Following are a few ways the proposed budget cuts might impact the lives of Minnesotans. (spring 2003)

child care assistance and after-school programs

Child care funding will be reduced by about $18 million, about 10% of the state's commitment. A 10% across-the-board increase in co-pays (except for families between 75-100% of the federal poverty guidelines, who would pay $10 instead of $5) is being proposed. State funding for Early Childhood Family Education is reduced by 50%. Remaining funding is targeted to low-income areas. Programs are allowed/ encouraged to increase parent fees. In December 2002, 5,600 families were on the waiting list for basic sliding fee child care assistance.

The Governor proposes entire elimination of state funding for After School Enrichment Grants, Way to Grow, and Family Collaboratives. Children's mental health programming is cut by combining a number of existing programs dealing with child safety and well-being into a new block grant and reducing overall state funding by $12.5 million in 2004 and $25 million in 2005, a 27% reduction.

health care coverage

The Governor has proposed eliminating General Assistance Medical Care, merging it with MinnesotaCare and reducing the number of people on MinnesotaCare by limiting eligibility and raising premiums and co-pays. Administration officials estimate more than 60,000 people will lose health coverage using the most conservative estimates. The real impact is probably closer to 80,000 people. This means higher costs for the system as people forego or postpone care. It will frighten vulnerable people, especially mental health clients, and will plunge premium-payers deeper into poverty. A person earning as little as $542 a month is expected to pay $300 per month to enroll in MinnesotaCare. Other health care service cuts include a 8.2% funding reduction to nursing homes, elimination of health care payments for undocumented or temporary residents, including pregnant women, and a rollback in the commitment to cover all kids.

The Governor also transfers the tobacco endowment principle into the general fund which eliminates the health promotion and disease prevention programs that had been funded with earned interest.

education

Overall funding for K-12 is kept intact but the budget ignores the impact of inflation so flat funding will result in classroom and service cuts. In addition several categorical grant programs for special education and English Learning are being reduced.

Workers seeking to update their skills through the Minnesota State Colleges and Universities System (MnSCU) or the University of Minnesota face double-digit tuition increases.

The Governor has proposed cuts of 10% from the state colleges system and 15% from the University of Minnesota.

senior services

Many of the programs that enable senior citizens to live independently such as Meals on Wheels, senior nutrition, affordable housing, and other programs face cuts. It is more cost effective for folks to stay in their homes, rather than be in long term care facilities.

public safety / public services

Our local fire fighters, police officers, nurses, librarians, park maintenance workers, and many others work to keep our communities safe and livable. General aid programs for cities are cut by 29% in the Governor's budget, and counties are cut by 20%. Cities and counties will have to make up for these reductions through service cuts, fees, or property taxes. Many cities and counties have already begun the process of cutting police, fire, social services, libraries, park and recreation, public health services.

The cuts also will impact the ability of counties to provide services such as road maintenance, 911 dispatching, courts and jails, waste management, child protection, immunizations, nursing homes, community development, veterans' assistance, and meals on wheels.

other resources

learn more about impact of the proposed cuts

The Minnesota Council of Nonprofits has developed a spreadsheet which includes detailed descriptions of programs and services that are impacted by the Governor's budget proposal. The list is not exhaustive, but focuses on cuts that would directly impact nonprofit organizations, low- and moderate-income persons, and other vulnerable populations. The spreadsheet will be continually updated throughout the session, so be sure to check back again. Link to the spreadsheet

The Minnesota Budget Project provides independent research, analysis, and outreach on budget and tax policy issues, emphasizing their impact on low- and moderate-income persons and the organizations that serve them. To find helpful analysis on the state's financial forecasts, the unallotment decisions made by the Governor in February, the federal stimulus package, and many other issues, visit the Minnesota Budget Project website.

try your hand at balancing the budget

Link to Minnesota Public Radio's on-line "Budget Balancer." Visitors can choose how to cut expenses and raise revenue within the main areas of the budget and then learn the consequences of each choice. Flash software required.