MINNESOTA LEGISLATURE ROUNDUP: Budget deficit to get attention on Thursday

02/24/2008

By Don Davis,
State Capitol Bureau
Published Saturday, February 23, 2008


ST. PAUL - The Minnesota Legislature's first week brought a much-acclaimed funding measure for arts and outdoors programs.

In Week 2, a transportation funding bill passed. The session's upcoming third week, however, no doubt will be a downer as some predict that a state budget deficit could top $1 billion.

A November outlook put the deficit at $373 million, but legislative leaders now expect something more than twice that. House Speaker Margaret Anderson Kelliher, DFL-Minneapolis, said Friday her intelligence is that Gov. Tim Pawlenty predicts it to be three times the November number.

No one who knows the deficit figure is talking about it to reporters, but all will know late Thursday morning, when the latest budget forecast and economic review will be released.

Legislative leaders say said it appears they will concentrate on making cuts to state programs to balance the budget, but did not rule out attempting a tax increase over Pawlenty's objections.

Assistant Senate Majority Leader Tarryl Clark, DFL-St. Cloud, said senators asked Pawlenty to give them his suggestions for budget cuts within a week of Thursday's budget report. There is no indication Pawlenty will comply with those wishes.

The deficit will permeate everything lawmakers do from here on, Clark said.

More biodiesel

Biodiesel would be used more under a bill authored by Rep. Al Juhnke, DFL-Willmar.

His bill would require the soybean-based fuel to be used in increasingly large percentages until biodiesel is 20 percent of diesel fuel in 2015. The state now requires 2 percent of diesel to be the plant-based fuel.

The proposal passed a House committee and waits Senate committee action. Juhnke said he is working with industries that would be affected by the change to ensure broad support for the proposal.

Recycling required

Stores that use plastic bags would need to provide recycling facilities for them to customers if a Rep. John Lesch bill passes.

The St. Paul Democrat is pushing the measure to require plastic bag makers to work with store owners to recycle the bags.

Bonding coming

A public works funding bill nearing $1 billion probably will be ready for House and Senate debate the first week of March.

Legislative leaders told reporters Friday that work continues in various committees on figuring out what projects to fund. The bill, funded by the state selling bonds, would pay for things ranging from college building repairs to new local bridges.

Managing basins

A bill to help manage water basins is advancing through the House.

A proposal by Rep. Morrie Lanning, R-Moorhead, would establish a board in each of the state's nine basins.

“The bill draws upon the success we've had in the Red River basin by taking a basinwide approach to water management issues,” Lanning said. “Issues like flooding, water quality, water supply and erosion are best approached from a basinwide perspective.”

Davis reports for Forum Communications Co., which owns the Herald.