On Sunday, May 18th, the 85th MN Legislature and the Governor agreed on the Omnibus Budget Bill (HF 1812.) The deal was reached just hours before the clock ran out on the 2008 session.
With a group of Civil War re-enactors singing songs from the 1850-60’s era in the Rotunda, Rep. Lyndon Carlson, (DFL 45B), presented the bill which he called a balanced budget and urged its adoption. Ironically, his fortune cookie from lunch that day read “You shouldn’t overspend at the moment. Frugality is important.” Several lawmakers responded, including Rep. Seifert, (R-21A), saying the bill is a good first step in balancing the budget for the future and urged support. Rep. Pelowski, (DFL 31A), said the bill was cutting health care to pay for education funding increases and property tax reductions.
The bill cuts $355 million and uses $500 million of reserve funds.
Some of the highlights of the bill, of which I voted for, are as follows:
1. Caps property taxes at 3.9% with guidelines for some exceptions.
2. Invests $70 million in the Central Corridor Lightrail project.
3. Provides $64 million in additional local government aid (LGA) and will offer $20 million in property tax refunds to the neediest homeowners.
4. Sets aside $20 million to buy land for a new State Park on Lake Vermillion.
5. Gives more money for K-12 education and nursing homes. Schools will get an extra $43.8 million in funding ($51/student).
6. Provides health care coverage for an estimated 12,000 uninsured Minnesotans and at the same time reduces health costs by 15% by improving quality of some services.
In the end, negotiations produced a budget both DFLers and Republicans supported. As Speaker of the House, Rep. Kelliher, (DFL 60A) said, looking back on the 2007/08 sessions, “I think we have been the most productive Legislature in a very, very long time.”