The 2003 session of the Minnesota Legislature convened this past week. Of the 133 members of the House of Representatives who took the oath of office, almost a third of them &045; some 43 members &045; are new to the Legislature. Minnesotans elected some very talented people; I’ve been impressed with the freshmen I’ve met. It won’t be long before some of these members become household names in Minnesota politics.

The big task ahead for the Legislature is, of course, the state’s projected $4.5 billion budget deficit (and the $350 million hole in the current budget). Chairs of the finance committees have been meeting to find areas where they can wring out immediate savings in anticipation of budget-balancing legislation from the governor’s desk.

Remarkably, even with two years of tax cuts, revenue to the state is up 6 percent. The problem is, built-in spending is projected to grow by 14 percent. Something has to give and I think Minnesotans understand the problem. According to the recent Minnesota Poll, some 76 percent of respondents said balance the budget with spending cuts; just 37 percent said raise taxes. We’ll have a clearer picture of the problem and the solutions when the February budget forecast

is released.

DURING THE FIRST WEEK, lawmakers also reintroduced important and popular pieces of legislation that focus on transportation issues, repeal of the Profile of Learning, putting visa expiration dates on the drivers’ licenses of foreign visitors, prescription drug coverage, and a bill which I signed onto, the creation of tax-free zones to stimulate economic development in rural Minnesota.

The tax-free zone legislation is similar to a bill offered by Governor Pawlenty last session while he was still serving as House majority leader, and which he touted here in Albert Lea when he was campaigning. Modeled after programs adopted in Michigan and Pennsylvania, the legislation would allow up to 10 tax-free zones with a maximum size of 5,000 acres (approximately 7.8 square miles) each to be established in greater Minnesota. Businesses operating in the zones could be exempt from paying property taxes and state income and sales taxes, while residents of the zones may not have to pay property taxes or state income taxes depending how the plan is designed. The designations would occur in 2003 and take affect Jan. 1, 2004.

A tax-free zone would fit Albert Lea like a glove. (Had it existed, I’m persuaded it would have been enough to tip the scales in Albert Lea’s favor when Ford was eyeing the city for a plant expansion.) Tax free zones would allow our smaller communities to compete with bigger cities and neighboring states and bring more manufacturing businesses and value added agriculture programs to the area. Too often, our young don’t have the opportunity to work in their hometowns because the jobs aren’t there.

There are many economic development tools available to a city, such as tax increment financing. But many of the tools are piecemeal and provide uncertain outcomes. A tax-free zone is the ultimate economic development power tool.

Got a question or concern? Write me at 579 State Office Building, 100 Constitution Ave., St. Paul, MN 55155, or call me, toll-free, at 1-877-377-9441. My e-mail address is rep.dan.dorman@ house.mn.

Rep. Dan Dorman, R-Albert Lea, represents Freeborn County and part of Mower County in the Minnesota House of Representatives.