2002-05-05 CC Packet - Laserfiche WebLink

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. lIay B3 2BBZ 13:S9:15l,1i.. F..x -) ~ . ......1\ ..J' .....'.....~""':::' 651 429 8629 AdlOinistr..tor Page BBl Of BBl LMC -FridayFax- A weekly iegistIJllve updatefrom th2League ofMinruzsola CIlies f'''P.1'''''''~jlh~'IC~ t:i!;"",""M.I<.lt~~.\L'II:!I.t!I'''' The session in reverse Most legislative sessions begin very slowly and end with a frenetic sprint to the finish. This year, the process seems to have been reversed. This session slarted with a roar of activity to balance a projected budget deficit but for the past month, the pace has slowed to a standstill. In early January before the session began, th!' governor offered his plan to balance the shortfall, including major reductions in state aid to cities. Coupled with the release of his plan, he also challenged the legislature to take immediate action to address the state's budget problem-even suggesting that the legislature should pass a proposal in the first weeks of the session. The session began on January 29 with a projected $2 billion shortfall and a demand by the governor for an immediate budget reconciliation by the legislature. House and Senne committees began meeting immediately and on February 22, the legislature had presented the governor with a Phase I $2 billion budget reconciliation package. Although he vetoed the bill on February 25, the House overrode the veto on February 27 and the Senate followed one day later. In all, it took the legislature less than olle mOllth to address the initial $2 billion deficit. The state's financial situation took a turn for the worse when the Department of Finance announced on February 25 that the deficit had grown by an additional $439 million. Given that the Phase I plan drew upon the eas y solutions such as shifting state resources and drawing down reserves, it should not be entirely surprising that the smaller remaining deficit has been more difficult to address. That said, the House and Senate each devised their May 3, 2002 Page 1 own plans that resolved the issue with minimal add itional pain. The remaining $439 million deficit, along with other controversial issues such as the gas tax, the stadium, the anti-terrorism bill and the bonding bill remain the major sticking points. Te<:hnically, the legislature could go home without addressing any of these issues. H<>wever, the budget deficit will ultimately require some action-if not by the legislature then by the governor. He could be responsible for balancing the remaining deficit with his power to unallot stale appropriations, which could include cuts in state aid to cities. The legislature is running out ohime. The regular session must end by May lO-with or without resolution of these major issues. If we don't see some signs of activity soon, the legislature may not have enough time to repeat an override of an expected governor's veto of whatever compromise is reached for Phase II. Bonding committee meetsnsort of... With virtually no official conference committee action this week at the Capitol, the House conferees of the bonding committee held an unoffICial ''working group" meeting to take public testimony on a variety of projects. Although the Senate holds the gavel--maning its their turn to call the meetingnHouse conferees used the time to hear more about a variety of issues. Of most interest to the municipal community was testimony on potential changes to redevelopment and economic development programs. For more infQrmation on dl}' laai!w,;li"e issues, conll.cl.lll)' fI:I'tmbe: of the Ltili\1e of Mlftftelola ellie, !nllil!OVernmel1.lal R.lalions learn. 651.281.1200 or 800.92.5.1122