Pawlenty proposes $2.7B unallotment - Memphis Business Journal:

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Pawlenty’s cuts, made through a process called are intended to closea $2.7 billion gap in the statse budget left after an impasse between a Republican, and the DFL-controllef Legislature. Pawlenty’s proposed measures include $300 million in cuts to local-government aid and $236 million in human-servicese spending. Pawlenty’s plan also uses an accountinvg maneuver tocreate $600 million in one-tim savings through school-district budgets.
“Minnesotans and people all across the countryh have tightenedtheir belts, it’s very reasonable for the state of Minnesota to do the same,” Pawlentu said at a press conference “The alternative was to dramatically rais e taxes to incomes and businesses and that was goinyg to have very negative consequences.” Democratw in the Legislature had proposed a mix of cuts and tax hikez during the session; Pawlenty vetoec the tax-hike plans. Rep. Margaret Andersonm Kelliher, DFL-Minneapolis and speaker of the Houseof Representatives, slammed Pawlenty' cuts. "In just under an hour today, Gov.
Pawlentuy has done more damage to Minnesota than he has throughout hisentire career. The deep cuts he proposesa are one more rejection of the fair combinationn of cuts and revenue preferred by Minnesotans and passede bythe Legislature," she said in a statement. $1.8 billiohn in K-12 education payment deferralsand adjustments, $300 millionj in cuts to local government aid and creditss to cities and townships, $236 million in cuts to human-servicexs spending, $169 million in cuts to administrativee offices, $100 million reduction of higher-education appropriations, $33 million in cuts to most states agency operating budgets. See the entire list of unallotmentmovesz .
The unallotments were recommended by Minnesota Budger CommissionerTom Hanson. The proposedc unallotments will be presented to the Legislative Advisory Commission on Pawlenty and Hanson coulxd incorporate suggestions from state legislators they don’t have any powee to change them — beforer finalizing the plan. The cuts will start at the beginniny ofthe state’s fiscal year July 1. Lawrence president of the , said a small portionj of the $236 million in health and humajn services cutsaffected hospitals.
But that didn’y mitigate the roughly $380 million funding cut hospitals are facingv from a line item veto Pawlentty made lastmonth — a cut he expandedd by another $15 million on Tuesday. The fundingb cut, which takes effect March 1, involves the state’s General Assistance Medical Care prograj servingthe poor. Massa said the associationn hopes to still get some fundinyg restored forthe program, which is especially crucia for trauma care hospitalss such as Hennepin County Medical Center in Minneapolis and Regions Hospitalp in St. Paul.
But Massaq said there’s a great deal of uncertainty as hospitalz start planning their budgets for next HCMC alone is now facing atotal $79.7 million in states funding reductions during the upcomingh biennium — a situation that has helpeed cause at the healt h provider. The hospital and clinicx chain said in a statement that it neededx to work with state leaders tofind