Budget Forecast: On February 29, 2012, the Minnesota Management and Budget Department released the February Budget Forecast which showed the state's budget outlook improved by $323 million.
General Fund revenues are estimated to be up $93 million more than in November and spending is estimated to decrease by $230 million.
By law, the entire forecast balance is automatically allocated to existing accounts. The first $5 million is added to the budget reserve bringing it to $653 million. The remaining $318 million is directed to paying back some of the school-aid shift from previous sessions.
Starting on March 15, 2012, the funds will be sent out to the schools according to a funding schedule. After this action, $2.4 billion in school payment shifts remains to be bought back.
One common question is how this forecast effects passage of a bonding bill this session. In general, the forecast assumes passage of a bonding bill, but not the size of the bonding bill.
The forecast doesn't impact borrowing for a bonding bill. Now that the February forecast has been released, it is full steam ahead as the Legislature continues to work bills through committee and puts together a bonding package.
Vikings Stadium: The long-awaited announcement about a "deal" for a new Vikings football stadium happened this week.
On Thursday, Governor Mark Dayton, Metropolitan Sports Facilities Commission Chair Ted Mondale, Chief Authors Sen. Julie Rosen and Rep. Morrie Lanning, several legislators, Mayor RT Rybak, labor and business leaders, together with the Minnesota Vikings, held a press conference to announce that they had reached an agreement on terms for a new Vikings' stadium. The fixed roof stadium, to be located on the current Metrodome site, has a total project cost of $975 million.
The $975 million stadium construction cost will be paid as follows:
$398 million from the state of Minnesota through the expansion of charitable gaming with the addition of electronic pull tabs; $150 million by the city of Minneapolis by redirecting a portion of the existing convention center and hospitality taxes; and $427 million from the Minnesota Vikings.
The proposal will require the team to play one season at TCF Stadium on the University of Minnesota campus. The next step will be for the agreement to be put into bill form and introduced in the House and Senate, followed by a series of legislative committee hearings.
Days on the Hill: Each legislative session, many organizations and associations bring buses of citizens to the Capitol for the opportunity for these citizens to talk directly to legislators.
These activities called "Day on the Hill" fill the halls of the Capitol and State Office Building with people wearing matching shirts, hats, name badges and other common attire.
This week was a big week for Days on the Hill. Among the groups at the Capitol this week were: Minnesota Telecomm Alliance, Congress of Minnesota Resorts, Minnesota Library Association, Parks and Trails Council of Minnesota, Minnesota Municipal Beverage Association, Duluth Days, Minnesota Licensed Beverage Association, Minnesota School Employees Association, Arts Advocacy Day, ARRM (Disabled Individuals), Minnesota Nurses Association, and others.
Looking Forward: Now that the calendar has turned the page to March, the legislature is moving into the time when the committee hearing schedules are full and late night hearings are common. The first policy committee deadline is Friday, March 16 - only two weeks away.
