Earlier this month, Governor Mark Dayton released his supplemental budget for FY 2018-19, which makes a number of changes to the comprehensive budget proposal he released this January.
We’ve reported on the tax, health and human services, education, economic development, housing, and transportation parts of Dayton’s January budget proposal. The February forecast showed a larger projected surplus for FY 2018-19, $1.7 billion instead of $1.4 billion, so the governor was able to propose a few increased investments in his supplemental budget. His supplemental budget leaves $202 million in FY 2018-19 and $643 million in FY 2020-21 unallocated, or “on the bottom line.” This is critical as dramatic changes in federal funding to the state are under consideration.
The governor’s largest additional investment in the supplemental budget is $100 million in FY 2018-19 to expand access to voluntary pre-kindergarten. He also proposes $10 million for Pathways to Prosperity, which connects workers to education and training for in-demand jobs, as well as $10 million to local governments to protect water quality.
The supplemental budget also includes investments in health and human services; the largest ones would change pharmacy reimbursements and change the way federal funding is allocated for certain hospitals. Dayton also raises $42 million of non-general fund spending to address the opioid crisis.
This is an important time in the budget-setting process. The Senate and House released their targets earlier this month. Legislators are expected to put together their budget bills by March 31, and then will need to work out their differences in conference committee.