Legislative notebook: House, Senate look to the sun for power

By Don Davis and Danielle Killey

Minnesotans could sell solar power to electric utilities under a bill the House passed 70-63 late Tuesday.

“They pay someone who has solar on their house just what the solar is worth to the (electrical) system,” Rep. Melissa Hortman, FL-Brooklyn Park, said about a provision in her bill.

But Rep. Michael Beard, R-Shakopee, said not everyone would benefit.

“If you don’t have a south-facing roof and if you don’t have $60,000 (to buy solar cells) … too bad for you,” Beard said.

Rep. Pat Garofalo, R-Farmington, said the Hortman bill would raise electric rates, in part by encouraging overproduction of solar power.

“Every person in Minnesota who uses electricity will pay more for electricity in order to meet the requirements of this legislation,” Garofalo said.

Rural Republicans were especially harsh.

“This energy policy bill completely lacks in common sense, contains too many regulations and unknowns, and will only serve to substantially increase electric costs on hardworking rural taxpayers who have already seen a rate increase of over 70 percent because of similar, government-driven energy mandates,” said Rep. Dan Fabian, R-Roseau.

Rep. Deb Kiel, R-Crookston, was not happy that Democrat-represented Iron Rangers would get some rate protection under the bill.

“We need to ask ourselves: If the policies in this bill are so damaging to the Iron Range and its businesses that it requires legislative protection, why is this bill good for northwest Minnesota and our businesses and homeowners?” Kiel said.

Hortman, however, said the bill would be good for the economy and create 2,000 jobs related to solar energy.

It would provide $5 million in incentives for solar cells made in Minnesota. The only plant now making them is on the Iron Range.

While the House prepared to debate its energy bill, the Senate Finance Committee approved an energy bill 13-9 that includes solar energy requirements.

Bill sponsor Sen. John Marty, DFL-Roseville, said the initial shift to solar power might come with some upfront costs, but it ultimately will be better for the state.

“The sooner we move this way, the better off we’re going to be,” Marty said.

At least 1 percent of utilities’ power must be solar by 2025 under the bill. The bill also includes incentives for using Minnesota-made solar products.

Long talks, short specifics

The governor and top Democratic legislative leaders met for nearly two hours Tuesday, but had little to say afterward.

The talks are aimed at reaching an agreement on how much to spend in the next two years and what mix of tax increases is needed to achieve that goal. Even though Democrats are in charge of the Senate, House and governor’s office, they have slightly different budget plans.

Lawmakers must finish their work by May 20.

House Speaker Paul Thissen, DFL-Minneapolis, said he expects budget decisions to be made this week so lawmakers can vote on bills next week as they complete their $38 billion, two-year budget.

Senate Majority Leader Tom Bakk, DFL-Cook, said taxes are a big part of negotiations.

“The challenge now becomes finding an overall revenue target for the tax committee to pay for the spending in the state budget,” Bakk said. “What people need to remember is we are starting this budget cycle with a $627 million deficit, so the first $627 million we raise doesn’t give the Legislature one penny to spend.”

Reconsidering unions

A bill allowing child care providers and personal care attendants to unionize will be reconsidered in the Senate Finance Committee today after failing on an 11-11 tie vote Monday.

Democratic Sens. Barb Goodwin of Columbia Heights and Terri Bonoff of Minnetonka joined Republicans in voting against the bill.

Mining restrictions possible

Silica sand mining opponents want lawmakers to try again to add provisions to a game and fish bill prohibiting frac sand mining near springs, trout streams or other water resources.

Sen. Matt Schmit, DFL-Red Wing, originally included the ban in his bill, but it was removed in a committee. Some senators tried to add it back in the Finance Committee, but that failed 11-10.

The provision could be proposed during full Senate debate on the bill.

Senators discuss bullying

The Senate Education Committee approved a bill Tuesday to prohibit bullying in schools.

The action, which brings the measure close to a full Senate vote, came a day after the House passed a similar bill.

“We don’t want to label kids, we don’t want to create new discipline and sanctions,” said bill sponsor Sen. Scott Dibble, DFL-Minneapolis. “We really want to prevent and redirect and teach kids about respect and tolerance and how to deal with conflict.”

Dibble said his bill can help make students feel safe. “School districts are empowered to respond in the fashion they see fit, and there are resources and tools available.”

Bonding bill stands still

By Danielle Killey

A bill to fund local road and bridge work, flood prevention measures, civic centers and other projects throughout the state appears stalled in the Minnesota Legislature as time runs down on the session.

“We’re getting a little nervous, obviously, because we’re quite close to the end,” House Capital Investment Chairwoman Alice Hausman, DFL-St. Paul, said.

The House and Senate seem to be waiting for each other to move forward on a plan for a so-called bonding bill, where the state would sell bonds to fund public works projects.

Hausman said she is hesitant to put her $800 million bill to a House vote before a Senate plan is released, though said she might be forced to do so early next week because of a May 20 adjournment deadline.

Senate Capital Investment Chairman LeRoy Stumpf, DFL-Plummer, said his committee still is holding hearings on possible public works funding projects.

“I know it seems like we’re getting down to the end, but we still have two weeks,” Stumpf said.

While each chamber develops its own plan, Senate Majority Leader Tom Bakk, DFL-Cook, said the state constitution requires that the bonding bill be passed first in the House, so it should take the first step.

He also said there needs to be at least some Republican support to move forward.

“We can’t pass it without Republican votes,” Bakk said, because it requires a three-fifths majority to be approved and Democrats do not have that many votes.

Rep. Matt Dean, R-Dellwood, said there may be trouble gathering that support.

It is the wrong year for a major bonding bill, Dean said. He said the Legislature traditionally focuses on the budget one year and puts forward a public works borrowing bill the second of a two-year session. This is a budget year.

“It’s hard to bring up any bonding bill in a non-bonding year, particularly before the budget’s done,” Dean said.

It is not a typical bonding year, Stumpf acknowledged, but added Democrats are trying to make up for smaller bills in the past and requests are mounting.

“There’s a huge, huge desire,” Hausman said. “We’ve always believed that this is the year to be aggressive about bonding.”

Dean said Republicans have not ruled a bonding bill out entirely. “We have not said ‘no’ to anything.”

The bill Hausman proposed has some projects with bi-partisan support, Dean said.

Hausman said she is fairly confident there are enough votes in the House to pass the bill.

State Capitol building restoration has gained Republican and Democratic support.

Bakk said at a minimum the Legislature should approve those funds.

The Senate tax bill included $33 million over the next two years for Capitol building repairs, but Stumpf and Hausman said that will not be enough to keep the project on track and said $109 million for the next two years should be part of a bonding bill instead.

“I would not want the building itself to be held hostage,” Dean said.

Stumpf said he is working with Hausman and Gov. Mark Dayton to make sure final plans line up as much as possible to avoid complicated negotiations.

“I think that’s coming together,” Stumpf said.

Dayton has proposed a $750 million borrowing bill.

Bakk said he assumes the bill will need to go to a conference committee where lawmakers from the House and Senate would iron out differences between their versions of the bill, as well as mesh their proposals with Dayton’s wishes.

Stumpf said the House and Senate took different approaches to putting together the bill. The House worked to get a plan out right away while the Senate’s process took longer, Stumpf said.

He said the Senate bonding is entangled with budget plans, and changes and delays there have “put a twist” in the bonding proposal.

Stumpf said he is not frustrated the bonding bill has not yet come forward in the Senate.

“I think we’re tying a lot of different pieces together toward the end of the session,” he said. “And that makes sense.”

Legislative notebook: Sunday sales fail

By Don Davis

Another year, another defeat for Sunday liquor sales.

The Minnesota House voted 106-21 Wednesday to retain state law forbidding Sunday liquor store hours. The issue arises regularly in the Legislature, always failing by a large amount.

The vote came on an amendment to a broader liquor bill that generally authorizes liquor sales at specific stadiums, bars and other local sites. The overall bill passed 103-24.

Most debate centered on the Sunday provision, which also would have allowed liquor store sales on Thanksgiving Day and Christmas Eve.

“Minnesotans want this amendment,” said Rep. Steve Drazkowski, R-Mazeppa. “Let’s vote on behalf of the people.”

Others, including Rep. Bob Barrett, R-Lindstrom, said because liquor stores essentially would be forced to be open seven days a week, consumers would absorb higher costs the stores would incur.

Drazkowski said three bridges in or near his district that go to Wisconsin provide routes for Minnesotans to buy liquor in stores there. He said up to 40 percent of Wisconsin border stores’ Sunday sales come from Minnesotans.

Author of the Sunday sales amendment, Rep. Tina Liebling, DFL-Rochester, said the state tells only car dealers and liquor store owners they must be closed on Sundays.

“We believe that competition is a good thing,” Liebling said. “That is what we do for most retail and most services.”

All have needs

Democratic House and Senate leaders sat down Wednesday with Democratic Gov. Mark Dayton, then the governor visited rank and file Democratic legislators as they look at how to end the legislative session by May 20.

“Like any negotiations, even negotiations back in your family, they work best when everybody gets a little something that they want, and I think that will be the final outcome of this session, too,” said Senate Majority Leader Tom Bakk, DFL-Cook. “Both the House, the Senate and the governor will get the things that are really important to them, but there’s going to be serious reinvestment back into our educational system and property tax relief at the conclusion of this session.”

House-Senate conference committees began dealing with a variety of budget issues Wednesday, but decisions can’t be made until Dayton and legislative leaders agree on how much to spend in areas such as health care, public safety and education.

While the conference committees work to merge spending plans by the House, Senate and governor, legislators are expected to deal with nonbudget issues.

On Friday, the House is expected to debate a bill that would raise the state’s minimum wage. The bill then would head to the Senate, which has a smaller raise planned.

No vote on a bill allowing gay marriage is expected this week. There are questions about whether any bill to change gun laws will come in front of the full House and Senate.

A Senate committee on Wednesday discussed some public works projects, but it remained unclear whether senators will debate a so-called bonding bill this session.

Kriesel urges marriage vote

Former state Rep. John Kriesel, R-Cottage Grove, is featured on a television commercial supporting gay marriage.

The advertisement came out this week as the Minnesota Legislature apparently prepares to vote on overturning existing state law banning same-sex marriage. The Kriesel spot urges Minnesotans to contact their legislators and ask them to vote for the repeal.

“Like many Minnesotans, Rep. Kriesel’s personal experiences are what brought him to the conclusion that loving and committed same-sex couples deserve the freedom to marry,” said Richard Carlbom, Minnesotans United campaign manager. “In the next three weeks, the Minnesota Legislature has the historic opportunity to make Minnesota a more fair and free state by including same-sex couples and their families in marriage.”

‘Mind-numbing’ taxes

The president of the Minnesota Family Council calls Democratic-proposed tax increases “mind-numbing.”

“It’s incredible what is being proposed,” Tom Prichard said. “The tax increase proposals are the equivalent of a $1,400 to $2,000 tax increase on the family of four. While the proposals target higher income earners, these figures point out the immensity of the proposed tax increases.”

All three proposals call for raising about $2 billion in new taxes.

No sand mining ban

A bill regulating sand mining in southeastern Minnesota will not ban the activity from near trout streams when it reaches the full Senate.

While the issue still could arise during Senate debate on the bill, the Finance Committee turned down a proposal that would have kept sand mining away from trout streams. Republicans and Iron Range Democrats joined to defeat the plan in the committee.

Pot bill coming

A bill is to be introduced today allowing medical marijuana in Minnesota.

Rep. Carly Melin, DFL-Hibbing, and Sen. Scott Dibble, DFL-Minneapolis, are prime sponsors of the measure, which has co-sponsors from both parties.

Supporters say marijuana should be used to help seriously ill people ease pain or help treat their conditions.

Radon info required

The House passed a bill 79-47 Thursday that, among other things, requires real estate agents to provide information about radon to new homeowners.

At least a third of Minnesota homes have radon levels that put residents at risk, said Rep. Carolyn Laine, DFL-Columbia Heights. Radon can cause cancer.

Rep. Steve Drazkowski, R-Mazeppa, said he worries that government would make more home-selling requirements. He suggested next might be warnings about bats because they may carry rabies.

The bill also makes it a misdemeanor for body artists, such as those who apply tattoos, to practice without a license.

Nursing homes say they need more money than bill includes

By Danielle Killey

Jon Riewer said his organization faces funding shortages, losing employees and struggling to provide care to the elderly and disabled.

“At this point I would classify our situation as fairly desperate,” said Riewer, CEO and president of Moorhead, Minn.-based Eventide Senior Living Communities.

Riewer said Eventide is not alone among nursing home and other care facilities and state lawmakers’ budget proposals for health and human services do not help them with the dilemma.

“It’s hard not to feel like one of the most important things we can do as a state is protect our seniors, but we very much feel like we’re at the bottom of the food chain,” Riewer said.

Democratic legislative leaders set a budget target that cuts about $150 million from the two-year, $11 billion health and human services budget.

House HHS finance committee Chairman Tom Huntley, DFL-Duluth, said he tried to find a way to increase pay for caregivers despite cuts he was ordered to make.

“I’m very concerned about the rapid turnover,” Huntley said, noting pay is a significant factor for long-term care employees. “We’ve been cutting way too long.”

His plan would give nursing home employees a one-time 3 percent raise and other long-term care employees a 2 percent raise. The Senate version includes an overall 2 percent raise.

“From my perspective, it’s too little too late,” Riewer said.

Advocate groups propose a 5 percent increase each year of the two-year budget.

“We have such a huge gap to make up,” said Gayle Kvenvold, Aging Services of Minnesota president and CEO.

Huntley said that is too much money given the budget targets.

“To me and many of my rural Republican colleagues, this is unacceptable and we are going to try our best to right this wrong,” Sen. Gary Dahms, R-Redwood Falls, said.

He said he would support the 5 percent increases.

Huntley said he understands the concern that qualified employees are not staying at care facilities.

“Basically they can walk down the street to Walmart and make about the same wages and do probably an easier job,” he said.

The pay issue coupled with cuts and other factors are putting nursing homes at risk, said Patti Cullen, Care Providers of Minnesota president and CEO. She said facilities throughout the state are struggling.

“Really, as you look across the state, the risk of closure and job loss is pretty evenly distributed,” Kvenvold said out of about 380 nursing homes in the state, an estimated 115 are in financial crisis, putting about 15,000 jobs at risk. Northwest Minnesota has the most struggling facilities, she said.

“Facilities caring for our elderly and developmentally disabled are among our top employers and many won’t be able to stay open if these cuts are approved,” Dahms said.

Revenue options are limited for nursing homes because state officials must approve nursing home rates.

Sen. Tony Lourey, DFL-Kerrick, has proposed making nursing home residents pay a surcharge, which could raise about $16 million in the next two years. Kerrick has a plan to funnel funds back to the organizations.

Cullen said she is in favor of extra program funding, but all facilities might not benefit equally from that charge.

“If all the surcharge money doesn’t come back to boost our programs then it doesn’t really become a surcharge, it becomes a tax,” she said.

Health and human services spending is second only to public school funds in the state’s about $38 billion budget.

The area has seen cuts in the past, Kvenvold said, so she was surprised it came up again.

“It’s always hard to cut spending,” Senate Majority Leader Tom Bakk, DFL-Cook, said. “It’s an area of the budget that under current law is simply growing unsustainably.”

Kvenvold said the state needs to invest in senior services and care.

“Minnesota is aging,” she said. “We need to address the demographics and we need to do it in this coming biennium. We need to be ready.”

“There’s no way to stop the increase in HHS costs because of the age wave,” Sen. Kent Eken, DFL-Twin Valley, said.

Huntley said he hopes the budget still could increase, possibly in a conference committee where the differences between Senate and House versions would be ironed out. The governor’s budget proposal included an increase, and Huntley and Eken said that could influence discussions.

Eken said to make that happen, other areas of the budget might have to be trimmed, there might be new revenue or some combination. He said it will be difficult, but is possible.

“That’s where there is some hope,” he said.

Eken deciding pay vote: ‘Not worth sacrificing good parts’

By Don Davis

Kent Eken sat with 65 other Minnesota senators for several long minutes late Tuesday afternoon, waiting on the outcome of a vote that would approve state legislative and executive branch pay raises.

With two big voting boards in the Senate chamber showing a 33-33 tie on the measure, which would have defeated it, the Twin Valley Democrat changed from a “no” vote to “yes,” and acting President Sen. Jim Metzen, DFL-South St. Paul, quickly ended voting so the bill passed 34-32.

With his change of heart, Eken became the deciding vote for the pay raises and other state government funding in the bill.

“The one thing I didn’t agree with in this bill was the pay issue,” Eken told Forum News Service. “I originally voted no, but when I saw that the votes weren’t there to pass the bill I thought it wasn’t worth sacrificing all of the other good parts of this bill.”

Among items Eken said he supported was additional spending on veterans’ programs and a provision that would allow the state Veterans Affairs Department to open a veterans’ nursing home in Beltrami County. The bill does not appropriate money for the project and Veterans Affairs officials say their priority is to finish work on the Minneapolis Veterans’ Home before looking at opening new nursing homes.

After the vote, the first-year senator promoted a constitutional amendment proposal he made as a House member. It would remove pay decisions from the Legislature.

“I really do think it is a conflict of interest for us to be dealing with it,” Eken said.

Eken’s change left five Democrats and all Republicans opposing the bill.

The only mention of the raises in the Senate came when bill sponsor Sen. Tom Saxhaug, DFL-Grand Rapids, quickly described the bill. He did not provide specifics on the raises, but it is a politically sensitive subject and senators were well aware of it.

“It’s a tough vote,” Senate Majority Leader Tom Bakk, DFL-Cook, said.

The overall bill would spend $924 million in the next two years, funding the Legislature, executive offices and a range of departments from the Arts Board to Historical Society to Minnesota Management and Budget.

For lawmakers, the bill would increase salaries from the current $31,000, which has been the standard for nearly 15 years, to $42,000 in 2016.

Bakk said he supports the raises because without them the Legislature could be dominated by the retired, rich and those who cannot find other jobs.

“It is about the next generation of people who come to the Senate,” he said.

Democratic senators took an hour-long break during debate on the bill to talk privately. Bakk said they considered removing the pay provisions, but opted to leave them in.

Two Republican leaders decried the raises, saying they show how Democrats want to spend more money, but said they would accept the money if the Legislature eventually approves.

Democratic Gov. Mark Dayton said he would donate any raise to charity, but Senate Minority Leader David Hann, R-Eden Prairie, and Assistant Minority Leader David Thompson, R-Lakeville, said they would follow whatever law Democrats in charge of the Legislature pass.

“It was part of a larger bill,” Thompson said. “The focus needs to be is what are the Democrats doing here generally.”

“This is part of the DFL budget,” Hann said, hinting the higher pay could become a campaign issue.

A compensation council recommended the higher salaries for legislators, the governor, attorney general, secretary of state, auditor and judges. The Legislature and governor must approve.

The governor, whose $120,000 annual salary ranks 32nd in the country, would receive an increase to $128,000 in 2016. Other top state officials would receive similar-sized raises.

A similar pay raise is not in a related House bill, but a conference committee could insert it next month.

Also in the state departments finance bill:

– The Sunset Commission is killed. Legislators established the commission to review state agencies now and then to see if they should continue to exist.

– State and local officials on military duty would continue to receive their government pay.

– Red and white striped or red, white and blue striped barber poles only could be used by barbers.

– Cosmetologists, nail technicians and others would be required to take continuing education courses.

– House and Senate budgets would increase 9 percent.

Lawmakers craft legacy bill

Hartwell

By Danielle Killey

Studying the Minnesota film industry, funding public television and conducting water quality studies are a few ways lawmakers propose spending some of the nearly $300 million from the state’s legacy fund next year.

They are working to hash out a plan to split the money that comes from a sales tax increase of three-eighths of a percent. Voters approved the increase in 2008 for outdoors, arts and environmental projects.

“Our goal is to have many parts of the Legacy Fund working together,” House Legacy Committee Chairwoman Phyllis Kahn, DFL-Minneapolis, said.

Legacy bills finance a number of individual projects, but also put money toward grant programs where people such as artists can apply for funds.

Lawmakers, including Rep. Dean Urdahl, R-Grove City, worked to add a number of individual projects to the plan.

Many of his proposals in a Friday committee meeting would fund Civil War-related education and research.

He also supports study of the economic impact of motion pictures in Minnesota. Earlier in the legislative session he and Kahn introduced a plan to put state money toward films made in Minnesota. Kahn said they are still working out how to fund that and said the program likely would need about $10 million “to get us noticed” in the film industry. Some or all of the money could come from the legacy fund.

Recommendations on how to spend funds designated for protecting wetlands, prairies, forests and wildlife come from the Lessard-Sams Outdoor Heritage Council.

“We’ve done a very thorough job,” council Chairman David Hartwell said of vetting projects requesting the more than $98 million available next year.

Senate Majority Leader Tom Bakk, DFL-Cook, said he expects the Senate’s outdoors spending proposals to align closely with the recommendations.

The House Legacy Committee is considering a shift from an annual funding process to a biennial process for the funding, a move Hartwell said could make it harder to address pressing problems. He said the annual budget process allows for some funding to tackle issues such as the possible invasion of Asian carp, which received some money last year.

The clean water fund, expected to have roughly $92.7 million in projects for 2014 aimed at protecting and restoring the state’s water quality, and the about $39.9 million in parks and trails funding will come before the committee starting Monday, Kahn said. She said the plan is to move everything forward together in one bill Wednesday.

The Senate proposals will go through a number of committees before being compiled.

Bakk said they likely will continue funding similar projects as in years past, but lawmakers can make changes and propose amendments.

Discrepancies between the House and Senate plans would have to be hashed out in a joint committee later in the legislative session, which must end by May 20, if approved by members.

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Examples of legacy-funded project proposals for 2014:

– $18.25 million to support artists and arts organizations

– $10.6 million for history programs in the state and local, county, regional or other organizations

– $7.96 million for Pheasants Forever to acquire land for wildlife management

– $5.3 million to protect and restore native prairie, grasslands, wetlands and savanna

– $3.95 million for the Minnesota Public Television Association

Political notebook: Boomers to cost

Marquart

By Don Davis

Baby boomers will make writing the state budget harder, reduce the Minnesota labor force and cause state health care spending to soar, State Demographer Susan Brower said.

“Aging pressure” is how Brower termed the issue.

The demographer said aging boomers will “place new pressures on the state budget, especially in the areas of health and long-term care.”

An older population means more money would be needed for a Medicare supplement program, she said, as well as programs that fund health care needs of elderly, poor and disabled Minnesotans.

One of the big issues will be state funding for long-term care, such as nursing homes. Brower presented numbers showing that a third of baby boomers do not know how they would pay for long-term care and nearly 20 percent expect to just rely on government-paid programs.

If the state is to pay health expenses, she said, legislators need to understand that those costs rise dramatically as a person ages. Annual health care costs are $6,500 for those ages 45 to 64, she said, but soar to $10,700 for those older than 65.

While baby boomers head to retirement and wait in doctors’ offices for care, they will leave behind a gap in the state workforce.

Brower said the nearly 1.5 percent annual growth in the workforce size from the late 1990s will shrink to 0.2 percent by 2025. As that creates a worker shortage, Brower said, education needs to pick up the slack to train more efficient workers.

Rep. Paul Marquart, DFL-Dilworth, said what population growth there is will come from minorities such as Hispanic and black Minnesotans, so the state education system needs to make sure they learn as well as white students.

“That will be huge for economic competitiveness,” Marquart said.

 Budgets coming

The rest of April will be packed with numbers as House and Senate Democrats release their budget plans piecemeal.

In coming days, the Senate will announce its state department, transportation and judiciary budget plans.

The House expects to see its health and human services funding bill soon, too.

“We’ve shifted into high gear on the budget,” said Senate Majority Leader Tom Bakk, DFL-Cook.

The way things work at the Legislature, each budget committee chairman is in charge of drawing up a budget in his particular area after legislative leaders decide how much is available to spend.

There is general agreement among Democrats who control the Legislature and Democratic Gov. Mark Dayton to spend about $38 billion in the next two years. But they differ on specifics about how much to spend in each area.

Bakk said the DFL budget outlines, being filled out this month, are good starts, but not the end of budget changes. “This is going to take more than one budget cycle to get us where Minnesotans want us to be.”

 Bonding announcements set

Two of the three public works funding bills are due out soon, with plenty of questions about whether they can pass.

Gov. Mark Dayton plans to let Minnesotans know early in the week how he would spend money borrowed for public works projects around the state. The House expects to release its public works plan Tuesday, but senators’ suggestions will come later.

Their bills are expected to propose spending $750 million to $800 million, to be paid by the state selling bonds.

Republicans say a bonding bill is about the only place where they have a say since Democrats control the Legislature and governor’s office, and they generally do not want to borrow the money. The state constitution requires bonding bills to pass with a three-fifths vote, meaning Democrats cannot pass the bill on their own.

Dayton is expected to ask for more than $100 million to begin a state Capitol renovation project that eventually is expected to cost more than twice that.

Republican leaders said Friday that they want the Capitol work, but would not commit to supporting a bonding bill this year.

“The bonding project I want to do is the Capitol,” said Senate Majority Leader Tom Bakk, DFL-Book.

 Hospital changes eyed

Minnesota officials are keeping a close watch on proposed changes to Fairview Health Systems.

Attorney General Lori Swanson scheduled a Sunday hearing about South Dakota-based Sanford Health’s proposed Fairview takeover. The next day, University of Minnesota President Eric Kaler set a meeting to discuss the possibility of the university running Fairview.

Fairview is home to the University of Minnesota Medical Center and clinics.

“We are looking closely,” Deputy Senate Majority Leader Jeff Hayden, DFL-Minneapolis, about the situation.

However, he added, it is too soon to know if the Legislature needs to get involved. “It’s a fluid situation.”

Beyond the university situation, Swanson is investigating the nonprofit health organization. Nearly a year ago Fairview said it would hunt for a new chief executive officer, but that position remains open, Swanson said.

Swanson, who regulates charities, said she is concerned that a Minnesota charity could be run by an out-of-state organization.

Sanford operates hospitals, clinics, nursing homes, pharmacies and other health-related facilities in South Dakota, Nebraska, Iowa, North Dakota and Minnesota.

Bakk likes work

Senate Majority Leader Tom Bakk’s recent vacation made him realize he is not quite ready to retire.

Bakk and his family traveled to Argentina over the Easter-Passover break and the end of March, where he said he and his wife had a successful hunting excursion — including him shooting a water buffalo.

He said the vacation was great but also made him realize how much he loves his job.

On his way home, Bakk took time to reflect. At nearly 59, he said thoughts of retirement hover, but he realized he was looking forward to getting back to work.

“I started thinking, ‘If I didn’t have a job to go back to, what would I do?’ ” Bakk said. “I think I’ll quit thinking about retirement.”

Social media frustrating

Former U.S. Sen. Norm Coleman says social media take too much time.

“I must confess to almost giving up on Facebook,” he wrote on his Facebook page. “Between all the obligations of the real world — family, work and life — as opposed to the virtual world — Facebook and Twitter become so, so time consuming. My humble apologies to all my Facebook friends for not being very responsive.”

Danielle Killey contributed to this report.

Legislative notebook: Senate DFL not on board with surcharge

Voxland

By Don Davis and Danielle Killey

Senate Democrats do not want to place an income tax surcharge on the richest of the rich, but they are looking into expanding a new tax the governor wants on the top 2 percent of Minnesota earners.

“We are going to take a look at whether the top 2 percent is the right number,” Senate Majority Leader Tom Bakk, DFL-Cook, said Wednesday after announcing a framework of the Senate Democrats’ budget plan.

Gov. Mark Dayton proposes increasing income taxes on individuals earning more than $150,000 in annual taxable income and couples with $250,000 income. Bakk said senators will look into whether to expand the concept to increase taxes on those making “slightly” less.

Bakk said senators probably will not agree with House Democrats, who back Dayton’s high-earner tax increase and also want to put a two-year tax surcharge on those in the top 1 percent of incomes.

Dayton said the surcharge, of an undetermined amount, is going too far and he does not support it.

Overall, the Senate, House and Dayton budget plans are a lot alike.

“It shows very similar priorities,” Bakk said.

The biggest difference among budgets is that the Senate plan would increase local state aid and property tax breaks by $464 million in a two-year, $38 billion budget. The other two plans suggest smaller increases.

The House and Senate would cut health and human services programs by $150 million while Dayton calls for an increase.

Spending in the current budget ending June 30 is slightly more than $35 billion. The House proposal comes in slightly less than $38 billion while the Senate just tops that figure. The governor’s plan falls in between.

Bakk said tax committees will decide specifics on a Senate tax increase, but predicted it will come in at about $2 billion. The other $1 billion of the budget increase would come from more revenue coming from a better economy.

Senate Minority Leader David Hann, R-Eden Prairie, said no more taxes are needed.

Besides the tax on high earners, Bakk predicted senators will agree with Dayton on increasing cigarette taxes. He also said he feels “very strongly about” taxing on line purchases.

Guns on hold

A Senate bill requiring all buyers of handguns and semi-automatic rifles to undergo background checks is on hold until the House decides what to do.

Senate Majority Leader Tom Bakk, DFL-Cook, said Wednesday the Senate Rules Committee, which needs to decide if a gun bill is to continue moving, will hold it until senators see if the issue progresses in the House.

On Tuesday night Rep. Michael Paymar, DFL-St. Paul, the House author of a bill to require broad background checks for gun buyers, pulled the plan when he realized there were not enough votes to pass it. But negotiations continue that could lead to a pared-down version that only adds background checks to buyers at gun shows.

On Wednesday night, Paymar said that House Speaker Paul Thissen, DFL-Minneapolis, wants the full House to take a vote on the broader background checks, so if a gun bill reaches the full House there will be an attempt to amend it. Paymar said he did not know if he or someone else would offer that amendment.

The Senate committee-passed bill would require universal background checks, a provision opposed by Republicans and rural Democrats.

The new House bill could be heard in committee yet this week.

LGA change eyed

Cities across Minnesota agree on a new formula that would deliver a more predictable state aid to them.

Coming together on a topic that usually divides urban, suburban, exurban, regional centers and rural communities comes at a time when Democrats in control of the governor’s office, House and Senate want to increase Local Government Aid.

The formula in a bill by Rep. Ben Lien, DFL-Moorhead, is simpler and city leaders say it gives them a better idea about how much aid to expect. It also automatically increases payments based on inflation.

“This formula will grow when cities grow,” Lien said.

But Rep. Pat Garofalo, R-Farmington, said the proposed formula would increase aid faster than general inflation.

Lien and Rep. Paul Marquart, DFL-Dilworth, said cities have lost millions of dollars in the last decade as LGA has been cut to help balance the state budget.

“We are reversing the trend,” Marquart said of the increased spending and the Lien bill.

“It’s time to reboot,” said Cloquet Mayor Bruce Ahlgren, president of the Coalition of Greater Minnesota Cities. “We’ve made cuts, we’ve made hard cuts.”

The bill also would provide funding for some suburbs that now receive no LGA.

The aid was established to provide aid to cities that cannot raise enough property tax to support fundamental services such as public safety. Wealthy suburbs have not received the aid since they can raise tax money they need.

Of the state’s 854 cities, 107 do not receive LGA now. That number would drop to 85 if the Lien bill passes.

The Lien measure was held over and may be included in an overall tax bill.

Flood prevention funding

Funding for cities such as Moorhead to finish flood-prevention projects could be part of a state public works borrowing bill.

A Senate committee discussed Wednesday providing about $14.7 million for Moorhead and $5.6 million for Oakport Township, which Moorhead soon will annex, to complete flood mitigation projects such as installing barriers.

“Literally, our community comes to a stand-still for two to six weeks while we fight this,” Moorhead Mayor Mark Voxland said of flooding in the area.

He said the city has made good progress in flood prevention work since the 2009 flood when the Red River reached its highest point in the city’s history.

“We have really come a long way,” he told senators Wednesday.

Flooding is a concern this spring. The ground is dry, but also frozen, so if the snow melts quickly it might not soak in and could cause flooding.

“If everything goes at once we could have a problem,” said Sen. Kent Eken, DFL-Twin Valley, who authored bills to provide funding.

Voxland said there is little federal money for flood control.

A purple meeting

Five Democrats and five Republicans met this week in what they call the purple caucus’ first meeting.

Sens. Roger Reinert, DFL-Duluth, and Jeremy Miller, R-Winona, formed the purple caucus earlier this month to bring the two sides together.

“It was a success and I am confident that the group’s energy will continue growing,” Reinert said of the first meeting. “Neither Jeremy nor I did any sort of recruitment for the caucus. We sent a general invite to senators. …. Folks came on their own, and that’s a good sign that the purple caucus has legs and isn’t just talk.”

Another meeting is planned after lawmakers return from next week’s Easter-Passover recess.

 

Legislative notebook: Red plus blue equals purple

Miller, Reinert

By Don Davis

Two Minnesota senators want to form a “purple” caucus to bring lawmakers from both parties together.

Sens. Roger Reinert, DFL-Duluth, and Jeremy Miller, R-Winona, said there is little time when members of the two parties can get to know each other, let alone discuss important issues. They plan to invite lawmakers to gather over a meal in the next couple of weeks to begin the process.

“They used to socialize as people,” Reinert said of legislators.

Once Democrats and Republicans begin getting to know each other, Miller and Reinert said that they will begin discussing issues.

They said that Minnesotans tell politicians that they do not talk to each other, leading to difficulties legislating.

Miller said that the two have not discussed what the group will do if members agree on an approach to some issue. But, he said, he expects the group to focus on issues such as the budget, jobs and the economy.

Over the years, there have been many attempts by members of the two parties to join together in an attempt to accomplish things despite a partisan divide. Most have failed.

“If we don’t do anything, I can guarantee, we won’t have an impact,” Reinert said.

Purple often is used when people discuss combining Democratic and Republican ideas since Democrats are known as blue and Republicans as red.

City seeks arts center

Park Rapids wants $4 million from the state to rehabilitate a former National Guard armory into a regional arts center.

Senators made no promises Monday when the first legislative committee considered the request. The proposal was held over for possible further discussion when, and if, lawmakers take up a public works funding bill this year.

“It’s kind of a blighted area of our downtown,” Executive Director David Collins of the Hubbard County Regional Economic Development Commission told a Senate economic development committee.

The Upper Mississippi River Center for the Arts would be home to art such as paintings as well as plays and music.

Alan Zemek, who splits his time between Park Rapids and Southern California, said the center would help Park Rapids’ economy.

“We can’t market just on clean water and trails,” Zemek said.

The state’s $4 million would be part of the total funding package, which includes $1 million in private donations. More than $2 million already has been spent on the armory,  which was abandoned 20 years ago.

State money would be used to rehabilitate the building. Other funds would be used to buy it from the private owner.

City leaders have worked five years on the arts center.

“It is a great building,” said Sen. Rod Skoe, DFL-Clearbrook, sponsor of the Senate version of the bill. Rep. John Persell, DFL-Bemidji, sponsors the House bill.

The armory is on U.S. 71 near Minnesota 34, “a very high visibility location,” Skoe said.

“Throughout its history, it was always the place where residents gathered,” Zemek said.

Public works bills, funded by the state selling bonds, generally are considered in even-numbered years. However, many Democrats, including Gov. Mark Dayton, want a big bonding bill this year.

Cleaning Voyageurs water

People who live near Voyageurs National Park say they need state help to get rid of their sewage.

“We are facing an environmental impact and an economic one,” Koochiching County Commissioner Wade Pavlak told a Senate committee Monday.

No type of septic system works in the northeastern Minnesota area, he said, because the land sits on hard rock.

Sen. Tom Bakk, DFL-Cook, is asking the state for $9 million for the system. Pavlak said his county already has spent $400,000 on the situation.

Thomas Dougherty of Rainy Lake Houseboats said the situation hurts the area’s economy.

“We don’t have the ability to treat the water,” he said, adding that one facility has to truck its waste water to International Falls.

A Senate economic development committee will consider the proposal if a public works bill is to be debated this year. However, large public works bills generally are considered in even-numbered years.

Political notebook: $30 million in business loans on track

Commissioner Sieben

By Don Davis

Legislative leaders say the governor has a good chance of getting $30 million he wants included in the next two-year budget to help businesses move to Minnesota or expand.

The Minnesota Investment Fund provided more than 600 loans, some of which do not need to be repaid, since 1985. Rural businesses received $85 million while those in the Twin Cities were given $24 million.

“It’s a major priority,” said Sen. David Tomassoni, DFL-Chisholm, who leads a key economic development committee.

Commissioner Katie Clark Sieben of the Minnesota Employment and Economic Development Department said many other states provide financial incentives for expanding and relocating businesses, but Minnesota has only had $7 million available for 53 businesses since 2005. Some states spend several times that amount every year.

Tomassoni said it is tough to compete against the $200 million Texas can use as bait and $50 million that Michigan has available.

“We are willing to do anything we can do” to bolster economic development, Tomassoni said.

Sen. Matt Schmit, DFL-Red Wing, agreed. He said he has heard a lot about the need to offer businesses incentives.

Sieben said the $30 million her boss, Gov. Mark Dayton, wants would help businesses create 7,000 to 10,000 jobs.

Sieben invited two businessmen to talk to reporters. They said that the state loans influenced their decisions to expand in Minnesota.

“Other states do have opportunities…” Rick Burton of Aspen Research in Maple Grove said. “It’s something that we considered.”

Gun bill chances

Gun control supporters could fire a blank in their attempt to require all buyers of handguns and semi-automatic weapons to undergo background checks.

“It’s going to be tough to get the votes to pass that,” Senate Majority Leader Tom Bakk, DFL-Cook, said.

Many rural Democrats are expected to join Republicans in opposing the gun legislation.

While Bakk said he can see requiring people to undergo background checks when they make gun show purchases, he questioned requiring private sales to do the same.

Bakk, who has said his gun cabinet is full, said he did not know how he would vote.

Even if background checks do not pass, other gun-related issued have a chance.

Gun permits up

The number of Minnesotans with permits to carry guns is rising.

The Bureau of Criminal Apprehension reports that 31,657 permits were issued last year, bringing the total to 125,339 people with permits.

Last year’s numbers compare to 20,772 a year earlier and 17,240 in 2010.

Sheriffs reported that last year they suspended nine permits, revoked two, voided six and denied 285 applications.

The BCA said that in 2012, people with permits committed 296 crimes, almost half being traffic offenses.

State gun permits were first required in a 2003 law and last five years before they must be renewed.

A spirited exchange

House Majority Leader Erin Murphy, DFL-St. Paul, predicts a spirited exchange Monday when representatives debate whether to establish a health care exchange.

The exchange is on a fast track to give state officials time to set up the mostly online health insurance sales operation. Either the state will establish the exchange or federal officials say they will do it to meet new federal health care law requirements.

Murphy said representatives have heard 43 hours of testimony and considered 63 amendments as the bill was considered by nine committees in the first two months of the legislative session.

The bill’s Senate version also had made its way through nine committees. Senators expect to debate the bill Thursday.

House Minority Leader Kurt Daudt, R-Crown, said that unless the bill is changed, he would only expect a single GOP vote for it Monday. Senate Minority Leader David Hann, R-Eden Prairie, said he could see no “yes” votes from his caucus.

Republican leaders complained that Democrats who control the Legislature accepted no GOP amendments.

Look to tax ‘Plan C’

Most businesses do not like Democratic Gov. Mark Dayton’s proposal to expand the sales tax to goods and services businesses buy and sale.

Most fellow Democrats have refused to embrace the plan and long lines of business representatives have lined up to testify in front of tax committees against the Dayton plan.

“I’m waiting to see how this shakes out,” Sen. David Tomassoni, DFL-Chisholm, said.

Tomassoni and other Democratic-Farmer-Laborite leaders say Dayton is willing to make changes in his tax proposal.

“He is open to Plan C,” Tomassoni said.

So far, Democrats have brought up no options to replace Dayton proposals that attracted the most criticism.

DFL legislative leaders plan to meet with a key business group in coming days as they look into the Dayton plan.

Seifert apologizes

Minnesota Public Radio recently reported that former GOP House leader Marty Seifert, R-Marshall, admitted he made a mistake in 2008 in disciplining six Republicans who voted to overturn a governor’s veto of a gasoline tax increase.

Rep. Rod Hamilton, R-Mountain Lake, recalled to Forum News Service the day last year when Seifert called to apologize.

The idea to apologize, Seifert said, came when a student in a class he was teaching asked his biggest regret. When he replied that it was the post-override vote action, a student suggested that he call and apologize.

Seifert said it was “dumb” to levy the discipline.

Taxes remain topic as Minnesota budget deficit shrinks

Schowalter

By Danielle Killey

Talk of tax increases continues even as economists anticipate a smaller state budget deficit.

“Tax reform is important for Minnesota’s future,” Senate Majority Leader Tom Bakk, DFL-Cook, said. “I don’t think this will even slow that down.”

Bakk’s comments came shortly after Minnesota Management and Budget reported Thursday the state will face a $627 million shortfall in the next two years, down from $1.1 billion predicted in late 2012.

The state also has a surplus of $295 million for this year, most of which will go to repay money the state borrowed from public schools.

Democratic Gov. Mark Dayton and lawmakers will use Thursday’s budget forecast to set the state budget during the final three months of the legislative session.

“The forecast really sets the table for where the issues are,” Commissioner Jim Schowalter of Minnesota Management and Budget said.

House Speaker Paul Thissen, DFL-Minneapolis, said the forecast is positive, but there is work to be done.

“We still have a deficit,” he said. “We still have a big chunk to deal with just to get back to zero.”

Republicans argued the lower deficit means Dayton should rethink plans to increase taxes.

“If Gov. Dayton and DFL legislators are looking for a reason to raise taxes, they won’t find one in this budget forecast,” House Minority Leader Kurt Daudt, R-Crown, said.

Dayton suggested the better outlook could lead to tax cuts, such as an increased renters’ credit. He did not say he will change proposals to raise income taxes on the richest Minnesotans or sales tax changes. The income tax increase is expected to bring in an extra $1.1 billion and sales taxes changes would result in a $2 billion net increase in revenue.

The governor’s original budget proposal would spend $38 billion over the next two years. He said he will make more concrete decisions about his budget in the coming days and release an updated plan the week of March 11.

The forecast Thursday included about $297 million more than previously expected from income taxes.

Daudt said that is evidence the state’s economy is improving.

“You don’t need to raise the rate to raise revenue,” he said. “You need to get more people back to work.”

Sen. Dave Thompson, R-Lakeville, said Republican policies of not raising taxes and “restraining the size of government” have contributed to the better outlook.

“I’m hoping the governor adjusts his path,” he said, adding tax increases are not only unnecessary but “damaging.”

Dayton said the forecast was good news for Minnesota and a step in the right direction, but “it is not progress anyone is satisfied with.”

Schowalter said the economy is being hurt, in part, because federal budget issues remain unresolved. The economy is “making steady progress, but not nearly enough,” he said.

“We have a new forecast, but a relatively old story,” Schowalter said.

Thissen said he hopes lawmakers can get out of the cycle of deficits.

“We also need to raise new revenue if we want to invest in the things that will improve the quality of life for Minnesota families: education, infrastructure and property tax relief,” Bakk said.

State Economist Tom Stinson downplayed the economic impact of massive federal budget cuts due to begin Friday, but said it could slow state economic growth.

“There’s more going on than just Minnesota policies,” Stinson said.

A state budget must be set by July 1 to avoid a state government shutdown. Democrats, who hold the majority in the House and Senate, have said they will not allow a shutdown.

The state technically is not allowed to have a deficit, so it would have to offset that by raising taxes, cutting spending or a combination.

“Over the coming days and weeks budget discussions will pick up and the task of improving our education system and future workforce will continue,” Rep. Paul Marquart, DFL-Dilworth, said.  “We need to think big again and go in a new direction that puts the middle class first.”

“Today’s forecast is good news, but our state is still not on stable financial footing,” Rep. Mary Sawatzky, DFL-Willmar, said. “Minnesotans deserve an honest budget balanced without gimmicks that funds our priorities and lays the foundation for a stronger economy, a stronger middle class, and a stronger future.”

“The improved forecast is definitely better than the alternative,” Rep. Roger Erickson, DFL-Baudette, said. “But we can’t let this small improvement cover up the fact that we’re still faced with a $600 million budget deficit. The only way we can move forward from this past decade of budget deficits is to help make a fair tax system that lets us invest in things like education, property tax relief and job creation.”

“I’m pleased that our deficit is shrinking, but it’s still another in our decade of deficits,” Rep. John Ward, DFL-Baxter, said. “Minnesotans deserve a budget that is balanced honestly without gimmicks, one that funds the things we value as Minnesotans and keeps us economically competitive.”

“We have less of a mess to clean up, but a mess nonetheless,” Rep. Joe Radinovich, DFL-Crosby, said. “We need to close this deficit and begin re-investing in Minnesota’s future.”

“Today’s forecast numbers are encouraging, but we must remember the need for a sustainable and honest solution,” Sen. Roger Reinert, DFL-Duluth, said. “With these numbers in hand, the real budget work begins.”

“Overall, this is encouraging news,” Sen. Kent Eken. DFL-Twin Valley, said. “It shows Minnesota continues to move in the right direction and that our economy keeps improving. But it also highlights the work we still have to do. The next few months will consist of looking closely at every penny of spending.”

“It’s vitally important the Legislature make responsible budget decisions to ensure we don’t disrupt this positive economic progress and that we keep Minnesota on the right track,” Sen. Lyle Koenen, DFL-Clara City, said. “Using a sensible balance of spending cuts, responsible new revenue and targeted government reforms is the combination needed to solve the deficit and support continued economic recovery.”

“With Minnesota’s budget outlook greatly improving, Gov. Mark Dayton has lost all justification for raising taxes on haircuts, car repairs and certain clothing items,” said Ben Golnik, Republican activist and Minnesota Jobs Coalition chairman. “The bottom line is that Minnesota’s deficit is now manageable enough to solve without raising taxes on anyone.”

“While today’s news shows improvement, the state still faces a $627 million budget shortfall,” Minnesota DFL Chairman Ken Martin said. “Leaders need an honest budget that gets Minnesota off the financial roller coaster of the last decade and makes investments to move Minnesota forward.”

Sequester begins Friday, Minnesota impact uncertain

Stinson

By Don Davis

Minnesotans may not know what the word means, but starting Friday they begin to feel the impact of automatic and deep federal budget cuts known as “sequestration.”

No one knows for sure how Minnesotans will be affected, but there is widespread agreement it will be felt.

U.S. Sen. Al Franken, D-Minn., was among those predicting long lines at airports, less thorough food processing plant inspections and some Head Start children being dropped from the program.

“It’s not pretty and it doesn’t make sense,” Franken said.

As March marches on, however, the public will understand sequestration better and pressure politicians to fix the problem, U.S. Rep. Rick Nolan, D-Minn., said.

“My guess is that as the month proceeds and people realize the foolhardiness of this thing it will be brought before the House,” Nolan said.

State Economist Tom Stinson on Thursday said that a sequester for the rest of the federal fiscal year could slow the state economy’s growth from 2 percent to 1.5 percent. A two-month sequester would slow growth to 1.9 percent, he said.

Minnesota Gov. Mark Dayton said the sequestration issue is serious, but the immediate state budget effect “will be gradual.”

State Senate Majority Leader Tom Bakk, DFL-Cook, said that while the impact on Minnesota is expected to be less than in other states, some areas still will be hit hard. For example, he said, the University of Minnesota will be out about $50 million in research funding if the federal cuts go through.

Minnesota House Minority Leader Kurt Daudt, R-Crown, said he was nervous, expecting a bigger impact from sequestration. But after seeing a new state budget report Thursday he said it likely will not play a major role in state budget discussions.

“Hopefully the Minnesota economy can weather it OK,” he said.

Minnesota’s economic consultant, Global Insights, predicts federal officials will allow the sequester to continue through March and April.

“There also is a deeper concern,” a Global Insights report indicated. “Recently, the U.S. seems to be lurching from one potentially serious economic crisis to another, teetering on the brink of disaster again and again.”

The federal inactions, or “political brinkmanship,” has resulted in enough uncertainty that it has “slowed business investment and hiring,” Global Insights reports.

“The sequester is a poor tool for budget policy … but by itself it is not going to put the country into a recession,” Stinson said.

That is little comfort for those who will be affected by the sequester.

“It’s quite unimaginable that we would be here on the eve of the so-called sequester, but we wouldn’t have a budget on the floor of the House to deal with that,” Nolan said Thursday.

While the House did nothing about the sequester, representatives debated issues involving soapbox derbies and renaming a military base, Nolan said.

U.S. senators on Thursday rejected separate Democrat and Republican bills to deal with the sequester, making today’s start of the cuts certain.

“There are going to be a lot of layoffs and a lot of reduced services for a lot of people,” Nolan said. “This is a game changer. Over the next month we are going to see the consequences.”

Franken said he is concerned about food inspection.

He predicted inspections will not be as thorough because some inspectors will be furloughed. “It is hard to say what could fall through.”

Unlike some, the senator said he does not expect food shortages.

Since some farmers rely on federal payments, Stinson said that the agriculture sector could face sequester problems. But that might only come if budget cuts continue a few months, he said.

Franken agreed that some agriculture payments could slow and farmers would have less access to the Farm Service Agency programs.

Throughout the federal budget, the sequester would cut $1.2 trillion over the next decade, with $85 billion trimmed before Oct. 1.

Beyond sequestration, Congress and President Barack Obama need to deal with the federal budget later this month. Federal programs are operating on a budget extension that expires this month.

In the spring, they must consider whether to raise the debt limit the government is allowed to carry.

Sequestration was approved two years ago when Congress and Obama could not agree on how to control the federal debt. They agreed to the automatic budget cuts as a way to force political leaders find ways to avoid them.

Medicare and Social Security would not be affected by sequester cuts.

Obama and congressional leaders plan to resume talks today, seeking ways to end the sequester.

—-

The White House claims thousands of jobs are at stake with today’s beginning of a federal sequester, automatic cuts in most federal programs.

Here are some cuts the White House and Nolan say Minnesotans can expect by September if Congress and the president make no changes:

– About $7 million in general education funding is at risk, putting 100 teacher and aide jobs in jeopardy.

– Disabled children’s education programs would lose $9.2 million.

– About 920 fewer low-income students would receive college financial aid.

– Head Start services would end for 700 young children.

– Up to 500 disadvantaged children may lose child care.

– About 2,400 fewer children would receive disease vaccinations and 3,200 fewer Minnesotans would be tested for HIV.

– Food inspectors’ hours would be cut at Minnesota food processing plants, which could close plants off and on and lead to shortages of some products.

– Nearly $5 million would be lost for environmental, fish and wildlife programs.

– About 2,000 civilian Defense Department employees in the state would be furloughed at times, Army bases would lose $2.5 million and a Navy Blue Angels air show in St. Cloud could be canceled.

– More than 23,000 people would not receive job-search assistance.

– Air traffic control towers at some airports, including Duluth, could be closed overnight and airport lines could be long.

– About 1,700 fewer people would be admitted to substance abuse programs.

– Up to 400 fewer domestic violence victims would be served.

– The state’s elderly could lose $845,000 in meal aid.

– Emergency personnel could receive less federal support when responding to natural disasters such as floods.

– Federal law enforcement agencies, such as the FBI, would be trimmed.

Danielle Killey contributed to this story.