Wednesday, May 27, 2009

2009 Minnesota Legislative Update...

The 2009 legislative session concluded, as required by law, on May 18. The House and Senate submitted a balanced budget to the Governor, however, the Governor’s veto of their tax bill has created a $2.8 billion deficit for the next biennium, which starts July 1. To balance the budget, the Governor has indicated he will not call a special legislative session, but will instead use his unallotment authority to make spending cuts starting July 1. At this point, we do not know what cuts the Governor intends to make. I'll try to share information as it becomes available about the unallotment and the Governor’s plans. This is an unusual outcome for a legislative session.

Several early education and child care bills were passed and signed this session. The Health and Human Services omnibus bill made no cuts to the Child Care Assistance Program and allocated $8 million in federal stimulus funds to help shorten the waiting list for Basic Sliding Fee funds that help working families afford child care.

The Health and Human Services bill also included funding specifically for improving the qualtiy of child care services. $1.6 million was allocated to continue the School Readiness Connections pilot program and language that links the pilot to the Quality Rating System. $3.4 million will be used to continue the Family, Friend and Neighbor pilot program; the Parent Aware Quality Rating System Pilot Program; and fund quality improvements for providers to prepare for participating in the Quality Rating System.

It is disappointing that the Health and Human Services bill used $5.2 million in Basic Sliding Fee funds waiting for re-allocation to Minnesota counties to help solve the state’s budget deficit (i.e., the funds went back to the state’s general fund and will not be used specifically for child care), but overall, the bill was a strong outcome and signals that legislators recognize that affordable, high-quality child care is a critical investment for Minnesota, especially in a difficult economy.

The Governor also signed the E-12 Education bill, leaving intact all of the early childhood provisions. Unfortunately he line-item vetoed several items when he signed other major omnibus spending bills. Specifically:

Again, I'll keep you informed as more details become known.


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