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So far, budgets don't balance at state Capitol
By Senator Rod Skoe
Minnesota Senate
As I predicted last week, the Minnesota Senate spent most of this week debating
budget bills on the Senate Floor. The body passed budgets for education, health
and human services, state government, public safety, environment and natural
resources, agriculture, and jobs and economic development.
Next week, we will consider a tax bill and a transportation funding bill, and then all
of these proposals will begin being debated with the House and Governor in order
to solve the $5 billion budget deficit by May 23.
The bills that passed this week do not come close to solving that $5 billion
problem. That is one of the reasons I didn't support any of these proposals. The
Health and Human Services bill, for instance, claims to save $603 million by
asking the federal government for a waiver on Medicaid coverage requirements.
Right now, states receive federal funds to help offer health coverage to residents
below a certain income level. This is a state-federal partnership meant to provide
basic coverage so our hospitals' emergency rooms - and insurance-premium
payers - don't bear the burden of paying for health care for very low-income
families.
The Senate's health care budget assumes the state could save money by
eliminating this health coverage for about 100,000 adults and children, but
Minnesota needs a federal waiver to make this change. Experts at the state and
federal level have said this waiver is not legal, yet the savings are counted in this
bill.
The Senate's State Government and Veterans budget is similarly off-balance. It
counts on $217 million in savings that the state's top, non-partisan financial experts
do not validate. The bill has good intentions, seeking to save money by improving
the way the state purchases goods and improving tax compliance methods. State
agencies, however, said it's unrealistic to believe the state could save anywhere
near $217 million because Minnesota already is a national leader in these types of
efficiencies. In addition, the same bill cuts the state workforce by 15%, eliminating
the support staff that would be needed to actually increase tax audits and
compliance efforts.
Relying on invented numbers is no way to balance the state's budget. As elected
officials, we are charged with keeping very close watch of state dollars to ensure
we have enough money to fund the things we need. I happen to agree with
Governor Mark Dayton that we need new revenue in order to support the things
that Minnesotans expect the state to provide - things like keeping our state parks
open, which is threatened in the environment budget that passed this week.
The Republican majority in the Senate does not believe we need new revenue and
wants to solve this budget through cuts alone. I accept that philosophical difference
of opinion and stand ready to debate each side of that issue in a mature,
responsible manner. It's not at all responsible to budget with invented numbers just
to make the budget look balanced. We deserve an honest conversation.
Governor Dayton has been very clear that he will not accept a budget without
documented, sound numbers to support the savings. I am hopeful that we all can
agree on this basic expectation very soon so we can begin debating an honest
budget and finish our work in the next eight weeks, on time and without the need
for a special session.
Minnesota Senate
As I predicted last week, the Minnesota Senate spent most of this week debating
budget bills on the Senate Floor. The body passed budgets for education, health
and human services, state government, public safety, environment and natural
resources, agriculture, and jobs and economic development.
Next week, we will consider a tax bill and a transportation funding bill, and then all
of these proposals will begin being debated with the House and Governor in order
to solve the $5 billion budget deficit by May 23.
The bills that passed this week do not come close to solving that $5 billion
problem. That is one of the reasons I didn't support any of these proposals. The
Health and Human Services bill, for instance, claims to save $603 million by
asking the federal government for a waiver on Medicaid coverage requirements.
Right now, states receive federal funds to help offer health coverage to residents
below a certain income level. This is a state-federal partnership meant to provide
basic coverage so our hospitals' emergency rooms - and insurance-premium
payers - don't bear the burden of paying for health care for very low-income
families.
The Senate's health care budget assumes the state could save money by
eliminating this health coverage for about 100,000 adults and children, but
Minnesota needs a federal waiver to make this change. Experts at the state and
federal level have said this waiver is not legal, yet the savings are counted in this
bill.
The Senate's State Government and Veterans budget is similarly off-balance. It
counts on $217 million in savings that the state's top, non-partisan financial experts
do not validate. The bill has good intentions, seeking to save money by improving
the way the state purchases goods and improving tax compliance methods. State
agencies, however, said it's unrealistic to believe the state could save anywhere
near $217 million because Minnesota already is a national leader in these types of
efficiencies. In addition, the same bill cuts the state workforce by 15%, eliminating
the support staff that would be needed to actually increase tax audits and
compliance efforts.
Relying on invented numbers is no way to balance the state's budget. As elected
officials, we are charged with keeping very close watch of state dollars to ensure
we have enough money to fund the things we need. I happen to agree with
Governor Mark Dayton that we need new revenue in order to support the things
that Minnesotans expect the state to provide - things like keeping our state parks
open, which is threatened in the environment budget that passed this week.
The Republican majority in the Senate does not believe we need new revenue and
wants to solve this budget through cuts alone. I accept that philosophical difference
of opinion and stand ready to debate each side of that issue in a mature,
responsible manner. It's not at all responsible to budget with invented numbers just
to make the budget look balanced. We deserve an honest conversation.
Governor Dayton has been very clear that he will not accept a budget without
documented, sound numbers to support the savings. I am hopeful that we all can
agree on this basic expectation very soon so we can begin debating an honest
budget and finish our work in the next eight weeks, on time and without the need
for a special session.
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