Jan. 25, 2001

'Good, bad, ugly, maybe'

By GUY PRIEL

Journal Staff Writer

NEW ULM -- Disappointment and optimism were the moods of local school district officials and legislators on Wednesday, following the release of Gov. Jesse Ventura's $27.3 billion budget.

Although the budget is filled with messages of tax cuts, tax relief, and tax reform, many shook their heads at the proposal.

"I was disappointed that education is not receiving a higher priority in the proposal," District 88 Superintendent Harold Remme said. "I believe that the governor supports education, but there was very little of that indicated in the proposal."

Ventura's budget plan, which was released Tuesday, provides very little increase in the funding formula for public schools, Remme said.

There will be an increase of about 1.4 percent for the entire biennium. School officials were hoping for an increase of about 5 percent for each year of the biennium, Remme said.

"It is my hope that the numbers will be higher at the end of the session when the final budget is approved," Remme said.

Rep. James Clark, R-New Ulm, also expressed disappointment at what he called the "miniscule increase in education funding."

Ventura made it clear in his State of the State address earlier this month that he did not support a large increase in funding for public schools, Clark said.

"This is ridiculous at this time, especially when so many of our districts are facing budget problems and declining enrollments," Clark said.

The entire proposal is lean overall, but mean in certain areas, Clark said.

"I am concerned with the limited amount of funding for transportation and nursing home wage issues," Clark said.

However, Clark does support some of the proposed changes in taxes.

The tax proposals would reduce the overall tax burden on Minnesota families, providing more take-home money by the end of the biennium, he said.

"This is only the beginning of the process," Clark said. "This basically lays the framework for us to work with. There is a lot to chew on. Unfortunately, there is a lot of gristle and not enough meat in the proposal."

Clark has introduced a bill that would fill the hole left in the highway fund by the governor's proposal to cap license tab fees at $75.

"My proposal will shift some money from the general fund into the highway fund," he said.

Sen. Dennis Frederickson, R-New Ulm, referred to the proposed budget as "the good, the bad, the ugly, and the maybe."

"One positive aspect of the budget is that it provides for full funding of the Conservation Reserve Enhancement Program (CREP)," he said. "The budget provides $51 million that will help us match the funding we received from the federal government to help clean up the Minnesota River. The governor has always been positive in his support for CREP."

However, Frederickson also said that "there are areas where there is insufficient funding for issues that are critical for rural Minnesota."

"Education is one area where funding is woefully inadequate. The overall proposal calls for about a tenth of what was requested," he said.

"I am also disappointed that there was no increase (in funding) for highways," Frederickson said. "Yet, they managed to get money in the budget for a commuter rail from Minneapolis to St. Cloud. I would have preferred more highway funding."

"There should also have been an increase to help with nursing home salaries," Frederickson said.

One good aspect of the budget is the large tax reform picture, Frederickson said.

The reduction in income taxes is a good component, but the extension of the sales tax will create a lot of controversy, he said.

"This is a very well thought-out tax proposal, but whether it will be good for Minnesotans is another matter," Frederickson said. "We need to hear from the people to determine how good this will be."