The Free Press, Mankato, MN

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December 27, 2009

Top 10: State budget roller coaster (7)

Unallotment the word of the year

By Dan Linehan

MANKATO — Special sessions are so 2007. The word of the year in the Minnesota Legislature for 2010 was “unallotment,” a noun referring to the governor’s unilateral budget-cutting powers.

The state’s two-year budget cycle began July 1, and Gov. Tim Pawlenty balanced the budget with spending shifts and cuts totaling $2.7 billion.

The move was immediately met with criticism aplenty.

“It’s really penny wise, pound foolish,” Dr. Greg Kutcher, CEO of Immanuel St. Joseph’s Regional Medical Center said in July.

The spending shifts, combined with the use of stimulus funds that erased 60 percent of the $6.4 billion budget shortfall, led some observers to ask if the balanced budget only delays substantive changes in later years.

“It’s putting Minnesota in a crisis situation,” Rep. Kathy Brynaert, DFL-Mankato, said in July. “... The long run good of the state is not being looked out for.”

Tony Cornish, a Republican representative from Good Thunder, said Democrats were more interested in scoring political points against Pawlenty than in budget solutions.

“Their plan was to blow hot air and blow hot air as long as they could,” he said earlier this month.

The Democrats brought forward a tax bill with tax increases that passed along party lines, which Pawlenty vetoed.

Cornish said Democrats knew Pawlenty would veto the bill and only passed it to put political pressure on the governor for the cuts he would be forced to make.

The governor certainly heard from local governments and advocates unhappy with his cuts.

The unallotment removed $236 million in health and social services cuts, which came on top of $1 billion in reductions on that part of the budget approved during the session.

There was also a $300 million cut to aid for local governments. The program is called Local Government Aid and is given to all but the richest cities in Minnesota to help them provide services they might not otherwise be able to afford.

Minnesota mayors went on tours of the state to warn residents of the service cuts they’d be forced to make. Many cities, counties and school districts used furloughs and some service cuts to respond. But they, too, said even bigger budget headaches are on the way.

December’s budget forecast added to the gloom.

That budget that was supposed to be balanced after the unallotment? Not so much, thanks to sharply reduced income tax collections.

There’s a $1.2 billion deficit for this budget biennium, which began in July.

Pawlenty eased local government’s fears somewhat by saying in December he wouldn’t cut their payment later in the month. But a cut to payments scheduled for next summer is not out of the question.

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