State House and Senate approve massive budget bills

A sprawling budget bill that would cut funding for health care, higher education and courts, while finding extra money for everything from kindergarten milk money to grants for movie producers passed the state Senate on Thursday night. Hours later, the House approve an equally sweeping measure early today.

Mind-bending in their scope, the bills attempt to fix the state's nearly $1 billion projected budget deficit. The House version also would remove Minnesota from the federal No Child Left Behind program, pave the way for California-style auto emissions standards and ban a chemical commonly found in baby products.

Facing a long partisan fight, the DFL-led House and Senate muscled the bills along over the complaints of Republicans. In the end, the Senate gave its approval on a voice vote, while the House passed its bill 83-49.

"This is a confusing garbage bill," said Rep. Brad Finstad, R-Comfrey. "It's the size of a small novel, and it's got everything under the bigtop, so we'll be here all night."

Even the famed moviemaking duo Joel and Ethan Coen sneaked in, with a $500,000 grant to film their next movie here.

But they're not the only ones who benefit. The House bill would dole out tuition aid to college students and $5 million to beef producers to compensate for cattle lost to bovine tuberculosis.

St. Paul would get to skip out on much of the remaining $37 million it owes for its ice hockey arena and state employees would be guaranteed paid time off to donate blood.

School funding at risk

The No Child Left Behind provision, which does not appear in the Senate bill, could cost the state $219 million in federal funds. Education Commissioner Alice Seagren warned that the loss would "wipe out our federal funding for at-risk students," leaving a hole that would be felt in every school district in Minnesota.

Rep. Sandra Masin, DFL-Eagan, argued against opting out of NCLB, saying the state had no money to replace the lost federal dollars. "We don't have the money to take chances," she said. "Unless there's a net gain, we can't afford to do this."

Both bills flaunt an in-your-face dare to Republican Gov. Tim Pawlenty, gutting his pet initiatives on education and job development and raising $201 million in tax revenues, in part through closing a tax loophole on foreign operating corporations.

Earlier on Thursday, Pawlenty said he still hoped for compromise, but was clearly not happy that the bills "are filled with stuff that defunds my priorities."

Pawlenty said DFLers were "falling right into the stereotype" of raising taxes and out-of-control spending.

"It's not appropriate, it's not responsible and I'm not going to stand for it," Pawlenty said.

House Majority Leader Tony Sertich, DFL-Chisholm, said that Pawlenty's position was contradictory.

"We seem to have a governor who says cut government programs, but not my government programs," Sertich said. Funding for the Q-Comp compensation program, Pawlenty's education initiative to induce school districts to adopt reforms, "was just sitting there," Sertich said. "I'd rather see that money spread out to schools across the state." On No Child Left Behind, Sertich said frustrations in both parties had spilled over, leaving many legislators willing to risk the loss of funds. "Do we just keep jumping through the hoops, teaching to the test?" he said. "What does that cost our students?"

Three-way collision

The House and Senate bills offer similar approaches to ending the budget gap, but they differ greatly in places, setting the stage for a contentious conference committee and difficult negotiations with the administration.

Pawlenty has said he will not support tax-revenue raisers that are not offset with cuts elsewhere, and the House and Senate bills cut differing amounts from the budget. The Senate also stripped out policy proposals that carried no pricetag, while the House bill did not. Both bills would increase per-pupil spending for K-12 schools, but that could be offset by the loss of federal funding if the No Child Left Behind provision survives. The House would raise nursing home workers' pay 2 percent while the Senate version would not.

Senate Finance Committee Chairman Dick Cohen acknowledged the Senate budget bill wouldn't please everyone.

"In a perfect world, I would vote no on this bill," said Cohen, DFL-St. Paul. "But this budget and our circumstances today are not the perfect world."

House Minority Leader Marty Seifert, R-Marshall, said Thursday night that his troops were geared up for "the war of 1812," a play on the file number of the House bill.

"They [House DFLers] are leaving it up to the governor to be the grownup and straighten things out," he said.

DFL leaders maintain that they also have made cuts especially painful to them. The Senate bill, for instance, would cut more than $60 million over the next three years from higher education, while the House bill would trim $11 million from public safety in 2009.

Staff writer Kevin Duchschere contributed to this report. Patricia Lopez • 651-222-1288

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