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Senate Democrats offered a deficit fix Friday
that would drain the state's checking account and go after the
Republican National Convention, E-85 ethanol fuel and other items
close to Gov. Tim Pawlenty's heart.
  
    The Senate Finance Committee pored over spreadsheets detailing
the proposed solution to a projected $935 million shortfall. It
includes emptying a $350 million cash flow account, siphoning $100
million from the state's budget reserve and cutting health, welfare
and other state programs.

      The plan omits a $14 million guarantee for the Republican
National Convention coming to St. Paul in September, a backup for
fundraisers if they miss their goals. Nor would it fund the GOP
governor's proposed Strategic Entrepreneurial Economic Development
program for small businesses in rural Minnesota.

      Other cuts would hit the Positive Alternatives program
encouraging unexpectedly pregnant women to bear their children, a
grant program that helps gas stations install E-85 pumps and layers
of political appointees in state agencies.

      Nearly $200 million would be culled from health and welfare
programs, including trims to the Minnesota Sex Offender Program for
predators confined to treatment by the courts.

      Finance Committee Chairman Dick Cohen, DFL-St. Paul, said there
weren't many places to trim once public schools were taken off the
table. They would get a small increase under his plan.

      The Senate budget would also shield transit and a dedicated
health care account from Pawlenty's cuts and lessen the pain for
colleges, universities and the courts.

      Like the House DFL proposal, the Senate plan would tap the cash
flow account instead of the Health Care Access Fund targeted by
Pawlenty to help fill the gap.

      But Senate Democrats had a lighter touch when it came to the
reserve. Their plan would leave a fatter balance than either the
House or Pawlenty would.

      Cohen said the money might be needed if Minnesota's financial
problems spill into the next budget cycle.

      "It's no secret to anybody here that problems will continue,"
he said. "There's the suggestion that things might be
significantly worse."

      Release of the Senate and House budget blueprints is a prelude
to end-of-session negotiations with Pawlenty.

Gallery

Politics and Government News

2025 Minnesota legislative session

Martiga Lohn

Author

Senate Democrats offered a deficit fix Friday
that would drain the state's checking account and go after the
Republican National Convention, E-85 ethanol fuel and other items
close to Gov. Tim Pawlenty's heart.

Senate Democrats turn to checking account, cuts to fix deficit

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