Minnesota Budget Passed and Signed After Abortion ‘Gag’ Rule Dropped, Medicaid Eligibility Expanded As Compromise

In a legislative "cliffhanger," the Minnesota House and Senate approved a $27.3 billion state budget on June 20, "hours" before the state's spending authority would have ended, resulting in a "shutdown," the AP/New York Times reports (AP/New York Times, 6/30). The "deadlock" over the spending bill, which appropriates funding for health and human services, was the result of abortion language contained in the measure. In the compromise agreement, a "gag rule" that would have prevented the state from awarding family planing grants to agencies that provide abortions or referrals for the procedure was dropped. However, lawmakers also dropped a proposed teen pregnancy prevention program, an initiative backed by Gov. Jesse Ventura (I). The program would have appropriated $20 million over two years for after-school programs and youth development projects to encourage teenagers to abstain from sexual activity. The Minneapolis Star-Tribune reports that abortion opponents had wanted the "gag rule" to govern appropriations for the prevention program as well. Because negotiators could not find a "common ground" on the abortion language, both provisions were dropped to advance the rest of the spending bill (Hopfensperger, Minneapolis Star-Tribune, 6/29). Ventura had "threatened" to veto any bill that contained the funding restrictions (New York Times, 29). "It was a classic tough compromise. Each party gave up something they really wanted," Human Services Commissioner Michael O'Keefe said (Minneapolis Star-Tribune, 6/29). As part of the deal, the House agreed to "greatly expand" the state's Medicaid program, called the Medical Assistance Program, for children in families earning up to 175% of the federal poverty level, or about $31,000 annually for a family of four. Also, if a future income increase disqualifies a family for Medicaid coverage, they would be "automatically" enrolled in MinnesotaCare, the state's subsidized health insurance program, until they exceed that program's income eligibility level. About 20,000 additional children will be eligible for coverage because of this provision (Minneapolis Star-Tribune, 6/30). Ventura signed the bill late Saturday night, with "just three hours left in the fiscal year" (Baden/Smith, Minneapolis Star-Tribune, 7/1).