Minutes - 2010/05/24 - Laserfiche WebLink

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Mounds View City Council May 24, 2010 Regular Meeting Page 3 • reforming the State's pension funds. He explained that the budget has been imbalanced due to a reduction in sales and income t�es. After much time and discussions, the governor signed off on a balanced budget. Several of the K-12 bills were pushed into the next session. Council Member Mueller questioned how the legislature was working to increase the number of jobs in the State. Representative Tillberry indicated the jobs bill was fully funded and would create 20,000 jobs. He further reviewed the changes made to the K-12 bill with the Council explaining he chaired the Education Committee. Senator Betzold added that the capital investment bonding bill approved $600 million worth of projects in the State that would create jobs throughout the state. Council Member Mueller asked what purpose was served by the birth defect database for the State of Minnesota. Representative Tillberry noted this was Representative Murphy's bill and he recalled this bill would allow the State to greater transfer vital medical information. A concern on this bill would be privacy and stipulations were added through amendments. Council Member Mueller thanked Representative Tillberry for recognizing the City of Mounds View as a Crown Community in 2009. Council Member Stigney asked for comments on the recent articles in the Pioneer Press regarding contribution plans and defined beneiit plans. Both Senator Betzold and Representative • Tillberry had not read the article. Council Member Stigney presented each with a copy. Senator Betzold indicated he chaired the Pensions Commission and this has been an ongoing concern. The Senate made an amendment on the floor to turn all pension funds to defined contribution plans. This is a multi-billion dollar issue. Actuaries were now reviewing the issue and further discussion would take place at the next session. Representative Tillberry understood that a defined benefits plan would lock the members into a contract and he was looking forward to further discussions next session. Mayor Flaherty observed the bonding bill would create jobs but felt there was not stay-ability or longevity with the jobs created. He agreed with many of the line item vetoes from the governor. The budget deficit was extremely difficult to tackle this year and commended them both on their work for the State. Council Member Gunn asked why school districts were always the iirst to be cut. Representative Tillberry stated this was a great question, and explained the K-12 budget discussions were difficult and he agreed the school district did see most of the first cuts. The governor did have a lot of power over the budget and felt this was not benefiting the state. Senator Betzold indicated the Senator's are not taking a position to cut K-12 but when 50°Io of the budget is education, it creates a real challenge. School districts do not have the ability to levy so each has to work with the funding provided. He explained the economy is going to turn around which will provide a � shift in the current trend.