2002-05-08 CC Packet - Laserfiche WebLink

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.. tIo.y 83 2BB2 13:59:15 Yill FIlx -} . .~.~.~J\ . ""''''---;::- 651 429 8629 AdMinistrlltor Page BBl Of BBl LMC ""'~""'''' ~1I">!"WIn,"m.,. 'iu.... jlfflIll,litJjj~ ~.""\l&oW~ -FridayFax- A weekly legiJlaliw. updale from 1112 League of MinneJola CilieJ The session in reverse Most legislative sessions begin very slowly and end with a frenetic sprint (0 the finish. This year, the process seems to have been reversed. This session started 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, the governor offered his plan to balance the shortfal~ including major reductions in Slale 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 legislatare. House and Senate committees began meeting immediately and on February 22, the legislature had presented the g;vernor 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 one month to address the inilial $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 easy solutions such as shifting state resources and drawing down reseryes, 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 lhe 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. HQ'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 state appropriations, which could include cuts in slate aid to cities. The legislature is running out of time. The regular session must end by May 20-with or without resolution of these major issues. If we don'l see som" signs of activity soon, lhe 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 meets--sort 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. Allhough the Senate holds the gavel--meaning its their turn to call the meeting--House conferees used the time to hear more about a variety of issues. Of most interest to the municipal community was testimony on potential chang'" to redevelopment and economic development programs. Fc)! more informalion on ell)' leai5l.ui..e issuu., conla.:\ any member "t Ih. LUj,U4 of Minn.~ola Ciliu Inlel!Ov0l'lImllll'llal Fblalions leam. 651.281.1200 or 800.925.1122