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From Minnesota Public Radio
Legislators in Minnesota have set themselves the task of drawing up a new biennial budget – a process that begins this week when Governor Tim Walz puts forward his $ 50 billion proposal.
Walz makes his proposal as « Minnesota’s COVID-19 Recovery Budget, » which largely focuses on helping small businesses, helping working families affected by the disease or its consequences, and helping students catch up after a year of largely distance learning.
« COVID is everything, and it really sets the stage for the proposals and sentiment as we release the budget, » said Jim Schowalter, Top Walz Budget Advisor, Commissioner for the Minnesota Department of Management and Budget.
The release of the Tuesday Budgets – thousands of pages detailing what agencies would manage hundreds of programs – is the start e ines month-long slog to the end. A new budget has to be in place by July 1st in order to avoid an interruption of the services.
Ultimately, the legislature and the governor have to agree on how much to give the schools for operation, who is for what amount of subsidized Health care qualifies whether the entry fees for state parks will change, whether the tax rates will be adjusted and much more.
Legislators have to deal with an expected loss of income, although this is due to an updated economic forecast in February and a possible relief Washington could change it through its final votes.
Schowalter wouldn’t say whether Walz will propose tax increases. But the legislature of both parties expects it.
« We see the state budget as being a moral document, » she said. « And we should fund the things that Minnesotans need, and we should have a fair tax system where people pay their fair share. » Senate Majority Leader Paul Gazelka, R-East Gull Lake, and the Minority leaders of the house, Kurt Daudt, R-Zimmerman, both say their members will speak out against new taxes. Instead, they are pushing for a general cut in state budgets and have proposed using the state’s budget reserve to fill the remaining gap. « We have a good amount of reserves that you can save for rainy days, » said Gazelka. “And everyone acknowledges that this is a rainy moment. It’s going to be tough, but I think you can do it without a tax hike. «
The historic pandemic, which has increased the vital role of public health authorities and shook economic and social life for almost a year, is overshadowing this year’s budgeting efforts.
The scale of the problem is also controversial : The last comprehensive look at Minnesota’s finances in early December showed a projected deficit of $ 1.3 billion for the 2022-23 budget period, but the state ended its last fiscal year in better shape and reduced the problem to $ 882 million, when leftover money is factored in.
Also, hundreds of millions of dollars from the latest federal coronavirus aid package are expected to flow through the Minnesota Treasury. How flexible those dollars are is a big question mark.
« That will make our budget negotiations and deliberations a little more complicated, » said Hortm at. “Because it sometimes takes a while to decipher federal legislation.”
In particular, the Republican-led Senate has pushed the Walz government for details on COVID-19 issues to date. Legislators have resented being excluded from important decisions and complained that they didn’t know enough about how billions of dollars have been used.
« Bypassing the legislation is not a good place, » said Senator Mary Kiffmeyer, R-Big Lake. She said the future federal money should be mixed in with the next two-year budget and not allocated separately, although top lawmakers seem resigned to the notion that the administration has leeway.
In addition to COVID-19, Walz has also spoken about it to take advantage of his plan to increase security at the State Capitol. This could include permanent fences, additional officials, and limited entrances when the building reopens to the public.
« If you don’t have a surplus, no one should think about a new program to add. I was just trying to navigate through defeating COVID and finalizing the two-year budget, « he said. » If we can work these two things together, it would be very good for Minnesota. «
Legislature won’t get its heaviest budget work until March The Walz proposal will be dissected by then.
Schowalter said some things have changed since the last major budget report in early December, including a special session to pass a business bailout and a law to ease that Congress that will put more money in the treasury. Signs of economic recovery could also improve sales prospects if the new forecast will be released next month.
« Usually we set the table and we all admire the table and the numbers for a while and it doesn’t change much, » said Schowalter. “It’s a lot of new plays this time.”
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Ref: https://www.austindailyherald.com
