Gov. Mark Dayton proposed a supplemental budget Tuesday that spends the majority of the state’s $900 million surplus on things Democratic-Farmer-Labor Party members say should be top priorities for the 2016 Legislature.
Focusing on expanding broadband service, tackling racial disparities and providing tax cuts, the $698 million proposal is split between $411 million in one-time spending and $287 million in ongoing funding increases. The proposal also resurrects a gasoline tax hike to fund the state’s transportation needs and leaves about $200 million unspent to protect against future economic downturns.
The DFL governor said repeatedly that his budget proposal is “fiscally responsible.” He said he scaled back his wishes because he fears the possibility of a 2018 recession.
To have his budget priorities move forward, Dayton needs the support of the GOP-led House and DFL-controlled Senate. Top Republicans in both chambers have said they want to give majority of the state’s budget surplus back to taxpayers.
The governor said is willing to change some of the details of his plans. But not what he sees as the need to avoid any spending decisions that will balloon in costs in future years.
“I’m flexible on all of this but I’m not flexible on the principals,” Dayton said.
Some highlights of Dayton’s spending requests:
EDUCATION
$77 million in new spending including money for expanding early learning programs, teacher recruiting, evaluation and training and student support services. This falls far short of Dayton’s ideal of preschool in every public school in the state.
RACIAL DISPARITIES
$100 million to expand workforce programs, college completion and home ownership for minority residents. The governor had proposed spending $15 million on racial disparities issues earlier as a down payment to address the long-running achievement gaps between white Minnesotans and Minnesota of color.
BROADBAND
$100 million to expand high-speed Internet access in rural Minnesota. There is bipartisan support for state spending on broadband access, although the cost and goals of the program are in debate. The funding Dayton proposes, which may be allocated over several years, would boost current spending by tenfold but would be administered similarly to the current grant program.
HUMAN SERVICES
$149 million including mental health care programs and hospital security. Dayton said that spending may not have the allure of other programs but is legally and practically needed.
TAX CUTS
$117 million for tax cuts for child care, education expenses and working families. This is the single largest spending amount in Dayton’s proposal.
HIGHER EDUCATION
$56 million for college affordability and University of Minnesota cyber security and health initiatives.
The budget Dayton proposed on Tuesday only makes tweaks to the state’s current two-year $41.5 billion budget. The next full two-year budget proposal will not come until next year.
Read more details below.
2016 03 15 Governor Supplemental Budget Recommendations Agency and Item…. by Rachel E. Stassen-Berger
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