2008 Supplemental Budget Bill Summary

HF1812 / SF3813

Printable version (PDF: 40KB/1 page)

House File 1812 is the Omnibus Supplemental Budget bill, establishing mid-biennium appropriation changes. The majority of the funding changes are general fund appropriation reductions to bring the state budget into structural balance from a $985 million forecasted deficit. The Minnesota Department of Heath (MDH) will receive a $4.13 million general fund reduction and a $467,000 state government special revenue fund increase in FY09 appropriations as a result of this bill, for a net decrease in funding of $3.663 million.

Background:
Governor Pawlenty’s supplemental budget proposal recommended a general fund reduction for MDH of $2.525 million, including a four percent administrative operations reduction ($1.1 million in FY09) and targeted grant reductions to four specific programs that had received appropriation increases in the last session ($1.425 million in FY09). It also included state government special revenue fund increases for food/beverage/lodging (FBL) inspections in St. Louis County ($435,000 in FY09) and expanded inspections of public swimming pools ($198,000 in FY09).  The swimming pool inspection proposal subsequently proceeded as separate legislation from this bill and has been signed into law by the governor.

Agency Impact:
This bill reduces the overall agency general fund appropriation by $4.13 million, an additional $1.605 million over the governor’s recommendation. These are base funding reductions, extending into the FY10-11 biennium. The reductions include:

  • A four percent administrative reduction ($1.1 million in FY09, same as the governor’s recommendation).
  • A 1.8 percent reduction to all general fund grants ($810,000 in FY09).
  • Elimination of funding for the MN ENABL (Education Now, Babies Later) program ($220,000 in FY09).
  • A reduction in supplemental MERC (medical education and research costs) payments ($2 million in FY09, $1 million in FY10-11).

The bill also fully funds the governor’s FBL recommendation ($435,000 in FY09) and adds a requirement for MDH to establish a voluntary health interpreter roster and develop a plan for a future certification system ($32,000 in FY09), both from the state government special revenue fund.

Public Impact:
MDH intends to minimize the impact of its budget reductions to the general public. The only direct agency program impact will be the elimination of the MN ENABL program, which works with teens, ages 12 to14, their families, and communities to help teens learn refusal skills and postpone sexual activity

The general fund grant reductions will reduce available funding for 25 grant programs, with the largest reductions affecting local public health, family planning programs, and community tobacco prevention grants. The supplemental MERC payment reductions will directly impact the Mayo Clinic.


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Updated Tuesday, 16-Nov-2010 12:27:56 CST