Senate Republicans held a press conference yesterday highlighting up to $600 million in wasteful or unnecessary spending identified in the state budget. Republican leaders emphasized that these funds could be better used to support essential services and reduce the financial burden on Minnesota families. 

“Minnesotans have been asking us to address the waste and abuse that has been occurring in our government and Senate Republicans put together a cohesive plan to stop the waste and instead focus on initiatives that prevent future budget mismanagement,” said Senator Jeff Howe (R-Rockville). “We’ve uncovered about $600 million in wasteful spending, and most taxpayers find that totally unacceptable. Much of the wasted funds could be better spent on critical services. With a $6 billion deficit on the horizon, we’re presenting a plan that will reduce wasteful spending and help get our budget and priorities back on track.”

The first proposal was to undo an earmark of $21 million to fund a public option health care plan that has yet to be passed.

Republicans also pointed to several key areas in transportation, where spending reductions could immediately save taxpayers around $250 million:  

• NLX Passenger Rail – $194.5 million dedicated to the Northern Lights Express rail line, which has faced ongoing questions about feasibility and ridership.
• Reconnect Rondo – $500,000 remaining from the original $6.2 million appropriation for this neighborhood reconnect project.
• Blue Line Extension – $30 million for a light rail extension project that continues to face delays and cost overruns.
• NorthStar Rail Cancellation – $22 million per biennium that could be saved by ending the underperforming commuter rail line.

There are also a number of expensive benefits that provide undocumented non-citizens with free health care, college, and even some tax credits, to the tune of up to $378 million:

• MNCare for Undocumented non-Citizens– $220 million in taxpayer dollars allocated to expand MinnesotaCare coverage for undocumented non-citizens.
• North Star Promise for Non-Citizens– $86,000 for tuition assistance to undocumented students under the NorthStar Promise program.
• Tax Credits for Non-Citizens (ITIN)*– $158 million in tax credits for individuals without a Social Security Number.

As the final portion of the proposal, Senate Republicans also introduced a series of good government proposals designed to prevent future budget mismanagement and ensure greater accountability in state spending:  

• Financial Disclosure by Legislators– Requires legislators to disclose any financial ties to entities seeking state funding; prohibits legislative staff from being paid by organizations receiving state funding.
• Restrictions on Grants to Nonprofits with Highly Compensated Officers– Prevents state grants from going to nonprofits where officers or employees receive excessive compensation.
• Vacant State Office Space Report– Mandates regular reporting on unused state office space to improve efficiency and reduce costs.
• Sunsets for Commissions and Working Groups– Requires commissions and working groups to sunset after two years unless reauthorized by the legislature.
• Zero-Based Budgeting– Implements a zero-based budgeting process every 10 years to ensure all state spending is justified and evaluated for necessity and effectiveness.

“This plan is a start, but there is much more to be done towards a sustainable budget that covers Minnesotans’ needs,” finished Howe.

Republicans are offering this plan to demonstrate the necessity of reducing wasteful spending to avoid drastic cuts to essential services and restore integrity to the budget.  

*Not all ITIN filers are non-citizens here illegally. An inquiry to find the difference between legal non-citizen filers and illegal non-citizen filers was not available by the time of the press conference. See the federal guidelines on ITIN for additional information.