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I I I I I I I I I I I I I I I I I I I Senator Dahl stated that the bank will be required to ply back the State, if the bank goes out of business, the State's delX)sits in that bank would be protected ~ the Federal DelX)sit Insurance CbrlX)ration. Senator Dahl 8tated that he would not author a progran unless it did provide real assistance to the farmers without putting the State at risk. Cbuncilmember Reimann lrquired if State representatives give any thought to making budget cuts across the board. Senator Dahl replied that for the plst three years he has served on the COJrIIlittee that hanmers out the final budget. 'lhe budget ~ocess is that the various State agencies make budget requests, the Governor reviews those requests and makes reoonmendations, the budget axmnittee reviews the Governor's reocmnendations and makes further adjuSbnents. In the past 3 years, the budget OCJm\ittee has cut $100,000,000 out of the Governor's reoorrmendation, a reoanmendation whidl was substantially below the request of State agencies to begin with. Senator Dahl. stated that he is very conservative and approaches this task as if he were spending his own money; he 1s absolutely against a tax increase to offset the deficl t. Cbunci1member Reimann stated that he feels cuts could be made to education aids while still retaining the same quality of education. Cbunci1member Reimann stated that spending at the Universi ty of Minnesota really needs to be investigated; people dloosing to ~ on to college and vocational schools should p:ly the cost of doing so. Senator Dahl stated that with respect to grades K through 12, Minnesota has a system whereby local school boards make their own funding decisions. 'lhe State does feel that it is Wlfair to have the quality of education depend on the property tax base of a puticular area; every child should have the op{x)rtuni ty to readl his or her fullest p>tential and for that reason most of the funding for education CDDeS fran the State governnent. Senator Dahl stated that his resp>nsibili ty is to provide adequate funds for education and let the people at the local levels make a decision as to how they spend that IDOney. With respect to earlier ocmnents regarding the University of Minnesota, Senator Dahl stated that he is convinoed that one of the reasons the eoonauy in the metro area is so strong even though the rest of the State's e001'Xll!Y is bad is because of the Universi ty. Senator Dahl stated that the 0 of M is one of the finest insti tutions in the State but he does agree that there is some waste there and when he brings it to the aaninistration's attention, they are usually very responsive. Senator Dahl stated that Minnesota's long tem eoonanic health is directly tied to the quality of education. Cbunci1member Reimann stated that we owe our dlildren an education through grade 12 but he doesn't believe in subsidizing everybody that goes to college. Senator Dahl stated that he feels subsidizing education is a good invesbDent because it affords the ability to persons to learn a skill and avoid relying on welfare to survive. Cbunci1member Reimann stated that sane of the costs of subsidizing education are being duplicated at CXIIIIDunity college spiJ'H)ffs fran the universities. January 28, 1986 Page 6 of 18