StarTribune.com
budget070209

Home | Politically Connected | State Politics

Pawlenty starts cutting budget to close $2.7 billion gap

$2.7 billion in emergency cuts and shifts to balance the state's budget have begun.

Last update: July 2, 2009 - 9:49 AM

With his signature on a one-sentence letter, Gov. Tim Pawlenty started cutting the state's budget Wednesday.

As expected, on the first day of the new two-year budget cycle, Pawlenty's letter set in motion budget trims and accounting shifts designed to close the state's $2.7 billion budget gap.

Minnesota Management and Budget Commissioner Tom Hanson has said that about half of the changes will happen this year and half in fiscal 2011. The biggest hit will be in health and human services programs, which are among the largest components of the state's budget.

EDUCATION: K-12 schools will suffer a $1.7 billion accounting shift that the administration delays -- but does not cut -- their funding. Some school districts have said they will incur some loss because they will be forced to do short-term borrowing to cover the delay; DFLers say the shift amounts to a cut because the funds aren't likely to be restored at a time of continuing future deficits.

The University of Minnesota and the state colleges system each face cuts of $50 million.

Several programs administered by the Health and Human Services department are being cut by more than $200 million.

LOCAL AID: Aid to local governments also is being cut severely, by about $300 million.

Hanson last week acknowledged that the aid cuts would drive up property taxes in some areas.

BOB VON STERNBERG

Recent State Politics stories

What happens when the indigent lose medical care? - July 2, 2009
What happens when the indigent lose medical care? - Hennepin County officials are making plans to help the 26,000 indigent residents they estimate will lose medical care next spring with the elimination of the state's General Assistance Medical Care (GAMC) program. More

Comment on this story   |   Read all 161 comments   |  Hide reader comments


Subscribe

Current state office holders

Governor: Tim Pawlenty
One of only a few prominent Republicans to win a competitive re-election contest in the Democratic sweep of 2006, Tim Pawlenty is widely seen as politically shrewd and naturally likable.

Minnesota's political giants: Learn more about the men and women who have shaped Minnesota's political history.

Shopping + Classifieds
Cars - Specials

Car Maintenance Specials

Time for an oil change? Save money with coupons from local dealerships. Go now!
Cars: Search

Receive Customized E-mail Alerts

Sign up for My Car Searches & E-mail Alerts.

Win tickets to see Electric Six with The Gay Blades and Millions of Brazilians at First Avenue.

Vita.mn presents Electric Six with The Gay Blades and Millions of Brazilians at First Avenue on Nov. 23.

See all contests