History Matters

The Minnesota Historical Society 2009 Legislative Agenda:

Biennial Operating Budget

Updates

  • June 4, 2009: Society budget remains uncertain; plans for reductions or further cuts possible.

The Society’s state operating budget appropriation for the biennium starting on July 1, 2009 remains uncertain. We’re waiting to see whether Governor Pawlenty will use the “unallotment” process to cut funding further than the 8.6% reduction to the Society’s budget passed by the legislature and signed by the Governor in May. We won’t have official information on additional cuts until later in June at the earliest. Faced with this situation, the Society's management is planning to reduce its budget by 8.6%.

As previously announced, at this level of reduction it is necessary for the Society to reduce public hours at some sites as well as implement staff layoffs resulting in reduced levels of service in other areas of the Society’s operations. However, if the 8.6% cut stands, we will keep all of our current sites and museums open to the public at some level, though there will be significantly reduced public hours. If the Governor uses the unallotment process to cut funding further, we will form a plan to handle that eventuality. Such a plan would mean even fewer public hours at some historic sites, perhaps even closure to the public and additional staff layoffs. In addition, the Society is projecting a shortfall in non-state funds, including admission revenues, as well as individual, corporate and foundation donations, making sustained support from members more important than ever.

As for new funds for Minnesota history as a result of the Legacy Amendment, the Minnesota History Coalition’s recommendation has been passed and legislature has appropriated $22 million in Legacy funds for history programs and projects statewide, during the 2010-11 biennium. These funds are dedicated to new projects – the constitutional language requires that funding from the Legacy Amendment “must supplement traditional sources of funding for these purposes, and may not be used as a substitute.” This means that funding from the Legacy Act appropriation cannot be used as a substitute for existing funds. Specific uses of the funds are being determined and will include statewide historic and cultural grants, Society preservation and educational programs and funding for history programs carried out by partnerships and an exhibit on Minnesota History at the History Center.

  • May 15: Economic Development Budget Bill Signed; Overall Budget Not Settled Yet

Governor Pawlenty signed the Economic Development Budget Bill, which contains funding for the Minnesota Historical Society’s operating budget. However, the overall state budget picture remains unsettled. At this point, the budget setting process is not necessarily over. Should the Governor and Legislature not agree on an overall budget plan for the state, the Legislature could end up in a special session to finalize the budget. Or, there is the possibility that in order to balance the budget once the new fiscal year begins on July 1, the Governor could “unallot” funds from many areas of the state’s budget to balance the budget.

While this budget still contains a significant reduction, 8.6% of the Society’s operating budget, it is far less severe than originally proposed. This 8.6% reduction level will result in layoffs, reduced open hours to the public at historic sites and museums, and other reduced services to the public. Society management will be working in the next several days and weeks to assemble a budget plan that will reflect this budget appropriation level, as well as the funding that may be provided in the Legacy Act budget bill, which is expected to pass soon as well.

  • May 14: Governor Pawlenty has signed the Economic Development Budget Bill, which contains the MN Historical Society's operating budget funding.
  • May 8: The Economic Development Bill was re-passed by both House and Senate. It was changed to take into account the issues the Governor had raised with the initial version of the bill. The new version will be in the Governor's hands and then he has 3 days to either sign or veto it.
  • May 7: Governor Pawlenty has vetoed the Economic Development Bill in its entirety. This bill includes the Society's operating budget. We are monitoring the situation to see if the legislature changes the bill to address the Governor's concerns and re-passes it quickly, or if the process takes longer and other changes are made, which may include the MHS budget.
  • May 6: The Economic Development budget bill has passed in both the House and Senate and is now being considered by the Governor. He may elect to sign or veto the bill.

    If signed, the bill would reduce the Society's operating budget by $1.583 million, or 8.6%. That reduction is in addition to a significant reduction of approximately $2 million in our non-state revenue each year of the next biennium.

Background

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Outdoor and Cultural Legacy Amendment

Updates

  • May 22nd- Governor Pawlenty signed the Legacy Act appropriations bill

This bill appropriates funding for the constitutional amendment approved by voters on November 4, 2008. It provides significant funding for history programs, both those conducted by the Minnesota Historical Society as well as partner organizations that also carry out history programs across the state. In all, the legislature appropriated $22 million in Legacy funds for history programs for the 2010-11 biennium.

Please take a moment to thank your legislators for all of their work on the Legacy Amendment.

  • May 18- Legacy Act passed by legislature

Clearly history is valued by legislators, which is reflected in the appropriations made as part of the Legacy Act. There will be lot of work to do in the coming days, months, and years, but the history community is in an excellent starting position to move forward, carrying out the mission to help Minnesotans learn about their history and cultural heritage.

There is language that accompanies each appropriation, and there are many requirements in the bill for accountability, transparency, and directions on the use of funds. Read the official bill here.

  • May 12: Legacy Act conference committee members have been appointed.
  • May 8: Both the House and Senate versions of the bill were passed and are expected to move into conference committee to be reconciled. Final action is expected this week.
  • May 6: The Minnesota House and Senate are each in the process of assembling Legacy Act bills (House and Senate versions). Both have significant funding for history. In the next few days, this bill will be in a conference committee.

Background

During the 2008 legislative session, the Outdoor and Cultural Legacy Bill was approved and placed on the November general election ballot. The constitutional amendment asked Minnesota voters to increase the state sales tax by 3/8ths of a percent and dedicate the revenue to the outdoors and cultural heritage.

In the final language of the bill, it was decided that 19.75% of the additional sales tax revenue would be dedicated to the arts and cultural heritage, which would include funding for Minnesota history. At current estimates, there could be close to $50 million of additional revenue available to be used for the preservation and enhancement of state history, culture, and arts.

With the constitutional question passing on the support of over 56% of all Minnesota voters, it was very clear that citizens supported the purpose and intent of the Legacy Amendment.
In order for future generations to enjoy Minnesota's rich history and cultural heritage we need to invest today.

Currently, the Minnesota History Coalition has recommendations to guide legislators in their decisions on the Arts and Cultural Heritage portion of the Legacy funds.

Historic Preservation Tax Credit

  • May 18- Tax credit not included in final tax bill

Despite a great grassroots effort, joining a strong coalition of organizations working on a package of job creation measures, and some strong support from key legislators, the historic tax credit proposal was not included in the last Tax Bill passed by the legislature before they adjourned for the year. However, this year provided the tax credit a lot more visibility than in previous years. 

Even with this disappointment, we intend to work on this income based historic tax credit next year with the hope of joining 30 other states that provide such assistance for historic preservation projects.

Please take a moment to thank your legislators for their consideration.  You can find out information about contacting your legislator here.

Background

A coalition of historic preservation advocates, local history organizations, local governments and developers have been actively promoting legislation that would allow a credit on state income taxes equal to 25 percent of the qualified cost of a historic rehabilitation of residential or income-producing properties. The proposed legislation is similar to an existing federal tax credit and provisions in over 29 other states. It would encourage private investment in historic properties in both urban and rural Minnesota, generating jobs and stimulating economic development.

In recent legislative sessions this coalition has advocated for the passage of the Historic Preservation Tax Credit but it has failed to pass. Given the economic climate this proposal is more important than ever since it help to create much needed construction jobs, while helping to preserve the identity of communities statewide.

How to Help

The Minnesota Historical Society seeks to serve the people of Minnesota with the help of a generous appropriation from the Legislature and the Governor. As a leading historic and cultural institution in Minnesota, adequate funding to the Society provides a significant and lasting investment for all Minnesotans. Costing less than $5 per citizen annually, the interpretive impact of the Society’s activities can be seen statewide from educational programming for students and teachers, collections, public programs, and historic sites.

1. Now is the time to take action to support history! Contact the following people and thank them for supporting history:

Thank you for your efforts!

2. 'History Matters Mug available at shop.mnhs.orgBecome a Member

3. Purchase "History Matters" Products

4. Learn about the Issues The Minnesota Historical Society tracks issues that impact history around Minnesota.

5. Subscribe to the History Matters e-newsletter so that you are aware of the latest news at the Legislature regarding the Minnesota Historical Society.

6. Visit the Minnesota Historical Society's 25 Historic Sites and Museums. Take some time to visit your place in history.

7. Educate your friends and family about why history matters to you. Encourage them to get involved in the Society.

8. Make a Donation

9. Volunteer at the Minnesota Historical Society. Volunteering is a great way to meet people who share your love of history and to have fun!

*Making an Appointment with your Legislator
1. The first step is to identify your state legislators. All you need is your address. Search for your legislator. A quick click on your legislators' names will provide you the appropriate contact information.

2. Now that you have your legislators' phone numbers, simply call and speak to one of their friendly staff members to schedule a visit. Appointments are typically set in 15-minute time slots.

3. Not sure what to say when you arrive at your meeting? Read Tips for Meeting with Legislators.