veterans and Military Funding includes:

 $10.1 million for the state’s share of improvements at the Minneapolis Veterans Home, including demolition of Building #9, construction of a new 100-bed nursing facility, and heating and air conditioning work.

 $4 million for asset preservation at Minnesota Veterans Homes facilities statewide.

 $6 million for asset preservation, life safety and improvements at military facilities, including armories and training/community centers, statewide.

Public Safety and Corrections Funding includes:

 $16 million for continuation of an expansion at the Minnesota Correctional Facility-Faribault, including construction of an intake security center building.

 $10 million for asset preservation at correctional facilities statewide.

 $5 million for design and construction of an emergency management training center at Camp Ripley.

 $4 million for development of a public safety training facility in Olmsted County.

 $6 million for Red Wing Juvenile Correctional Facility vocational building.

 $3 million for Anoka Forensic Laboratory.

Transportation Funding includes:

 $55 million for Minnesota’s share of the Urban Partnership Agreement awarded by the federal government. In addition, the federal government is providing $133.3 for a project that will add a MnPASS-type congestion pricing lane to I-35W south of downtown Minneapolis, rebuild two avenues in Minneapolis for better transit use and add park and ride facilities and buses.

 $70 million to advance the Central Corridor light rail project

 $2 million for the Cedar Avenue pedestrian and bike bridge.