- About Us
- Contact Us
January 1, 2011
Updated July 26, 2001
The MN Legislature passed the budget. While CDF-MN believes budget cuts should never target services for children, we are relieved that many cuts proposed in the earlier budget were omitted. Still many children and families will be severely impacted by cuts. Summary of what was preserved and cut.
How did Minnesota children and families fare in the final Health and Human Services budget?
See new analysis below. Please check back in the coming weeks for more information on Minnesota’s budget for Fiscal Years 2012-13 and its impact on Minnesota children and their families.
Following 19 days of government shutdown, the special legislative session began on July 19 and ended 13 hours later on July 20. The Republican controlled Legislature (Republicans hold 72 of 134 seats in the House, and 37 of 67 seats in the Senate) and DFL Governor Mark Dayton could not reach an agreement on how to resolve Minnesota’s $5 billion revenue shortfall prior to midnight on June 30. As a result of this impasse, our State entered its second government shutdown in its history – the longest shutdown in our country’s history.
Two weeks into shutdown, Governor Dayton and legislative leaders agreed to a framework for resolving the budget deficit. Under the agreement, Minnesota will spend $35.4 billion during Fiscal Years 2012-13 (July 1, 2011 – June 30, 2013). Because this amount of spending is $1.4 billion more than expected revenue, they agreed to borrow the difference. Half of the needed revenue will come from increasing the size of the payment shift to school districts; the other half will come from issuing state bonds against future payments from tobacco companies. Governor Dayton and legislative leaders also agreed to $2.2 billion in service cuts.
CDF-Minnesota is extremely disappointed that the final budget compromise did not include fair and progressive revenue. Borrowing to pay for our State’s obligations, especially when clear and just alternatives exist, is shortsighted. Furthermore, relying on $1.4 billion in one-time funds guarantees that Minnesota will be faced with the same challenges in less than two years.
Health and Human Services Budget
In the early morning hours of July 20, 2011, the Legislature passed a bill detailing the final Health and Human Services (HHS) budget for Fiscal Years 2012-13. Later that day, Governor Mark Dayton signed the bill into law. While CDF-MN believes that critical programs and services for Minnesota children should never be the subject of budget cuts and that our State should always prioritize investments necessary for the healthy development and well-being of our children (especially during difficult economic times), we are relieved that many of the cuts proposed in the Legislature’s earlier HHS budget (Senate File 760) were not included in the final budget. In fact, thirteen policy changes and program cuts totaling approximately $25 million were not included in the final budget bill.
Unfortunately, the HHS budget includes more than $81 million in cuts impacting the lives of our State’s youngest citizens and their families. (note: cuts to adult mental health grants and the MFIP Consolidated Fund, and $6.6 million in insufficient funding for Adoption Assistance and Relative Custody Assistance were not included in the calculation). While each cut is harmful on its own, many Minnesota children and families will be severely impacted by multiple cuts, thereby increasing the need for deeper, longer-term and costlier services in the future.
The following proposals, which would have negatively impacted Minnesota children and their families, were removed from the final HHS bill:
The following cuts and policy changes, which will negatively impact Minnesota children and their families, were included in the final HHS bill:
Note. Numbers 7-13 affect Minnesota’s Child Care Assistance Program (CCAP) and total $6.8 million in cuts.
 This amount does not include the proposed $38.2 million elimination of General Assistance or funding related to the Minnesota Defined Contribution Plan.
 This amount does not include cuts to Adult Mental Health grants and the MFIP Consolidated Fund, and $6.6 million in insufficient funding for Adoption Assistance and Relative Custody Assistance.