8.1. SR 05-12-2003 - Laserfiche WebLink

Home Browse Search

85 Z003 14:19:5G Via Fax -> 7634417425 O~mi~istrator 881 0£ 804 - Frid ay Fax- A weekly legislative update from the League of Minnesota Cities We apologize--events at the Capitol went late into the evening on Friday. Therefore, we are sending a Monday edition of the Friday Fax. Legislative activity cranks-up Legislators ~ve just over two weeks in the regular legislative session to finalize the House and Senate tax proposals, close a $1 billion gap between House and Senate budget-balancing proposals, iron-out differences in several omnibus spending bills and debate hundreds of other issues. The focus this week will be action on the omnibus tax bills and the likely appointment of conference committee members. After a marathon Thursday floor session that adjourned early Friday morning, the House passed the last of eight omnibus spending bills. The Senate finished up their floor session work for the week wrapping up the transportation and health/human services bills late Friday night. The highlights in each spending area are provided below. Criminal Justice Finance The House spends over $1.4 billion on public safety, judiciary, and corrections programs; about $51 million more than Gov. Pawlenty recommended. The bill cuts the State Fire Marshal's budget by $1.5 million, but allows the division to recover these cuts in fee increases for hotel, resort, and school inspections. It also reduces state funding for CriMNet by $3.5 million. However, state officials plan to use additional federal funds to continue implementation of this statewide criminal justice information system. The proposal raises about $60 million in fees--mostly coming from court fee increases, public defense co- pays, and a $5 surcharge on criminal and traffic offenses. The Senate passed a $650 million criminal justice package (total does not include corrections spending) as part of the state government budget May 5, 2003 Page 1 bill. The Senate bill restores funding for anti- terrorism equipment and training grants to local units of government. It reinstates $4 million for CriMNet projects and protects funding for law enforcement grants. The Senate proposal spends almost $16 million more on 911 programs and dedicates at least 20 cents a month ofgll fees for distribution to public safety answering points. The bill also authorizes additional revenue bonds to fund the build-out of the public safety radio communications system (800 MHz). Omnibus Transportation Finance Earlier this week, the full House passed a $1.2 billion transportation funding bill. The bill closely resembles the governor's recommendation to pay for road projects by borrowing money and leveraging federal funds, not by raising the gas tax. The bill provides no new money for local roads. The Senate transportation package provides $2.1 billion. It increases the gasoline tax from 20 cents to 25 cents per gallon in order to "pay as you go" in funding new projects. In addition, a license tab fee schedule change will generate about $90 million in the first year and $105 million in the second year of the biennium. The Senate bill provides $1.3 billion for trunk highways, $395 million for local and county highways, and $445 million for transit. The measure also allows the commissioner to spend up to $250 million on trunk highway improvements approved by the federal government and designated as advance construction funds. A League-sponsored provision that would allow cities to impose transportation utility fees to pay for street reconstruction and maintenance was removed in the Senate Tax Committee. Omnibus Jobs & Economic Development Finance The House proposal spends $389 million ($334 million general fund) on jobs and economic development programs. The bill takes many of the governor's recommended cuts and includes the governor's recommendation to provide $2 million For more information on ¢ily legi$lalive issues, conlacl any member of Ihe League of Minne$ola Cilie$ Inlere:overnmenlal Relalion$ learn. 651.281.1200 or 800.925.1122