State budget forecast projects $1.1 billion shortfall

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Uncertainty could very well be the theme of the state’s latest economic forecast that shows a projected $1.1 billion shortfall for the 2014-15 biennium.However, there is no guarantee it will not worsen if the federal government cannot avoid the so-called “fiscal cliff” and a recession ensues.“There’s no relief in sight for our fiscal woes. Our projections show that the state still has some heavy lifting left to do just to get the budget into balance,” said Minnesota Management & Budget Commissioner Jim Schowalter. He warned that action or inaction in Washington D.C. could swing the state’s budget projections. “Forecasting congressional action remains beyond our reach,” he said.State Economist Tom Stinson said state revenue losses could exceed an additional $1.7 billion if federal lawmakers fail to reach agreement on significant tax and spending changes before the start of the new year.On the good news side, Minnesota Management & Budget officials said there is a $1.3 billion surplus for the remainder of the current fiscal year; however, that money is required to begin paying back the $2.4 billion education shift that has been used the past two biennia to help balance the state’s budget. But there will not be funds in the in the upcoming budget cycle to continue to buy down the shift.No matter what the end number becomes at the state level, House and Senate DFL leaders would not tip their hand as to how they propose to resolve the projected biennial shortfall. Continue Reading

Representative Kurt Daudt chosen to lead Minnesota House Republicans

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House Republicans have picked Rep. Kurt Daudt (R-Crown) to lead their caucus for the next two years as House minority leader.“I have an interest in being part of the team wanting to move forward and look to the future. That’s what we’ve done today,” he said.His vote was not on the first ballot, yet Daudt, an assistant majority leader the past two sessions, said the caucus is behind him. “We’re very united and looking to the future.”Entering his second term in the House after six years as a township officer and six more as a county commissioner, Daudt said he is committed to reach across the aisle and work with the DFL majority on a bipartisan basis.“If they don’t live up to that, we do plan to hold them accountable and we will offer a clear message that shows that we’re committed to create jobs,” he said.Daudt is optimistic relations between the parties will improve.“On both sides of the aisle we’ve got new leadership, and I thoroughly do look forward to working with the DFL. They have offered an olive branch and stated they’re willing to work with us in a bipartisan fashion. We want to take them up on that. Continue Reading

Central Corridor, Southwest transit line updates shared

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The Central Corridor Light Rail Transit project is on time and on budget, while the proposed Southwest line is far from certain.Those were the messages shared by Met Council personnel with the Legislative Commission on Metropolitan Government.Mark Fuhrmann, deputy general manager for Metro Transit, said the $957 million line between downtown Minneapolis and downtown St. Paul is still on track to open in 2014. The project was 74 percent complete through AugustAt a Sept. 25 commission meeting, business representatives spoke about how they have been negatively affected by construction of the 11-mile line, including customers unable to easily access businesses. However, council representatives were not given a chance to respond at that time.Given that opportunity, Fuhrmann spoke of how the council has worked with local businesses to address on-street parking impacts, including a $1.25 million parking grant program to help create additional spaces; fines for construction vehicles parked in wrong places; when intersections were closed or had lanes reduced; and fixing sometimes confusing signage.Robin Caufman, the council’s assistant program director for administration, communication and public involvement, spoke of how the council has helped businesses by going door-to-door to provide updates, featuring a different business in weekly construction updates, providing extra signage to indicate retailers and restaurants are open and spending $1.2 million on a business marketing program.The council has set aside $4 million in loans for small businesses. Continue Reading

Disaster Relief Work Group seeks more proposal details

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A special session for flood relief in Duluth and other areas of northeastern Minnesota remains tentatively scheduled for Aug. 24.But before any money is appropriated, members of the 2012 Disaster Relief Work Group sought more detailed answers on some of the proposed $190 million appropriation sought by Gov. Mark Dayton. The total was “sticker shock” to some Republicans when it was unveiled nine days earlier.“The purpose of today is to describe how agencies got to their total request, to drill down into numbers,” said Rep. Mary Liz Holberg (R-Lakeville), who chaired the meeting. “We need to make sure the money we appropriate goes to those most in need from flood damage.” (Watch the hearing.)President Obama declared 15 counties and three tribal lands a major disaster following the June 19-21 severe storms and flash flooding, and the June 14-18 windstorms and flooding in the western and south-central parts of the state. With such a declaration, the federal government pays 75 percent of costs to help fix public infrastructure and requires a 25 percent match.Dayton unsuccessfully requested individual assistance for five counties and the Fond du Lac Band. Continue Reading