Governor’s unallotment will hurt rural hospitals, police, fire, and schools

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Written by Senator Tony Lourey

Saturday, 27 June 2009 15:12

The governor recently announced his plan to unilaterally cut the state budget through the unallotment process. Much as anticipated, he plans to drastically reduce funding for city and county fire and police protection, cut Minnesota’s nursing homes and colleges and universities, and shift nearly $1.8 billion in funding for our schools.

I am deeply saddened by this budget outcome, which will fall disproportionately hard on those least able to afford it, disinvest in the things that have traditionally given Minnesota a competitive advantage, and cause the loss of many public and private-sector jobs. I’m frustrated that these repercussions could have been avoided had the governor been willing to compromise on behalf of the good of the state instead of going it alone. He refused to accept the Legislature’s balanced budget or even come to the negotiating table. He essentially told the Legislature: “Either you do it my way, or I’ll do it my way.” With a governor with one foot out the door and on his way to higher political aspirations, instead of a fiscally responsible, long-term budget solution, Minnesotans will now have to endure increased property taxes and tuition, nursing home and hospital closures, and financial instability for our schools.

What’s further frustrating is the governor’s clear abuse of the unallotment process. This power was passed into law in 1939, and was originally designed to aid in fixing small, unanticipated budget deficits. Unallotment has been used only five times in the past 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 single unallotment.

The governor’s plan includes a $300 million cut in Local Government Aid and County Program Aid, which is primarily used for public safety and other essential services. Locally, over the next two years this means a $417,000 cut to the Kanabec County budget, $569,000 from Pine County, and $755,000 from Carlton County. City budgets will also be decimated. Hinckley will receive a $78,000 cut over the next two years, Moose Lake $105,000, Sandstone $149,000, Pine City $169,000, Mora $226,000, and Cloquet $643,000. Home and business owners are going to feel the impact of these cuts with increased property taxes and likely cuts to police and fire rescue, snowplowing, libraries, and other local government services.

The governor also plans to use an irresponsible $1.77 billion K-12 education funding shift, a tactic that may cause some schools to have to borrow to make ends meet. He plans a $100 million cut to the Minnesota State Colleges and Universities system and the University of Minnesota, making a higher education even less affordable for Minnesota families.

Unfortunately, the governor continues to target his cuts upon Minnesota’s most vulnerable in our failing economy. He decreases the renters’ refund program by $51 million, resulting in a tax increase for renters. He also cuts $236 million out of health care. This includes eliminating funding for the General Assistance Medical Care program—which provides basic health care for Minnesota’s poorest and sickest—a month and a half earlier than it would have ended under his line-item veto of the program. This cruel cut will not only tip many very low-income families’ budgets over the edge, but will likely cripple hospital budgets, especially in rural areas. These facilities will likely need to make significant layoffs, and many may be forced into closure, jeopardizing both the health and economies of Minnesota’s rural communities.

It is still not too late for the governor to do the right thing for our state. Although he’s not running for reelection and has clearly turned his attentions elsewhere, he is still Minnesota’s governor. He could, and should, call the Legislature back into special session and work with us to pass a fair, responsible, and sustainable budget that will help move us towards economic recovery. Unfortunately, this is unlikely to occur, and instead Minnesotans will be picking up the pieces of his unallotments for years to come.

State Senator Tony Lourey, 303 State Capitol, 75 Rev. Dr. Martin Luther King, Jr. Blvd., St. Paul, MN 55155-1606

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