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.

Star Tribune

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

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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

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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.

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