Budget deficit dominated discussion
By KURT NESBITT — Journal Staff WriterNEW ULM - The projected budget deficit took center stage Tuesday morning as Brown County officials sat down to discuss the upcoming legislative session with the two state legislators that represent the county.
As in years past, the county board scheduled one hour for each legislator. County department heads brought - and voiced - their own concerns to State Sen. Dennis Frederickson of New Ulm and Representative-elect Paul Torkelson of St. James.
Frederickson was the first to meet with the board, one minute after the meeting began. He started the conversation by saying, "I don't like to be compared with Scrooge. I would rather be compared with Cratchet."
He said cuts and reductions are the most likely to occur since the legislature will reconvene too late in the fiscal year to raise fees.
Frederickson said the February economic forecast will be worse than the one released last month.
The recession began at the end of 2007 and is expected to be longer and deeper than previously anticipated, he said.
Frederickson said spending is based on current law, so if there are no law changes, then K-12 education in fiscal 2010-11 would loose $22 million and public safety would loose $18 million. Spending on higher education would not change. Health and human services would see a $498 million increase in spending. Debt service would increase by $45 million. Property tax aid and credits would increase by $28 million.
"I've hear from tax committee people that there's no way we're going to tax our way out this," he said.
Legislators are watching Congress to see what it does with respect to the economy. He said consumer confidence is going to have to return in order to stir the economy.
Health and human services costs may increase because of people loosing their jobs and loosing healthcare.
Job and healthcare losses and unemployment insurance limits will put a burden on the state and its counties, Frederickson said.
County officials took turns telling Frederickson about their concerns. Many officials advanced concerns articulated by the professional associations that are involved with their particular areas of expertise, such as the Assessor's Association, Public Health Association and the Association of Minnesota Counties.
County Commissioner Charles Guggisberg asked the senator if he thought partisanship is the cause of the problems at the capitol. Frederickson replied that it has diminished significantly in the Senate, which is reportedly not as partisan as the House of Representatives. Caucuses are working on reducing partisanship even further.
Partisanship is not necessarily something that only happens along party lines. It is geographic in some cases, with representatives from the metropolitan area sometimes opposed to those representing greater Minnesota, and representatives from both of those areas squaring off against each other.
Guggisberg acknowledged that partisanship sometimes happens because different areas sometimes have different needs.
Brown County Administrator Chuck Enter asked about the county property tax aids. Frederickson said the governor has the final decision about those aids and he can choose to unallot some of those payments.
Brown County Highway Engineer Wayne Stevens asked about the possibility of an economic stimulus package that would involve transportation funding, including road bonding.
Frederickson said there is little talk in St. Paul about road bonding because the state is presently at its limit.
Family Services Director Tom Henderson told the room to "keep in mind this recession is really opening lots of applications for medical (programs). We are just inundated with people checking them out."
Henderson said Family Services had plenty of visitor traffic in its lobby but few actual applications for medical programs. He said the visitors were largely "checking out the safety net."
On that note, Henderson brought up another concern - the sheer number of Medical Assistance rules. He said a reduction ought to happen during the legislative session.
Commissioner-elect Deborah Dove, who sat in observation during Tuesday's meeting, said unemployment in Minnesota is rising at a faster rate than the national rate. Commissioner Charles Guggisberg added that while Brown County has not seen large layoffs, many area businesses have cut shifts and cut jobs which may amount to 12 to 20, depending on the business.
Public Health Director Karen Moritz handed Frederickson a packet of agenda information from the Public Health Association. She said the department does "quiet things" like prevent outbreaks of diseases.
Next, the county law enforcement and corrections officials told Frederickson about the 50 percent reimbursement rates probation agents are fighting for as well as funding for the area drug task force, which will loose federal funding next year.
Frederickson told Sheriff Rich Hoffmann the state won't have money for the organization because of the deficit. Hoffmann expressed concern that narcotics activity would increase in this area without the task force.
"...Not that we don't realize the problem, but we can't fund it without revenue," the senator said.
Torkelson visited the county board later in the day.
"I've never held public office before, I haven't been sworn in, so I take no responsibility," he said at the beginning of the discussion.
The Representative-elect had a similar outlook to his Senatorial counterpart. He said the budget is "the big topic at the capitol." Local Government Aid is one topic being discussed, but Torkelson said he hasn't been privy to any discussions about the budget.
County Board Chairman Andrew Lochner asked the freshman representative if he had a feel for his committee assignments. Torkelson said he applied for the Clean Water Council and requested to join the finance committees for environmental and natural resources, agriculture, transportation and telecommunications committee, though he thinks the possibility he will be allowed to join those committees are slim.
He mentioned talk of federal money for infrastructure projects as mentioned by President-elect Barack Obama, saying he is meeting with Congressman Tim Walz today to talk about the possible infrastructure investment and what it could mean for this state.
Torkelson said the shortfall will force legislators to re-evaluate the state's relationship with its counties, which will provide an opportunity to 'clean up' parts of state government.
Following the two discussions, county officials Tuesday:
Approved the sheriff's request to implement "pay-for-stay" fees that will require county jail inmates sentenced in Brown County to pay $20 for each day they spend in the jail. The fee will not apply to out-of-county inmates, for whom the county already charges a separate rate of $60 per day, or to short-term state offenders from Brown County who will not be charged to finish their prison sentences in the county jail. Officials said the new fee will start Jan. 1, 2009. The county entered into a contract with a debt collection agency in Foley to collect any delinquent accounts.
Approved a $17,455 quote for a Ford Fusion car for Family Services.
