Leaders debate state’s funding problems
Published 9:30 am Wednesday, September 9, 2009
Democrats and Republicans agree: Minnesota’s economy and finances need improving.
GOP Gov. Tim Pawlenty and the Democrats who control the Legislature just aren’t talking to each other about how to fix those problems.
They held separate discussions in different cities Tuesday, with Democratic-Farmer-Labor Party legislative leaders organizing a leadership summit featuring two former Republican governors at the Capitol and Pawlenty headlining a GOP economic forum in the Twin Cities suburb of Eden Prairie.
The two sides also failed to come together on the state’s finances during the legislative session that ended in May. Pawlenty vetoed a DFL-backed plan that would have raised taxes, instead opting to use an executive power called unallotment to slash $2.7 billion from state spending over two years.
State Economist Tom Stinson told those at the DFL meeting Tuesday that the state continues to face immediate and long-term budget pressures, with the economy projected to grow slowly after a long recovery from the economic slump. State revenues have been running below projections, he said, and the outlook could worsen in the current budget year.
“The problem is more than an accounting problem,” he said.
Much of the talk focused on broad ideas to deal with the problems, such as raising the retirement age, getting people to take more responsibility for their health and building political consensus.
Former Gov. Al Quie, a Republican, got more specific. He encouraged the Democrats to make a deal with Pawlenty to stabilize the budget: Agree to the corporate income tax cut the governor wants in exchange for an expansion of the state sales tax.
“I cannot see how we can solve this in the long run unless we do something about revenue right now,” said Quie, who governed the state from 1979 to 1983.
The meeting had the feel of a diplomatic summit, with small U.S. and state flags displayed on a long table, while three former governors, a former U.S. House member and a phalanx of former state House speakers and Senate majority leaders held talks over pastries and box lunches.
In Eden Prairie, Pawlenty led a discussion focused on ideas meant to help businesses, such as allowing a lower minimum wage for workers who make tips.
“Today over at the Capitol you’ve got people gathering again in the guise of trying to sustain the social welfare state, saying we’ve got to spend more, raise taxes to sustain what we’ve got — not a lot of consideration around trying to slow down the amount of government spending,” Pawlenty told the crowd at Eaton Corp. which makes parts, hydraulics and electrical equipment.
The group was receptive, with the governor, three of his cabinet members and about a dozen state lawmakers on hand to hear ideas.
Afterward, Pawlenty said the event was planned months ago and was not intended to compete with the summit — but the parallel scheduling was a “nice coincidence.”
The governor’s absence from the DFL summit didn’t go unnoticed.
“The fact the governor is not here today is a sign of a very serious problem,” said former House Speaker David Jennings, a Republican. “If we can’t figure out how to fix that, then we’re kidding ourselves about communicating with the public and building confidence with the public.”