The budget problems facing Minnesota school districts are about to get significantly worse, Senator Dan Skogen, DFL-Hewitt, said today, responding to Governor Pawlenty's plan to delay $1.8 billion in state aid to school districts this biennium.

"The governor has characterized his plan as a funding 'shift,' but in reality this is a serious spending cut to Minnesota schools," said Senator Skogen.   "This is the last thing our schools need at a time like this. Districts did not receive any new funding this year, and now face what essentially amounts to a 27 percent cut in school payments."

The Pawlenty cuts are state aid payment delays to school districts. While the state currently delays payments on a 90/10 basis, Pawlenty's proposal would be the highest in history, paying districts only 73 percent and delaying the remaining 27 percent. This could cause serious cash flow problems for schools, forcing them to borrow or seriously deplete reserves.  

"Experts have told us that it could cost districts $33 per student in interest costs if they are forced to borrow as a result of the payment delay," Senator Skogen said. "Even if they are able to tap into reserves, Pawlenty's plan would cost districts $27 per student in lost interest. Every single district in Minnesota is going to be impacted by the governor's plan."

The education cuts could be as deep as 36 percent, depending on whether Pawlenty has the authority to shift school districts' property tax revenues. Various legislative fiscal experts have stated that the governor doesn't have the authority to go-it-alone on this shift.

The Pawlenty education cuts would also contribute to an enormous budget deficit of $7.3 billion for the 2011-2012 budget cycle.

"This session, we faced a historic $6.4 billion deficit, which necessitated dramatic cuts in state spending, even though we were able to offset some of the problem with federal stimulus dollars," said Senator Skogen.  "We won't have those federal dollars in 2011, and we will face a deficit--due in large part to the governor's spending 'shift'--that totals almost 24 percent of the state's entire budget of $31 billion. Rather than working with the Legislature on a long-term budget solution, the governor has decided to keep kicking the can down the road, leaving a bigger and bigger problem for us to solve in the future."

For more information, contact Senator Skogen's Capitol office at 651-296-5655 or sen.dan.skogen@senate.mn.

State Senator Dan Skogen, DFL-Hewitt, said today that under Governor Tim Pawlenty's proposed unallotments, property taxes and college tuition will rise, hospitals and nursing homes will see deeper cuts, and local school districts may be forced to borrow to make ends meet. Pawlenty announced his intentions to drastically reduce funding for aid to cities and counties, cut nursing homes, and to shift $1.8 billion in school funding at a press conference on Tuesday.  

"The Legislature sent the governor a balanced budget that was fair to all Minnesotans, preserved our key priorities, and made strategic budget reductions to help us weather the current fiscal storm," said Senator Skogen. "By rejecting these offers and failing to work constructively with legislative leaders, the governor has put himself in a position to utilize his unallotment authority to unilaterally cut hundreds of millions of dollars out of the state budget. The governor decided he didn't want to do his job and negotiate a common-sense budget, so now he's continuing his attack on the things that make our state great."

Unallotment is a little-used power that was put into law in 1939 that allows the governor to cut funding for state expenditures. It was originally designed to aid in fixing small, unanticipated budget deficits. The power has been used only six times in 70 years, with Pawlenty using it three of those times.   The governor's proposed $2.7 billion unallotment is larger than all five of the previous unallotments combined, and nearly 10 times more than the largest.

The governor's proposed unallotments include:

•  $300 million in Local Government Aid and County Program Aid, primarily used for local public safety and essential services;

•  $1.77 billion K-12 education funding shift that may cause some schools to have to borrow to bridge funding;

•  $51 million decrease to the renters' refund program, resulting in a tax increase for renters;

•  $236 million reduction of health care, including eliminating the General Assistance Medical Care program, which provides health care for the sickest and poorest Minnesotans, one and a half months sooner than would have happened as a result of Pawlenty's line-item veto;

•  $100 million cut to the Minnesota State Colleges and Universities system and the University of Minnesota; and

•  $33 million in cuts to most state agency operating budgets.

The cuts to aid for cities and counties are particularly troubling to Senator Skogen. Below is the level of funding some local communities will lose as a result of the governor's proposed unallotments in 2009 and 2010.

 "By threatening to cut aid to cities and counties even further, the governor's unallotment plan will undoubtedly lead to higher property taxes, reductions to local police and fire protection or closures of quality-of-life amenities, such as libraries and recreational facilities," said Senator Skogen. "The governor continues his longstanding tradition of pushing the tough decisions to cities and counties so he can have his hands clean. Whether its police, fire or basic services like snowplowing, these cuts are going to have an impact on our communities."

For more information, contact Senator Skogen's Capitol office at 651-296-5655 or email sen.dan.skogen@senate.mn.

With just days left in the 2009 Legislative Session, the governor presented the Legislature with two equally unappetizing choices: either lawmakers could do things the governor's way, or he would do things his way. Rather than negotiating with the 201 men and women elected to represent the needs of every Minnesotan in every corner of our diverse state, the governor decided to move forward on a "go-it-alone" strategy that has serious implications for every part of our state.

Over the course of the legislative session, the governor was offered--and summarily rejected--numerous offers to work toward a compromise budget solution. He was sent a balanced budget by the Legislature that was fair to all Minnesotans, preserving many of the things that have made our state what it is, while making strategic reductions to help us weather the current fiscal storm.

By rejecting these offers and failing to work constructively with legislative leaders, the governor has put himself in a position to utilize his unallotment authority to unilaterally cut more than $2 billion out of the state budget. Now, after summarily vetoing the Legislature's balanced budget plan, the governor is again making a grand show of seeking "legislative advice" before going forward with unallotment decisions that he and his hand-picked cabinet will make on their own.

If the governor is serious about seeking advice, it is important that he makes the unallotment process as open and transparent as possible. The cuts he will make will impact each and every Minnesota community. His cuts to health care could close rural nursing homes and hospitals. Without permanent revenue and the statutory authority to pay back payment shifts, any shift unilaterally executed by the governor's unallotment authority will result in a direct cut to schools. Cuts to fire and police protection, as well as other local services, will surely result from a steep unallotment of local aid, not to mention large spikes in local property taxes.

I have already sent the governor a letter asking that he sit down with legislators and local government leaders from across the state before making any unallotment decisions. In the letter, I offered to organize and host a roundtable discussion between the governor and local government officials from across the state at a time and location of his choosing.   In the letter, I promised the meeting would include bipartisan participation from local leaders representing every region of the state. If the governor is honestly seeking input on his unallotment decisions, I can't think of a better way of soliciting advice than by sitting down face-to-face with the leaders who represent the communities that will be impacted by his decision.   To date, I have yet to receive a response.

After months of statewide town hall meetings and comments offered to the Senate budget website, legislators know what Minnesotans want. They understand the need to provide balance and share the sacrifice. Apparently, the governor wasn't listening then. Maybe he'll listen now. Citizens who want to voice their opinion on what actions the governor should take to balance the state budget are encouraged to submit comments via e-mail at:   budgetideas@state.mn.us.  

Senator Dan Skogen, DFL-Hewitt, said today he was disappointed that the 2009 Legislative Session ended without a budget deal with the Governor, but was proud of the Legislature's efforts to responsibly balance the state's historic $6.4 billion deficit.

"What we saw during the 2009 session was two very different visions for how the state should respond to the most difficult budget deficit in a generation," said Senator Skogen.  "In January, the governor released a budget proposal that relied on one-time accounting shifts and expensive borrowing schemes to mask the real problems facing our state. In response, the Legislature laid out a more responsible approach, which sought even more cuts than proposed by the governor, along with permanent revenue increases to bring long-term stability to the state's finances. Unfortunately, the governor refused to even negotiate with lawmakers on a plan that could have protected schools, nursing homes, and hospitals."

The 2009 Legislative Session met under the cloud of the biggest deficit in Minnesota's history. At $6.4 billion, Minnesota's deficit was one of the largest per-capita deficits in the nation. When adjusted for population, it was even larger than the massive $41.5 billion deficit facing California. Per capita, California's deficit was $1,129. Minnesota's is $1,226 - nearly a hundred dollars higher for every man, woman, and child in the state.

While the scope of the state's budget deficit required lawmakers to make many difficult funding decisions, Senator Skogen said he was pleased that several initiatives he worked on were signed into law. This includes:

•  A $300,000 appropriation to fund the design and construction of a highway overpass over U.S. Hwy. 10 and the Burlington Northern Santa Fe Railroad tracks in Staples. City officials say building an overpass is integral to public safety in the area, as emergency vehicles often wait considerable periods of time when trains are passing through the intersection. In addition, the project will provide a north-south corridor between Todd and Wadena counties.   Federal funding is available to help pay for the project, but is contingent on the city securing a financial commitment from the state.

•  A compromise proposal to allow the use of mini trucks on county, city, and township roads, if approved by the local authority. Mini trucks are small, compact pick-up trucks which feature four-wheel drive, high fuel efficiency, and safety features similar to a full-size automobile. They are commonly used on farming and hunting land, but are currently prohibited on Minnesota roads.  

•  The creation of special Gold Star motor vehicle license plates for family members of military service personnel who have died in active military service. Senator Skogen carried this measure in the Senate, and was able to include it in an omnibus veterans' bill.

•  Establishment of a new rebate program to help homeowners and small businesses to undertake wind, solar, and geothermal projects.

•  Approval of nearly $400 million for the environment, wildlife habitats, and arts and cultural heritage projects, funded by the voter-approved Legacy Amendment. Senator Skogen chaired a Senate subcommittee on the arts and cultural heritage portion of the spending, and was successful in directing nearly three-quarters of the money for regional art councils and statewide historic sites.

"This was an extremely difficult session, and many tough decisions had to be made," said Senator Skogen.  "While I'm disappointed we couldn't come to terms on a long-term budget balancing solution with the governor, I am pleased we were able to move forward on some important initiatives for our region."

For more information, contact Senator Skogen's Capitol office at 651-296-5655 or sen.dan.skogen@senate.mn.

Senator Dan Skogen (far right, first row) meets with sixth-grade students from Verndale Public School.

State Senator Dan Skogen, DFL-Hewitt, recently met with several sixth-grade students from Verndale Public School. The students had traveled to St. Paul to tour the State Capitol building and learn about the Minnesota Legislature.

Morning Son Christian School students visit the Minnesota State Capitol in St. Paul.

State Senator Dan Skogen, DFL-Hewitt, recently met with a group of sixth-grade students from Fergus Falls’ Morning Son Christian School. The students had traveled to St. Paul to tour the State Capitol building and learn about the Minnesota Legislature.

Senator Dan Skogen (far left, third from front) meets with students from New York Mills Elementary School.

State Senator Dan Skogen, DFL-Hewitt, recently met with dozens of sixth-grade students from New York Mills Elementary School.   The students had traveled to St. Paul to tour the State Capitol building and learn about the Minnesota Legislature.

A bill to fund the design and construction of a highway overpass over U.S. Hwy. 10 and the Burlington Northern Santa Fe Railroad tracks in Staples is heading to the governor's desk, after receiving the support of both the House and Senate on Wednesday. A $300,000 appropriation for the project is contained in the Legislature's compromise bonding bill, which negotiators reached agreement on late Tuesday evening.

"This is an important project for the region, and I'm pleased we were able to get it included in the Legislature's final capital investment package," said Senator Dan Skogen, DFL-Hewitt, who chief-authored legislation requesting the funding. "Building this overpass will improve the north-south flow of traffic through the region, and make it easier for police and ambulances to respond to emergencies."

The City of Staples, in partnership with Todd County, is coordinating the effort to build the overpass. City officials say building an overpass is integral to public safety in the area, as emergency vehicles often wait considerable periods of time when trains are passing through the intersection. In addition, the project will provide a north-south corridor between Todd and Wadena counties. Federal funding is available to help pay for the project, but is contingent on the city securing a financial commitment from the state.

Pictured: Senator Dan Skogen (far left, third from the front) meets with students from Verndale Elementary.

State Senator Dan Skogen, DFL-Hewitt, recently met with dozens of students from Verndale Elementary School. The students had traveled to St. Paul to tour the State Capitol building and learn about the Minnesota Legislature.

Pictured: Senator Skogen (back right) meets with fifth and sixth-grade students from St. Paul’s Lutheran.

State Senator Dan Skogen, DFL-Hewitt, recently met with several fifth and sixth-grade students from St. Paul’s Lutheran School located in Perham. The students had traveled to St. Paul to tour the State Capitol building and learn about the Minnesota Legislature.

Minnesota State Senator Dan Skogen, DFL-Hewitt, today called on the governor to work with the Legislature to find a balanced approach to fixing the state's $6.4 billion shortfall and end the legislative session on time. With the May 18 constitutionally mandated deadline to adjourn looming, Senator Skogen said he believes that a compromise can be found that will both protect the most vulnerable citizens in the state and position Minnesota for a strong economic recovery more quickly than the rest of the nation from the current recession.

"It is time to put aside politics and start working together to find a compromise that makes sense for our state," said Senator Skogen. "Recent polls have shown that Minnesotans understand the need for a long-term, balanced approach of spending cuts, one-time federal dollars, and revenue increases, and that's what the Senate has proposed from the start. We need a common-sense solution that will help prevent hospitals from closing, retain health care for working families, and keep our streets safe by funding public safety."

The details of several of the smaller budget bills have already been negotiated with the Executive Branch, but the larger bills, including the E-12 Education and Health Care bills, are yet to be finalized. The biggest differences remain in the area of health care, where the governor wants to take away health insurance coverage for 113,000 Minnesotans, raid the dedicated Health Care Access Fund (HCAF), and pass deep cuts to hospitals that are already struggling to stay open.

"We can't balance this historic budget deficit on the backs of working families, seniors, and those in need," said Senator Skogen. "Minnesotans are facing tough times, and dropping people from health insurance and closing hospitals and nursing homes will take us in the wrong direction during this critical period."

When lawmakers convened the 2009 Legislative Session, it was amidst one of the most challenging eras in the state's history. Minnesota lost over 60,000 jobs in 2008, and unemployment had risen to 6.6 percent, compared to a rate of less than 4 percent in the summer of 2006. The troubles facing Minnesota have only gotten worse in 2009. An additional 32,000 Minnesotans lost their jobs in January and February, and the unemployment rate has spiked to over 8 percent, its highest point since May of 1983.   

In November, legislators learned that they would be facing an enormous deficit, and in February that deficit grew to $6.4 billion. With the session at its mid-point, the Legislature continues to work efficiently to finish the job of balancing the state's budget before the constitutionally mandated adjournment in May. According to Senator Dan Skogen, DFL-Hewitt, the Senate DFL caucus has taken the fiscally responsible approach to solving the state's budget deficit with a budget plan that is both balanced and fair to Minnesotans.  

"Rather than using shifts and one-time spending to hide the real problems facing the state, the Senate has advanced a budget proposal that is fair, equitable, and positions the state to succeed once the financial storm is weathered," said Senator Skogen.  "Unlike the governor's proposal, which leaves the state a $2.6 billion deficit after 2011, the Senate solution provides for a balanced budget for the state through 2013. This is long-term, forward-thinking budget solution the state needs during these difficult times."

The Senate plan calls for a 7 percent proportional cut for each of the budget areas; however, those reductions are somewhat blunted by federal funds in the American Recovery and Reinvestment Act (ARRA) of 2009 in several key areas, including education, public safety, and health care. Reductions in education are further eased by the elimination of several mandates that will free-up resources to allow school districts to reinvest those dollars back into the classroom.

"The Senate plan contains reductions in every area of the state's budget, but we've also brought forward cost-cutting reform proposals to help reduce the impact of the cuts," said Senator Skogen. "In education, I carried a proposal that eliminated several mandates that will reduce costs for school districts and help put more resources into the classroom."

While balancing the budget is the primary duty this session, the Legislature is also moving forward on many issues of importance to Minnesotans.    Several bills that address a variety of issues stemming from the economic downturn have already been signed into law by the governor. Those bills extend unemployment benefits, ensure that any budget passed by the Legislature and enacted by the governor be balanced for the long-term, and provide tax relief to Minnesotans. The Senate has passed several bills to create jobs in the state, including a bonding bill with a focus on creating jobs now by fixing the state's infrastructure and investing in flood mitigation.  

In addition to carrying the education mandate reduction bill, Senator Skogen has advanced several important provisions this session, including:

•  A bill to provide a tax credit to Minnesotans who install a small wind turbine to power their home or small business;

•  A $300,000 appropriation for the design and construction of a highway overpass over U.S. Hwy. 10 and the Burlington Northern Santa Fe Railroad tracks in Staples, which is currently part of the Senate's Omnibus Bonding Bill; and

•  A prohibition on the retail sale of recalled toys.

"While I believe we've had a successful start to the session, there is still a substantial difference between the Senate's plan and the governor's position," said Senator Skogen. "I know that we will continue our strong bipartisan tradition and collaborate with the House and the governor to guide our state through the rough times ahead. My goal is to end this session by putting Minnesota on the path to a stronger and more prosperous future."

On Monday, April 6, the Minnesota Senate gave preliminary approval to a bill that relieves cities, counties, and school districts from dozens of state-imposed mandates. The bill was based on a session-long effort to identify costly mandates that could be repealed without jeopardizing the safety, efficiency or effectiveness of government services. Senator Dan Skogen, DFL-Hewitt, served as the Senate's lead on the removal of unnecessary mandates on school districts.

"This session, I have worked closely with education groups from across the state on compiling a list of mandates that school districts face," said Senator Skogen.  "What we found were many different hoops that schools are forced to jump through that either aren't achieving their original purpose or are simply outdated. By removing these mandates, we put more control in the hands of local school board members and allow more education funding to go directly into the classroom."

Notable mandates eliminated or altered in the bill include:

•  Report elimination:  The bill reduces numerous report requirements for districts including: "Annual Report on Curriculum, Instruction and Student Achievement," "Revenue, Expenditure, Fund Balances and Other Relevant Budget Information" and the Review and Comment Report from the Commissioner of Education. Summaries (not the full reports) must be published in local newspapers.

•  Review, comment and consultation:  This provision increases the estimated cost of a capital project from $250,000 to $500,000 requiring a district to consult with the Commissioner of Education.

•  Community Education Director:  Increases the population threshold from 2,000 to 4,000 for communities eligible for an exception for the requirement to have a licensed community education director for local programming.   The provision includes a licensed teacher eligible to serve in that capacity if the community meets the population threshold.

•  Safe Schools Levy:  Repeals the maintenance of effort requirement that a district's total spending on services related to counselors, nurses, social workers, psychologists, and alcohol and chemical-dependency counselors is not less than expenditures in the previous year.

"This is a difficult time for our state, and the need to 'get back to basics' has never been higher," said Senator Skogen. "Although this legislation does not save the state money, it will have a major impact on local units of government and schools, saving both time and money."

For more information, contact Senator Skogen at 651-296-5655 or sen.dan.skogen@senate.mn

On April 1, the Minnesota Senate voted to approve legislation that addresses concerns over changes made in 2008 to the state's Green Acres property tax relief program. The bill will now head to the governor for final approval.

Last year, the Legislature made several significant reforms to the Green Acres program, prompted by a legislative auditor report which cited several inconsistencies and inappropriate uses occurring within the program. Most notably, the report suggested some landowners were collecting tax benefits on property that wasn't truly being used for agricultural purposes.

"Unfortunately, while the reforms passed last session were well-intentioned, some landowners have raised concerns that the new language did not give prominent consideration to the legitimate uses of the program," said Senator Dan Skogen, DFL-Hewitt.  "For example, landowners have said the new law is hampering family transfers of land and that the tax penalties are too severe for land no longer qualifying for Green Acres treatment. There also have been concerns about classifications for nonconforming agricultural land being too stringent."

The Green Acres update passed this week will allow productive agricultural land over ten acres to receive preferential tax treatment. Land less than ten acres that was previously eligible for and enrolled in Green Acres and that is attached to a larger parcel still may qualify for the program as well. Those with land no longer conforming to the agricultural classification will have four full years, until 2013, to withdraw their land from the program. At that time, only the three-year tax pay-back penalty that all Green Acres participants agreed to at the time of enrollment will apply. The seven-year pay-back period from the 2008 law has been eliminated. These landowners also may take advantage of a time period until January 1, 2010, in which they may withdraw their nonconforming land from Green Acres completely penalty-free.

Additionally, this bill ensures lands enrolled in the Reinvest In Minnesota or Conservation Reserve programs again will be eligible for Green Acres treatment if it was in agricultural use before enrollment and, in the case of RIM land, it is not subject to a perpetual easement. Land transfers to a son or a daughter of the owner will not initiate reenrollment, nor will the death of a spouse. To further clarify and strengthen how nonconforming parcels should be valued, the new bill also states Class 2a agricultural property must include certain ancillary acreage such as ditches, and it adds ravines and rock piles to this list.

Finally, a new program is created for land that may no longer qualify for Green Acres: the Rural Preserve Program. The program would allow enrolled land to be valued the same as 2a agricultural property and receive much the same tax benefits as the Green Acres program offers. If an agricultural homestead is enrolled in the program, no more than 50 percent of the total acreage enrolled may be Class 2b property. Assessors are directed to not consider the influences of commercial, industrial, residential or seasonal recreational property when determining the value of the property.

The program will be open to land of at least ten acres and eligibility will require owners to develop a conservation management plan for the land.   The land must be enrolled for a minimum of ten years, and the owner must sign a covenant agreement with the county assessor. At the time of withdrawal, the same three-year tax pay-back that exists under Green Acres will apply, and participants must wait three years before parcels may be reenrolled.

If any landowner has already paid additional taxes on property because of the 2008 changes, the property owner will receive a refund from the county.

"Preserving Minnesota's farmland and other open spaces is an important goal," said Senator Skogen.  "With this bill, the Senate has created two separate programs for protecting our open land: the Green Acres program will continue to preserve agricultural land, and the Rural Preserve Program will be a shelter for other open spaces throughout the state. I think we found a good compromise on this complicated issue, and I'm pleased we were able to address so many of the concerns we heard from the agricultural community."

For more information, contact Senator Skogen at 651-296-5655 or sen.dan.skogen@senate.mn

Minnesota Senate Democrats have spent much of March finalizing a proposal to solve the state's $6.4 billion budget deficit. State Senator Dan Skogen, DFL-Hewitt, said the Senate's plan relies on public input received during town hall meetings conducted across the state this winter.

During those meetings, Minnesotans ranked public safety among the state's most important priorities and said property taxes should be kept in check.   Senator Skogen said he is concerned that the governor's budget proposal conflicts with those priorities by jeopardizing public safety, slashing state police and fire aid, and raising property taxes.

"Obviously, given the size of the state's budget deficit, we're going to have to make some very difficult choices," said Senator Skogen. "That being said, I'm fearful that the governor's plan shifts a substantial portion of the budget problems facing our state onto local governments. As we've seen previously when the governor has utilized this approach to balance earlier deficits, this approach raises property taxes and reduces the number of police officers and firefighters in local communities."

Governor Pawlenty recently released his revised budget recommendations based on a new economic forecast that predicts a $6.4 billion deficit over the next two fiscal years. In response, Senator Dan Skogen, DFL-Hewitt said today that he believes the governor's proposal relies too heavily on cuts to programs that serve the elderly, the disabled, and the unemployed.

"In order to resolve a budget deficit of this magnitude, we will need to take a balanced, thoughtful approach to scaling back government in every area," said Senator Skogen.  "I do not believe we should take the governor's approach, which would focus cuts on hospitals, nursing homes, and critical health care programs, while using borrowing and shifts to delay half of the problem until after the next election cycle."

Senator Skogen added that the governor's health care plan alone accounts for a loss of nearly 11,000 private-sector jobs and 113,000 people losing their health insurance coverage, including thousands of children.

Many of the governor's recommendations for cuts in 2010-2011 have been shifted to 2012 because nearly $2 billion in federal stimulus funding is at stake. In order to qualify for this funding, Minnesota cannot reduce eligibility levels for its public health care programs. However, the governor's proposed budget still cuts state spending for Medical Assistance, which will result in a loss of nearly $800 million in federal funds.

"Governor Pawlenty continues to use one-time gimmicks and shifts to balance the budget without regard for the economic implications and future prosperity of our state," said Senator Skogen.  "By passing up on Medical Assistance funds, his plan would send our tax dollars to Wisconsin, Iowa, and the Dakotas."

Senator Skogen said the Senate's budget proposal would use proportional cuts to all areas of the budget, while enacting health care reforms that will reduce costs and save money. Last year, the Legislature passed a comprehensive health care reform package that focused on changes to the health care payment and health care delivery system as well as reduced health care administrative costs.

On Tuesday evening, the Senate Capital Investment Committee advanced a $360 million bonding package aimed at funding critical, shovel-ready regional infrastructure needs, while creating thousands of new jobs in the state. Included in the bill is a $300,000 appropriation for the design and construction of a highway overpass over U.S. Hwy. 10 and the Burlington Northern Santa Fe Railroad tracks in Staples.

"I'm pleased that we were able to get this important regional project included in the Senate bonding proposal," said Senator Dan Skogen, DFL-Hewitt, who chief-authored legislation requesting the funding. "Building this overpass will improve the north-south flow of traffic through the region, and make it easier for police and ambulances to respond to emergencies."

The City of Staples, in partnership with Todd County, is coordinating the effort to build the overpass. City officials say building an overpass is integral to public safety in the area, as emergency vehicles often wait considerable periods of time when trains are passing through the intersection.   In addition, the project will provide a north-south corridor between Todd and Wadena counties. Federal funding is available to help pay for the project, but is contingent on the city securing a financial commitment from the state.

State Economist Tom Stinson, testifying before the Senate Capital Investment Committee, said that Minnesota will need more than the federal stimulus to get real economic recovery underway and get people working again. He said funding for projects that can begin almost immediately, such as repair and renovation of existing facilities, would be a positive step, and added that delaying construction for a year or two will simply delay the problem.

The legislation calls for a total of $367 million invested in projects throughout the state. Of that, $329 million will come from the state in the form of general obligation bonds, and the rest will be user-financed. The lion's share of funding--nearly $150 million--will go for asset preservation and other improvements to higher education facilities within the University of Minnesota system and the Minnesota State Colleges and Universities system.

Experts estimate that this legislation will mean the creation of more than 3,600 jobs in the construction phase of these projects, and more ongoing jobs once renovations and facilities are completed. In addition, with the construction business suffering through the same slowdown plaguing the overall economy, and the prices of building materials dropping to levels not seen in many years, these projects can be completed at significant savings to Minnesota taxpayers.

"This package is all about generating economic development and spurring job growth at a time when our economy is at its worst point since World War II," said Senator Skogen. "In the near term, these investments will bring thousands of new construction jobs, while in the long-term they will support sustainable economic growth throughout the state. With the spring construction season rapidly approaching, it's important to get this funding approved, get local workers hired, and get shovels in the ground as soon as possible."

MN budget deficit grows to historic proportions - 3/5/09

On Tuesday, Minnesota's financial experts released an updated 2010-2011 state budget forecast which revealed the state's fiscal picture had deteriorated considerably in recent months. In November, economists predicted the state would face a $4.8 billion shortfall in the coming biennium. The updated version on Tuesday showed the projected deficit had actually grown by 33 percent in just the past three months and now reaches $6.4 billion.

"In November, we thought we were facing a once-in-a-generation budget deficit," said Senator Dan Skogen, DFL-Hewitt.  "It now turns out that the November projections were actually optimistic. Tuesday's forecast has provided an unsettling reminder about how vast the economic problems facing our state have become, and the magnitude of the challenge facing us as we work to get the state's economy back on track."

The shortfall in state revenue has been driven by dramatic job loss in the past year, as Minnesota employers shed 75,000 jobs since January 2008.   These job losses have already surpassed the losses incurred during both the 1990-91 and 2001 economic downturns. By the end of 2009, experts predict about 123,000 total jobs could be lost in Minnesota, which would exceed the losses experienced during the twin-recessions of the early 1980s.

Earlier this week, the Minnesota Green Jobs Task Force, a bipartisan coalition of lawmakers, business leaders, state agency officials, policy experts, and citizens, unveiled a comprehensive list of legislative recommendations to retain and grow more than 70,000 jobs in Minnesota.   According to Senator Dan Skogen, DFL-Hewitt, the strategies contained in the task force's recommendations have the potential to bring new economic development to Greater Minnesota and revitalize the state's rural economy.

"As Minnesota and the nation move towards renewable energy and alternative fuels, we need to be looking long-term at how small cities and towns can compete in the 21 st Century," said Senator Skogen. "From the manufacturing wind turbines, to weathering homes and businesses, to using Minnesota crops to fuel our transportation system, there are tremendous opportunities for job growth in Greater Minnesota stemming from the green economy."

The task force's recommendations contained a wide variety of new proposals focused largely on renewable energy, green products, green services, and environmental conservation sectors, including:

• Funding biofuel research and development;
• Promoting locally owned renewable-energy generation;
• Working with the state's colleges and universities and agricultural research institutions to identify opportunities for green job growth;
• Providing interest-free or interest-deferred loans for renewable-energy projects;
• Offering tax incentives to private investors supporting new and expanding green employers;
• Investing in energy-efficient wastewater treatment plants; redeveloping brownfields; and weatherizing homes, schools, and businesses; and
• Training workers and students in the necessary skills to compete for green jobs in manufacturing, building, engineering, transportation, and conservation.

In addition, the task force recommended the formation of a Green Enterprise Authority to serve as a "one-stop shop" to assist new and established businesses find success in Minnesota's growing green economy.

"The current economic recession is having a troubling impact on many rural communities," said Senator Skogen. "While we know recovery won't happen overnight, that shouldn't stop us from laying the groundwork for a more prosperous and productive future economy. The strategies laid out by the Green Jobs Task Force will help give Minnesota workers the necessary skills to compete for good-paying jobs and help businesses in high-growth industries thrive."

The Green Jobs Task Force was created by the Legislature in 2008 in order to create a statewide action plan to "optimize the growth of the green economy." The members, who were appointed by the Legislature and governor, spent the last six months traveling the state to collaborate with Minnesotans in the private sector, academic leaders, and others about their needs in order to generate green business. The group will be releasing an additional set of recommendations regarding the state's education and training needs in the coming weeks. More information about the task force, including its complete action plan and market analysis, is available online at www.mngreenjobs.com.

On Tuesday, February 10, Senator Dan Skogen, DFL-Hewitt, presented legislation to provide a tax credit to Minnesotans who install a small wind turbine to power their home or small business. Senator Skogen was joined by Dan Mattfeld, general manager of Residential Wind Power Inc. of New York Mills, who testified on behalf of the proposal.

"Across the country, policymakers are seeking ways to expand the use of renewable and clean energy," said Senator Skogen.  "What better way to accomplish this goal than to support home and business owners who are willing to invest their own money in installing a wind turbine on their property and voluntarily reducing their use of traditional electricity sources?"

Senator Skogen presented his bill before the Senate Energy, Utilities, Technology and Communications Committee. Under the proposal, a home or business owner purchasing a ten kilowatt or smaller turbine would receive a tax credit equal to 35 percent of the total cost of installation. The credit would be capped at $2,500.            

According to Mattfeld, whose company has been selling and installing small wind turbines in the region for three years, the tax credit proposal would make switching to wind power much more feasible for area residents.

For more information, contact Senator Skogen at 651-296-5655 or sen.dan.skogen@senate.mn

Senator Dan Skogen, DFL-Hewitt, is urging citizens, business owners, and local government officials to attend one of several Senate committee hearings being held throughout the region on Feb. 19 and 20. Lawmakers will be visiting communities throughout the state to get input on the governor's budget recommendations and listen to the public's ideas to address the state's $4.8 billion budget deficit.  

"In order to balance a budget deficit of this magnitude, we are going to have to have a thorough and thoughtful discussion about the role and size of state government," said Senator Skogen. "In order to set spending priorities that reflect the values of Minnesotans, it is important that we take the time to listen to the thoughts and concerns of residents across the state."

Meetings in northern and west-central Minnesota include:

Thursday, Feb. 19
•  St. Cloud: 6 p.m.
St. Cloud City Hall Council Chambers
400 2nd St. S., St. Cloud
•  Willmar: 6 p.m.
Kennedy Elementary School
824 7th St. S.W., Willmar

Friday, Feb. 20
•  Alexandria: 2 p.m.
Alexandria City Hall
704 Broadway, Alexandria
•  Bemidji: 3:30 p.m.
Bemidji State University
American Indian Resource Center Gathering Place
1620 Birchmont Dr., Bemidji
•  Brainerd: 10:30 a.m.
Washington Educational Services Building, Boardroom
804 Oak St., Brainerd
•  Little Falls: 9:30 a.m.
Morrison County Government Center, Garden Level Meeting Room
213 1st Ave. S.E., Little Falls
•  Moorhead: 12:30 p.m., the Senate Tax Committee will meet at
Minnesota State University Moorhead, Comstock Union
1104 7th Ave. S., Moorhead

For more information, contact Senator Skogen at 651-296-5655 or sen.dan.skogen@senate.mn

Last week, Governor Tim Pawlenty released his proposal to balance the state's projected $4.8 billion budget deficit. Senator Dan Skogen, DFL-Hewitt, said today that while the governor's proposal contained several promising ideas, he is concerned over its impact on Minnesota families.

"Resolving a $4.8 billion budget deficit will require lawmakers to make many difficult decisions," said Senator Skogen.  "I look forward to working with my legislative colleagues and the governor in the coming months as we move through the budget-setting process. As a state, we need to set clear priorities and realistic goals."

Senator Skogen said one of his biggest concerns over the governor's budget was in the area of health care. Under Pawlenty's budget, more than 100,000 Minnesotans - mostly working adults who do not receive insurance through their employers - would lose health care coverage, including an additional 6,000 children currently covered by MinnesotaCare.

"There are hundreds of families in our region who rely on MinnesotaCare and similar programs to gain access to needed medical care," said Senator Skogen.  "As working families continue to struggle under this current recession, I'm wary of any proposal that would take away their health care."

In addition, Senator Skogen noted that the governor's proposal includes a significant cut to higher education programs, which would increase tuition costs at the state's colleges and universities.

"For decades, Minnesota's economic success was built around our first-class education system and productive workforce," said Senator Skogen.  "If we want to make sure Minnesota remains competitive in the future, we need to start by making college more affordable for Minnesota students and giving our institutions the resources they need to attract top talent from around the globe.

Senator Skogen also said the governor's reliance on cuts to local government aid (LGA) is troublesome. Pawlenty's budget proposal calls for a $245 million cut in local government aid and a $125 million cut in aid to counties.

"In 2003, the governor successfully passed enormous reductions in local government aid through the Legislature, which predictably resulted in significant property tax hikes across the state," said Senator Skogen. "Since I entered the Legislature in 2006, I've been working to undo the damage caused by those previous cuts. I certainly don't think Minnesotans want to see another round of property tax increases, especially given the state of our economy."

Senator Skogen added that despite having some serious concerns about the governor's budget proposal, he also sees areas of agreement.

In response to rising unemployment and warnings that the state faces the longest recession of the post-World War II period, Senator Dan Skogen, DFL-Hewitt, said today that economic recovery efforts would top the Legislature's agenda during the 2009 session.

"This is a very difficult time for Minnesota families," said Senator Skogen.  "Every day, we hear reports of new layoffs, longer gaps between employment for displaced workers, and an increasing number of people abandoning their job search out of frustration. As legislators, our focus must be on growing our way out of this recession, and bringing new jobs to Minnesota."

Senator Skogen said that the first step in this process would be to partner with the federal government on President-elect Barack Obama's recovery plan, which is projected to create or preserve up to four million jobs in the United States. The Senate's first bill introduced this session--Senate File 1--is focused on maximizing Minnesota's participation in the economic recovery package, which is expected to be passed by Congress in the coming weeks.

"We have already begun reaching out to the state's Congressional Delegation in an effort to learn more about the federal recovery plan, and to make sure Minnesota is positioned to capitalize on any new funding," said Senator Skogen. "Minnesota has tremendous infrastructure needs, and utilizing this federal funding could allow us to both complete these important projects while getting thousands of people back to work."

Senator Skogen added that he hoped the state's efforts would help ensure Minnesota received an equitable share of the funding coming out of Washington.

"Currently, Minnesota only gets about 70 cents back from each dollar we send in to the federal government," Senator Skogen said.  "The federal jobs bill is simply too important to leave any funding on the table."

In addition to leveraging funding from the federal recovery package, Senator Skogen said the Senate is exploring several other economic development initiatives. Committees have already begun examining new proposals aimed at spurring greater private investment in Minnesota businesses, with a focus on companies in emerging industries, such as the biosciences and "green" energy technology.

"In light of the current recession, we need to be seeking innovative ways to help businesses thrive and grow in our state," said Senator Skogen. "Economic recovery means getting people back to work in the short term, and ensuring Minnesotans have good-paying job opportunities in the future."

For more information, contact Senator Skogen at 651-296-5655 or sen.dan.skogen@senate.mn

On Tuesday, January 6, the Minnesota Legislature convened the 2009 session facing the difficult task of reconciling a projected $4.8 billion budget deficit. State Senator Dan Skogen, DFL- Hewitt, said today that bipartisan cooperation and long-term strategic thinking would be needed to confront the tough decisions facing lawmakers.

"During these tough economic times, we as a state, and as legislators, need to keep looking forward," said Senator Skogen. "While families are facing a trying time, it is important that we confront our challenges head on, and make smart decisions that will lead to a more prosperous Minnesota. Now is not the time for politics; it is the time for all of us to work together and embrace all good ideas."

Among the first orders of business for the Legislature will be a thorough review of the governor's budget proposal when it is released later this month.

"Passing a balanced budget is going to require a major reduction in state government, and a significant realignment of state resources," said Senator Skogen. "These cuts and reforms will have a real impact on thousands of families in our state, and it is important that we hear from those who rely on government services as we proceed through this difficult process. The Senate is going to spend a considerable amount of time going through the state's budget, and we hope to hold some hearings outside of the Capitol to hear from folks who aren't able to attend legislative hearings in St. Paul."

Senator Skogen added that he recently held a series of town hall meetings throughout his district to hear the thoughts and concerns of citizens and local government officials. In addition, Senator Skogen said he hopes constituents with ideas on the budget or other legislatives issues will contact his Capitol office, which can be reached at 651-296-5655.

Senator Skogen represents Senate District 10, which includes parts of Becker, Otter Tail, and Wadena counties. He was first elected to the Minnesota Senate in 2006, and is in his first four-year term. He serves as vice chair of the Senate's Environment and Natural Resources Committee, and as a member of the Agriculture and Veterans Affairs Committee, the Commerce and Consumer Protection Committee, and E-12 Education Budget Division.

For more information, contact Senator Skogen's Capitol office at 651-296-5655 or sen.dan.skogen@senate.mn.