As I mentioned at the time, one of the things that jumped out from Gov. Pawlenty’s proposed budget is that he didn’t touch the state subsidy to ethanol producers. In 2007, the state paid $15 million to ethanol producers, and in the last big budget deficit, the state delayed the payments. Pawlenty, who has become an evangelist for ethanol, tried to eliminate the then-$27 million subsidy in his first year in office.
Today, seven House DFLers — mostly city slickers — introduced a bill that would repeal the state subsidy. The state sends checks to farmers who own ethanol plants four times a year.
In a recent interview, legislative leaders didn’t appear warm to repealing the subsidy:
As the session continues, the possibility increases of the city vs. rural legislative feuds reigniting. Within the last week some rural lawmakers filed legislative to divert transit funds to school transportation budgets.