ST. PAUL -- Rural Minnesotans fared better than most in a budget-balancing bill senators passed Thursday.
The Senate approved the $384 million measure 36-30, cutting programs, delaying payments to counties and other entities and canceling grants.
Senators said they did better for rural Minnesotans than Gov. Tim Pawlenty's budget plan.
"We felt the governor hit rural Minnesota pretty hard," Sen. Dallas Sams, DFL-Staples, said. "We feel there should be equality."
Senators passed the bill with little debate, but discussion became heated when the House Ways and Means Committee took up the budget.
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"Put your head in the sand -- pretend it (budget deficit) is not there -- is that what you would like to do?" an agitated House Speaker Steve Sviggum, R-Kenyon, asked when Rep. Tom Huntley, DFL-Duluth, complained about proposed health and human services cuts. "Life is about making choices," Sviggum said. "Give me your choice, not just criticism."
Later in the day, Sviggum and another northeastern legislator got into an argument.
Rep. Tom Rukavina, DFL-Virginia, challenged the removal of $49 million from a fund aimed at financing new industries in his area. He said that is where the GOP got money to save ethanol subsidies. That upset Sviggum, whose farm partnership benefits from ethanol payments.
The Senate-passed bill, like a House bill to be approved Monday or Tuesday, keeps most ethanol subsidies in place.
"In times of economic displacement, there is an even greater disparity between metropolitan Minnesota ... and rural Minnesota," said Sen. Dick Cohen, DFL-St. Paul.
The bill was crafted "to be careful about cuts that would be made to jobs, cuts that would be made to rural Minnesota or cuts that would be made to children," Cohen said.
Sams said the Senate kept full funding for the Crookston-based Agriculture Utilization and Research Institute, despite Pawlenty's wish to cut 25 percent of its budget.
"We are a light to the rest of the world having this institution around," Sams said of the program that helps farmers turn their crops and other commodities into finished products.
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Take unused funds
Like the House and Pawlenty, senators propose taking unused money from accounts across state government to help balance the budget. They also approved canceling grants and delaying some payments until next fiscal year.
The House and Pawlenty's budget plans are similar, although the House retained most of nearly $27 million in ethanol subsidy cuts the governor wanted. The Republican governor and Republican-controlled House leave more money in reserves than the Senate.
The two legislative bodies differ in their approaches. The House makes deeper permanent cuts, with GOP leaders saying it gives them a head start on solving an expected $4.2 billion deficit in the two-year budget that begins July 1.
Senators do not cut as deep, relying more on payment delays and other accounting measures.
Speed the key
Speed is important because only slightly more than five months remain in the budget. If the House and Senate don't work out their differences by early February, Pawlenty says he will make cuts himself.
Republican senators complained the bill they passed Thursday passes fiscal problems on to counties.
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The bill requires most state prisoners serving one year or less to be housed in county jails. Republicans brought up county officials' comments that they do not have enough cell space for state prisoners and the Senate does not give them enough money to cover their costs.
All Republicans except two voted against the bill.
"The real spending cuts were not deep enough," Sen. Steve Dille, R-Dassel, said.
Readers can reach Forum reporter Don Davis at (651) 290-0707
