Saying Minnesota has to live within its means, Gov. Tim Pawlenty Monday trimmed the $1 billion capital budget sent to him by lawmakers down to $680 million.
The Republican governor trimmed about $144 million from higher education funding and more than $50 million from civic center expansion projects in several towns. Funding for various projects in nature areas was also cut.
"Reducing the bill to this level reflects my commitment to fiscal discipline and an attempt to prioritize important state projects," Pawlenty told lawmakers in a letter.
The Democratic-controlled House and Senate on Thursday approved the plan, known as the bonding bill, which relies primarily on general obligation borrowing.
Pawlenty said then he intended to sign it but warned he would cut it down in size. His original version of the bill released earlier this year totaled just $700 million, which he argued was the most the state could afford.
Democrats pushed through a larger package last month that totaled $1 billion, contending it was needed to create more jobs, but then did not send it to Pawlenty's desk after he threatened to veto it because of the absence of projects he supported.
After negotiations, lawmakers agreed to put in funding for several of the governor's priorities. Lawmakers now will focus on addressing the $1 billion shortfall in the current two-year operating budget.
The latest revenue estimate released earlier this month trimmed $200 million off the previous deficit estimate of $1.2 billion. The estimate warned that the state faces a $5.8 billion deficit next year as it crafts a fiscal 2012-13 budget.
Pawlenty has proposed erasing the red ink in the current budget through spending cuts and increased federal Medicaid funds. Democrats would like to offset some cuts with revenue increases.
