
A few months ago, it looked like Minnesota’s long-deferred confrontation with its structural budget troubles would start in earnest in session 2010. But it won't play out that way.

When Gov. Tim Pawlenty included $387 million in anticipated federal FMAP (Medicaid) funding in his proposal to solve the state’s budget deficit, Democrats gleefully attacked the move as budget gimmickry. They pointed out — repeatedly — that the money had not yet even been appropriated by legislators in Washington.

The state’s 2010-2011 general fund deficit dropped by more than $200 million on Tuesday in the semi-annual economic forecast.

The gaming machine may have provided a novel wrinkle in Minnesota's never-ending debate over legalized gambling. But otherwise, Thursday's hearing on various gaming measures introduced by legislators was as predictable as a blackjack deal.

The leaders of the Minnesota House and Senate this morning ordered Department of Human Services Commissioner Cal Ludeman not to spend state money on the automatic transition of those enrolled in General Assistance Medical Care (GAMC) into the state's MinnesotaCare program.

When Senate Majority Leader Larry Pogemiller (DFL-Minneapolis) appeared before the press on Monday to react to Gov. Tim Pawlenty's supplemental budget, one key point of emphasis was his vow to reduce the size of Pawlenty's proposed $250 million cut in aid to local units of government. On Thursday, Sen. Tom Bakk (DFL-Cook), whose Taxes Committee will be taking up the matter of local government aid, told PIM he's aiming for a package that limits those cuts to roughly $100 million.

At first blush, it would seem that Democrats should have little difficulty overriding Gov. Tim Pawlenty's veto of General Assistance Medical Care legislation. The bill passed both legislative chambers, after all, by overwhelming margins. The House backed the revamped health-care program -- which provides coverage to poor, single adults -- by a 125-9 margin. The Senate then ratified the decision by a 47-16 margin.

Finance Commissioner Tom Hanson had the unenviable task earlier this week of defending Gov. Pawlenty's plan to close the state's budget deficit to a gathering of the Balanced Budget Subcommittee of the Legislative Commission on Planning and Fiscal Policy.

Let the budget games begin. Gov. Tim Pawlenty released a plan to eliminate the state's looming $1.2 billion deficit on Monday. The largest element of the governor's plan: $387 million in anticipated federal health-care dollars.

The Capitol was packed for Governor Pawlenty's final State of the State address.
Next Page »