MN House Passes Republican Bill To Help Balance State Budget (Audio)

Friday, January 28th, 2011 at 10:31 am

On Thursday, the House voted 68-63 in favor of HF130; House File 130 is Phase 1 of the legislature’s budget balancing efforts.

The bill calls for making permanent the unallotments agreed to by the legislature in 2010. This means that cities will receive the same amount of local government aid in 2011 that they received in 2010.

Overall, the state is expecting a 5 to 6% increase in revenues in the upcoming biennium; but if left unchecked, state spending would rise by 24 to 27%,

Speaking in favor of the bill on the House floor Thursday night: Representative Greg Davids, (R-Preston), who chairs the House Taxes Committee. He said HF130 will not resolve the entire budget shortfall, of 6.2 billion dollars, but it is a good start. Here is an excerpt of what Davids said:

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The Senate is working on a similar bill; if the House and Senate pass different bills, a conference committee would be named to work out the differences.

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