Gov. Tim Pawlenty spent the first seven years of his tenure skirmishing with Democrats over his drive for tax cuts and smaller government. With just 11 months before a possible move onto an even bigger political stage, Pawlenty made clear Thursday he’ll pursue more of the same, calling his vision “the true source of economic recovery.”

In his final State of the State speech, the Republican governor urged legislators to pass a mix of tax cuts and tax credits to spur job creation. Pawlenty, who isn’t seeking a third term as he likely explores a presidential bid, said Minnesota is “challenged, but our spirit is resilient.”

Pawlenty noted many state residents fear for their jobs, and said he knows how they feel — telling a story of being “scared and confused” as a teenager when his father lost his job with a trucking company.

“Many Minnesota moms and dads, and their children, are experiencing those types of feelings now,” he said.

State economic officials estimate Minnesota has lost some 130,000 jobs during the recession, and Pawlenty said he aims to win some of those back by providing tax breaks.

The governor announced a package of six tax incentives, including a 20 percent corporate tax break and incentives to help startup companies and small businesses. He also proposed a tax incentive for the Ford Motor Co. plant in St. Paul aimed at preserving 750 jobs, and a permanent cap on property taxes.

Top Democrats have emphasized jobs as a major theme this session, but they disagreed with Pawlenty’s focus on tax cuts, especially for large corporations.

Senate Majority Leader Larry Pogemiller said loopholes have already kept some corporations from paying their fair share, and called Pawlenty’s proposal to permanently cap property taxes little more than a “rhetorical flourish.”

Democrats have long blamed Pawlenty for rising property taxes during his tenure, saying that holding the line on taxes at the state level merely forced smaller units of government to raise them.

Pogemiller said Pawlenty needs to work harder to build legislative support for his ideas.

“He can leave a legacy for this state of fiscal responsibility that we can all be proud of, but he has to come in and work for it and fight for it and try to make it happen,” said Pogemiller, a Minneapolis Democrat.

Sen. Geoff Michel, R-Edina, said Pawlenty’s incentives would help the economy. “We are here to try to create the conditions to create jobs,” he said.

Pawlenty promised to preserve funding for the military, veterans, public safety and K-12 education, but said all other areas can expect cuts as the state confronts a budget deficit of $1.2 billion, with worse ahead. He is due to release his supplemental budget Monday, spelling out his plan to erase the state’s shortfall through the middle of next year.

“Times have changed and there’s no going back,” he said, renewing his call for a constitutional amendment to require that future government spending not exceed state revenues.

Democratic House Speaker Margaret Anderson Kelliher said she is worried that cuts will fall indiscriminately.

“It sounds like the ax is back as a budget cutting tool,” said Kelliher, a Minneapolis Democrat and one of 13 Democrats running for governor.

Pawlenty acknowledged the fallout from his unilateral spending cuts last year to balance the state’s budget through a process called unallotment. A court case is pending over whether he overstepped his authority. Pawlenty urged legislators to leave his cuts alone.

“That’s a tough sell,” Kelliher responded after the speech.

Pawlenty’s proposal to extend JOBZ, his Job Opportunity Building Zones program, also has scant chance in the Legislature. But Kelliher said interest is high in supporting the effort to keep the Ford plant.

As in past years, Pawlenty said changes are needed in the state’s schools and the way teachers are paid. One new idea: Giving the mayors of Minneapolis and St. Paul “accountability and full control” of their school districts. Pawlenty would need approval from the Legislature.

Pawlenty said he has directed the state’s Department of Education to create an office that he said would have the power to appoint school leaders and enforce new hiring practices in struggling schools.

GOP House Minority Leader Kurt Zellers said there is broad consensus for a tax incentive for investors who put money in startup companies. Democrats are also pushing that proposal.

More than two dozen hopefuls are vying to succeed Pawlenty. Whoever takes the state’s top spot will likely inherit an even deeper deficit. A shortfall of $5 billion to $8 billion is predicted for 2012 and 2013.