House DFL Unveils Budget Targets with Investments in Education, Education Forum on March 23

Yesterday, House DFLers unveiled a framework for the state budget, which calls for historic investment in education - including a plan to fully pay back Minnesota’s schools - for the first time since the Great Recession began.

Budget Basics

For those of you who may not be familiar with the procedure of the Minnesota Legislature — and I wouldn’t blame you if you weren’t — the process goes like this:

The governor proposes a budget early in the session, which is updated once Minnesota Management and Budget releases the February budget forecast. The governor’s proposal is a starting point for budget discussions, but at the end of the day a budget has to pass both the House and the Senate. After the February forecast is released House and Senate Majority Leadership each announce these budget targets, which are numbers for each budget area — K-12 Education, Higher Education, Health and Human Services, Transportation, Jobs and Economic Development, Public Safety, Housing, Judiciary, and so on.

Once the targets are announced, the committees in each budget area begin working on Omnibus Finance bills. These bills then follow the typical legislative process: committee passage, floor passage, conference committees and then to the governor. As a member of the Health and Human Services Finance committee, I will be working closely on this part of the budget.

It’s important to note that these budget targets are a framework and not a final budget plan. Through input from constituents, committee work, and negotiations with the Senate and Governor, budget plans can and will change.

This biennium’s targets

Minnesota’s budgets for the past decade have been a rollercoaster of covering up for ongoing budget crises with one-time shifts and gimmicks. In contrast, the House DFL budget targets in this biennium are designed to put an end to the ongoing structural deficits in the budget. This proposal reflects the priorities of Minnesota by both providing smart investments and calling for reduced spending. This new approach will position Minnesota for future economic growth and success.

The proposed budget:

• Closes the state’s $627 million deficit in the FY 14-15 budget cycle using new revenue, spending cuts and reforms and provides for structural balance in FY 16-17.

• Fully pays back the $854 million IOU to Minnesota schools for the first time since 2007

• Invests $1 billion in priorities to strengthen Minnesota’s economic future, including $700 million for early childhood education through post-secondary education, $250 million in middle class property tax relief, and another $46 million in job creation.

I heard clearly from the people in our area over the last year that they wanted an honestly balanced budget that paid back our schools, invested in education and job creation, while also making targeted cuts and finding reforms and efficiencies.

Paying back schools, investing in education

In the last biennium, the legislature borrowed a record $2.4 billion from Minnesota schools. Under this budget framework, Minnesota schools would be fully paid back this budget cycle. In addition this budget invests in education to put Minnesota on the path to building the world’s best workforce. We know what works. Study after study have shown that early childhood education and all-day kindergarten give the state a great return on investment and can close the achievement gap. A great education system is the key to building a world-class economy that attracts businesses and great jobs to Minnesota.

Finding efficiencies

The budget targets also contain $150 million in cuts to Health and Human Services and another $20 million in cuts to Transportation. We were elected to make tough choices at the legislature and in addition to making necessary investments, Minnesotans expect us to find cuts and efficiencies as well. It’s my goal that these are targeted cuts that don’t hurt seniors or our most vulnerable, or cripple our already-struggling roads and bridges.

Education Forum

This Saturday, March 23, I will be holding an education forum with Jeff Solomon, Finance Director for ISD 196. The forum will be from 10:00-11:30 AM at Dakota Hills Middle School (4183 Braddock Trail Eagan, MN 55123). Please attend if you can!

I am your voice at the Capitol and I want your input on these budget targets and how best to balance the budget and move Minnesota forward. You can reach me by phone at 651-296-4128, or by email at rep.laurie.halverson@house.mn. You can also visit my legislative website to read news or sign up for my email updates.

Laurie Halverson

State Representative

District 51B