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Pawlenty makes recommends cuts to balance budget

Tuesday, June 23, 2009

By Janet Kubat Willette

Agri News staff writer 

ST. PAUL -- Gov. Tim Pawlenty recommended cuts to local government aid, human services spending and several other programs to bring the state budget into balance.

Pawlenty announced his proposed unalllotment on June 16. The recommendations were presented to the Legislative Advisory Commission on June 18.

The recommendations:

• Reduction of aids and credits to cities and townships, $200 million;

• Reduction of aids and credits to counties, $100 million;

• Reduction of refunds and other credits, $67 million;

• Reduction in human services spending, $236 million;

• Higher education appropriation reduction, $100 million;

• Stage agency operating budget reduction, $33 million;

• K-12 education payment deferrals and adjustments, $1.77 billion; and

• Additional revenues, $169 million.

Legislator input as well as input from others will be considered as Pawlenty prepares his final plan, expected later this month.

The governor's proposed reductions include a reduction of 2.25 percent to most state agency operating budgets.

Minnesota agriculture commissioner Gene Hugoson said "options are currently being explored for making the 2.25% reduction."

Hugoson couldn't be more specific, but he hopes the decision will be made within the next two weeks.

Pawlenty protected the smallest cities and counties from local government aid cuts. The five counties with a population of less than 5,000 are exempt from cuts as are cities and townships with a population less than 1,000 and an adjusted net tax capacity per capita less than the statewide average.

"Families and businesses are battling their way through this prolonged economic downturn by reexamining their budgets, cutting expenses and tightening their belts," Pawlenty said. "State government must do the same."


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