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Environment bill aids some counties

ST. PAUL - Minnesota counties with lots of state-owned land may like an environment spending plan that protects state payments they receive.

Counties cannot impose a property tax levy on state land, so the state makes cash payments, which are maintained under a compromise plan developed by a House-Senate conference committee that both legislative chambers passed Monday night. To help balance the state budget, Gov. Tim Pawlenty proposed reducing those payments by 20 percent during the next two-year budget cycle.

The House approved the environment and energy funding bill containing the local payments 98-35, with the Senate following with a 52-15 vote.

The conference committee compromise cuts $78 million in environmental funding from the current budget. And it raises a range of fees more than $14 million.

"It is difficult to bring this bill back to you because it has deeper cuts than when it left the House," Rep. Jean Wagenius, DFL-Minneapolis, said.

The bill deals with a variety of environment and energy issues.

Minnesota House and Senate negotiators took many of Pawlenty's environment and energy funding recommendations, but not the one to reduce state payments in lieu of taxes.

It is just a fraction of total environment spending, but the $9 million in proposed cuts would have created a financial problem for counties expecting that money to pay for basic services, said Sen. Tom Saxhaug, DFL-Grand Rapids.

"That'd be disastrous," he said Monday.

Saxhaug, a conference committee member, said northern Minnesota counties with lots of state forest land would have suffered the most from those reductions.

But Republicans leaving a late-Monday afternoon meeting with Pawlenty warned that their fellow Republican governor may veto some items from the overall energy and environmental funding bill to bring its total cost down.

House Minority Leader Marty Seifert, R-Marshall, said he will help Pawlenty find line-item vetoes to lower the bill's cost. Otherwise, there appeared few Republican problems with the measure.

Overall, the negotiators' finance package proposes $737 million for environment and natural resources programs. That includes nearly $489 million for the Natural Resources Department and $180 million for the Pollution Control Agency.

The bill cuts spending to the DNR by more than 6 percent, when compared to what programs were projected to cost, said Wagenius, the House environment finance leader.

In addition, the bill provides $61 million to a variety of energy and telecommunications programs. Rep. Bill Hilty, DFL-Finlayson, the House energy finance chairman, said negotiators accepted most of Pawlenty's energy spending recommendations.

Energy and environment programs are funded with general tax dollars as well as special funds dedicated targeted to certain outdoors programs. Pawlenty and lawmakers propose new fees and fee increases to soften spending reductions.