Budget battle lines taking shape at MN Capitol

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Gov. Mark Dayton and Lt. Gov. Tina Smith outlined their supllem,ental budget recommendations during a state Capitol news conference. Tim Pugmire|MPR News

Minnesota Senate Republicans released a budget outline Friday that boosts spending for education, health care and transportation.

They also plan deep cuts to state agency operating budgets and to environment and natural resources programs.

The numbers follow Thursday’s announcement of a $900 million tax cut proposal.

The budget numbers reflect the Republican caucus’ values and priorities, said Senate Majority Leader Paul Gazelka, R-Nisswa, in a news release.

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“This budget proposal combined with a new positive tone at the Capitol should give everyone optimism about finally making progress on the issues that matter to all Minnesotans.”

The Senate GOP plan would increase spending for transportation by $570 million over the current biennium. Spending for E-12 education would rise by $1.1 billion. Health and Human Services would see a $2.2 billion increase, but that is far less than the forecast growth in that area of the budget.

State government operating budgets would see a significant $357 million cut.

Senate Republican leaders have repeatedly stressed that their budget would spend less than DFL Gov. Mark Dayton's proposal.

Earlier in the week, Dayton warned Republican leaders in a letter that he will not accept arbitrary across-the-board cuts to state agencies.

“There is no rational reason to cut agency budgets in the face of the increased needs of our citizens,” Dayton wrote.

Meanwhile, Dayton updated his own budget proposal Friday.

Dayton is proposing to spend an additional $100 million to expand voluntary pre-kindergarten opportunities in the state. That’s on top of his earlier plan to spend $75 million on pre-k. He said it was his priority for the new recommendations.

With the latest economic forecast showing an additional $250 million in surplus money to work with, Dayton detailed $147 million in additional spending. Other proposals include $22 million for a program to battle opioid abuse and $3.8 million to conduct a study and demonstration project on an expansion of Northstar Commuter Rail service to St. Cloud.

Dayton said he also wants $200 million put into a contingency savings account.

“Families put away money into savings accounts,” Dayton said. “Given the uncertainties of the federal budget in particular and its impact on Minnesota, I think it’s just part of the prudence we need to establish.”

House Republicans are expected to put out their budget numbers next week.