Federal money will mean budget do over

State lawmakers say the federal economic stimulus bill will require Gov. Tim Pawlenty to rework his budget proposal.

The issue came up today during a meeting of the Legislative Commission on Planning and Fiscal Policy. Management and Budget Commissioner Tom Hanson explained that strings attached to the federal money will likely prevent the governor's proposed spending reductions for health and human services programs. The governor's use of an accounting shift for K-12 education funding also appears to put federal money in jeopardy.

"Basically, we're really talking about a do-over budget for the governor at this point," said House Speaker Margaret Anderson Kelliher, DFL-Minneapolis.

Hanson largely agreed with Kelliher analysis.

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"I don't know if the whole budget is a do over." Hanson said. Human services most likely will be."

But when Kelliher reminded the commissioner that human services represent a third of state spending, and education is an even bigger piece, Hanson revised his do-over calculation.

"Well, probably 85 percent of it," Hanson said.

After the meeting, the House Republican minority leader issued a news release to criticize Kelliher and her comments.

"Speaker Kelliher's caucus has offered very little in terms of its own ideas for balancing the budget and growing jobs," said Rep. Marty Seifert, R-Marshall. "While Republicans have put forth numerous ideas and Gov. Pawlenty made his proposal, Democrats continue to recline in the easy chair and not offer any solutions."