The Minnesota Legislature passed a compromise bill this week that reduces state spending by about $300 million. It’s part of an effort to solve a major piece of the $1 billion budget deficit facing the state before the Legislature breaks to observe the Passover and Easter holidays next week.

The Senate is breaking up the budget process this year, largely because recent action by the federal government may mean an influx of money for Minnesota, which could reduce the deficit that needs to be solved. We know at the very minimum, about $300 million needs to be cut from state government spending to balance the state’s books, so the Legislature moved forward with that piece this week. It’s quite possible that a significant portion of the remaining shortfall — about $700 million — could be addressed through federal funds pending action by Congress right now.

Although the state won’t know for sure whether those funds are available for a few more weeks, we didn’t want to wait to address the budget deficit when there was work that could happen right now. Passing the initial bill early also helps ensure that required budget cuts don’t get bogged down among the dozens of bills that will be passed at the end of session in May. In addition, the earlier spending reductions can take effect, the greater and more immediate impact they will have on the state’s budget stability.

For example, cuts passed today have 14 months — until June 2011 — to help stabilize this biennium’s budget; spending cuts that happen later have less time to make up the same amount of money.

The budget-cut bill passed this week reduces spending in nine major budget areas, including state agencies, the courts, and aids to local governments. The cuts are similar in size to those proposed by the governor earlier in the session and, admittedly, they will be very difficult to absorb. But given the size of the immediate budget deficit, as well as the $6.4 billion shortfall projected for 2012-2013, large spending reductions must be part of the total budget solution.

However, the Senate has been working to mitigate the cuts so they have the least-possible effect on core services and programs. For instance, under the governor’s budget, cities and counties would lose $250 million in 2011 and nearly a half-billion dollars in future years. Local governments have told us that cuts delivered at the governor’s level would certainly cause property tax increases, a reduction in local public safety and other services, and layoffs for many public employees.

The Senate’s budget bill tempers local government reductions to $105 million a year, about $50 cut to cities and $50 million cut to counties. For comparison’s sake on what these cuts would mean locally: Gov. Tim Pawlenty’s budget would eliminate $970,744 million from Austin’s budget in 2010-2011; the Senate’s budget cuts $407,991 million. For Albert Lea, the governor’s budget cuts $853,618 million in 2010-2011, and the Senate’s budget cuts $358,764 million. As I said, both present difficulties for our local governments, but the Senate is working hard to ensure the cuts do as little damage as possible.

Although these cuts are less damaging than other proposals, they still were difficult for the Senate to make, given our traditionally strong reputation of fighting to preserve and improve state aids to cities and counties.

However, this first budget-cutting bill is an attempt to compromise between the Senate’s philosophy and the governor’s more dramatic cuts. We plan to continue that process toward compromise as committees finish crafting remaining budget bills, aiming for cuts that are better balanced and less detrimental for Minnesota’s communities and families.

Please don’t hesitate to contact me with your suggestions or concerns as the budget process continues. You may reach me at sen.dan.sparks@senate.mn; 651-296-9248; or Room 317 State Capitol, St. Paul, MN 55155.

Dan Sparks, DFL-Austin, is the state senator for District 27.