Senate $210 million bill benefits preschool programs, caregivers

April 09--The Minnesota Senate voted Tuesday to spend $210 million over the next 15 months to provide raises for caregivers for the elderly and disabled, fund preschool programs, fix potholes, lock up more criminals and provide extra cash to dozens of other state programs.

The bill taps the state's $1.2 billion surplus to supplement the two-year, $39 billion budget the Legislature passed last year.

"This is relatively small bill, but it does some important things," said Senate Finance Committee Chairman Richard Cohen, DFL-St. Paul.

It's one-third smaller than the $322 million budget bill that the House passed last week. House and Senate negotiators will try to resolve their differences and send a unified measure to Gov. Mark Dayton after a break for Passover and Easter.

During a four-hour debate, Republicans offered more than 20 amendments, many calling for overhauling the state's MNsure health insurance exchange, but all except a few noncontroversial proposals were rejected by the chamber's Democratic-Farmer-Labor majority before they passed the bill on a 37-27 vote.

Republicans argued the bill called for excessive spending. Senate Minority Leader David Hann, R-Eden Prairie, said they supported pay increases for caregivers and filling potholes, "and then with the rest of the surplus, return it to the taxpayer, return it to the economy of the state, making sure that members of the public have surpluses, not the state budget."

But Cohen said the money will go to health care, education and other programs that members of both parties have repeatedly stated "how needed and appropriate it is."

The Senate bill, like the House version, provides a 5-percent state rate increase aimed on preserving the quality of care for the 92,500 elderly and disabled persons who need help to stay in their homes and community-based facilities, rather than nursing homes.

The Senate bill allocates $80 million for those services and requires service providers to spend at least 80 percent of the rate hike on pay for the 91,000 caregivers who work in those programs.

State pay rates for those services have been cut several times in recent years. Proponents said a funding increase is needed to provide competitive pay for caregivers and reduce turnover. It had broad bipartisan support in both houses.

Low-paying rural nursing homes would share a $2 million state subsidy to help them cover the anticipated increase in the state's minimum wage.

The next-largest appropriation in the bill provides $41 million in new education funding, with more half the money dedicate to pre-school programs.

"If you invest in early education, we're going to get a return of 16 to one," said DFL Sen. Charles Wiger of Maplewood, chairman of the Finance Committee's education division.

The bill provides an additional $8 million for preschool scholarships and lifts the current $5,000 per student cap will be lifted. Another $12 million would be spent for early childhood family education and school readiness.

The House bill would spends less on preschool programs but would provide every public school with a $58-per-pupil increase in state aid at a cost of $75 million next year.

Both bills would ensure hot school lunches for students who can't afford to pay for them. They allocate $3.5 million to pay for the meals.

A February report from Mid-Minnesota Legal Aid found that 15 percent of the state's school districts will refuse meals to students who cannot pay and about half provide a less nutritious meal.

The Senate bill also provides $9 million for training for the new teacher evaluation law set to take affect statewide this fall.

There is also funding for things like teachers home visits with students' families, the collection of data about special education services and academic programs for students learning English.

Public colleges would receive an additional $26 million next year, with $17 million aimed at helping Minnesota State Colleges and Universities "retain high-quality faculty and staff."

To help recent graduates get lower interest rates on college loans, the bill authorizes the state Office of Higher Education to create a student loan refinance program.

To repair roads damaged by brutal winter weather, the bill provides $20 million to fill potholes and also allots $10 million to replace snow plows and purchase other ice and snow removal equipment.

With judges handing down prison sentences at a faster pace than expected, the measure gives the Corrections Department an additional $11 million to house more prisoners and pay for renting beds in county jails.

To avoid unnecessary special legislative sessions, the bill creates a $3 million disaster relief fund that state officials could use to provide emergency natural disaster aid without lawmakers' approval.

Christopher Magan contributed to this article. Bill Salisbury can be reached at 651-228-5538. Follow him at twitter.com/bsalisbury.

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