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m8785 BC-MN-MinnesotaBudgetCu 06-16 0312

A look at Pawlenty’s cuts to balance Minn. budget

With BC-MN--Minnesota Budget Cuts

By The Associated Press

Gov. Tim Pawlenty’s plan to erase a $2.7 billion shortfall in Minnesota includes payment delays and cuts. Here are details:

—Schools face $1.77 billion in accounting shifts, including a $1.17 billion reduction in 2010 that will be made up the next year, and an accounting change affecting $600 million in property tax receipts to save the state money.

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—Cities, counties and townships lose $300 million in state aid over two years. The smallest cities and townships and five sparsely populated counties are spared from the reductions.

—Health and welfare programs are out $236 million, including cuts to counties for mental health and chemical dependency treatment, caps on hours for personal care attendants, a delayed payment overhaul for nursing homes and an earlier phaseout of the General Assistance Medical Care program for very low-income childless adults.

—Public colleges and universities get $100 million less starting in July 2010, with the cut split between the University of Minnesota and the Minnesota State Colleges and Universities system.

—State agencies go back to their budgets to find another $33 million in cuts. The reductions won’t hit public safety, prisons, military and veterans agencies or sex offender treatment.

—Tax refunds for renters shrink, while refunds for political contributions disappear. Refunds for capital equipment sales taxes come later. Wisconsin is asked to pay Minnesota taxes under a reciprocity program sooner.

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