The Governor Unallots
Published On: 16th June 2009 | Published By: Kevin Dahle For SenateProperty taxes and college tuition will rise, hospitals and nursing homes will see deeper cuts, and school districts may be forced to borrow to make ends meet after Minnesota Governor Tim Pawlenty enacts his proposed unallotments. Pawlenty announced his intentions to drastically reduce funding for aid to cities and counties, cut funding for nursing homes, and to shift nearly $1.8 billion in school funding at a press conference this afternoon.
Unallotment is a little used power that was put into law in 1939 that allows the Governor to cut funding for state expenditures. It was originally designed to aid in fixing small, unanticipated budget deficits. The power has been used only six times in 70 years, with Pawlenty using it three of those times. The Governor’s proposed $2.7 billion unallotment is larger than all five of the previous unallotments combined and nearly 10 times more than the largest.
The Governor’s proposed unallotments include:
• $300 million in Local Government Aid and County Program Aid, primarily used for local public safety and essential services
• $1.77 billion K-12 education funding shift that may cause some schools to have to borrow to bridge funding
• $51 million decrease to the renters’ refund program resulting in a tax increase for renters
• $236 million reduction of health care, including eliminating the General Assistance Medical Care program, which provides health care for the sickest and poorest Minnesotans, one and a half months sooner than would have happened as a result of Pawlenty’s line-item veto
• $100 million cut to Minnesota State Colleges and Universities and the University of Minnesota
• $33 million in cuts to most state agency operating budgets
The cuts to aid for cities and counties are particularly troubling. Cutting LGA (Local Government Aid) is likely to lead to increases in property taxes and cuts to local police and fire departments and additional basic services. The State has a budget deficit, but the problem seems to keep getting passed on to local governments. In addition, reductions in funding for hospitals and our higher education institutions will mean additional private and public sector job losses throughout the state. It doesn’t make sense to cut even more jobs when our state is struggling with high unemployment.
This week the primary seat belt law goes into effect. While I supported the bill, I have taken a circuitous road to get there.
Yesterday, I had the opportunity to speak before the Northfield Rotary Club, providing a brief summary of the just completed legislative session. Representative David Bly also shared in the wrap up. The Northfield Rotary is a great group of local citizens who meet every Thursday for lunch at the Northfield Country Club. I want to extend thanks to Doug Crane for the invitation and Laurie Williams, Rotary President and Rick Estenson, President Elect, for their hospitality and fellowship. The Rotary Club, a nationwide service organization, incorporates the Four-Way Test as part of their philosophy of service. Those four questions:
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