The $2.7 billion deficit that remained after the session ended last year was reduced by the governor using his unallotment authority.   The governor shifted $1.7 billion in education funding.  Education hasn't really been held harmless.

Education is 40% of the undesignated general fund.  Yet, other areas of government have dedicated funding streams like the gas tax for transportation, the health access fees forhuman services and the Legacy Act sales tax increase for arts and parks.  As the following chart from Parents United shows, when evaluating all funding streams, education drops to 25.5% of Minnesota's budget.

Since 2004, the State's investment in K-12 education declined from 28.6% to 25.5% in total expenditures while Health and Human Services increased steadily from 36.2% to 41.3%.    A majority of the human services budget is directed towards health care costs such as nursing homes and health care for the poor and vulnerable.  Like in homes and in businesses across American, soaring health care costs are threatening economic stability and it is no different for the State. 

Education funding is set by the legislature.  Any increase or decrease requires legislative action.  On the other hand, some areas of government have "open and standing" funding where inflationary increases are built in.  Thus a reduction in these areas first reduces the increase before it cuts into the base funding.  Understanding how a program is funded is important in evaluating the depth and impact of a budget reduction.