House Republicans have unveiled their plan for addressing the state's nearly $2 billion projected budget deficit. Like the Senate DFL plan, the proposal does not raise taxes, but it cuts government spending more than twice as much as the Senate plan, and could result in state government layoffs.

	The House plan also includes a state government hiring freeze that Speaker Steve Sviggum believes would save $100 million in the next 18 months. The Kenyon Republican says if close to 2,700 positions have not been reduced by the end of the year, the House plan would lay off state workers. Looking on is Majority Leader Tim Pawlenty. (MPR Photo/Laura McCallum)

House Republicans want to cut government spending by about $650 million, use up the state's budget reserves and various funds, and dip into the state's tobacco endowments.

Majority Leader Tim Pawlenty of Eagan says it falls somewhere in between plans offered by the Senate and Gov. Ventura.

"This is a plan that is a bridge between a governor who wants to raise taxes and has the wrong cutting priorities and a DFL Senate that's in fiscal denial," Pawlenty said.

Gov. Ventura's plan is a mix of spending cuts, use of the budget reserves and tax increases on gasoline, cigarettes and some services. The plan moving through the Senate eats up the state's budget reserves and cash flow account, and makes permanent spending cuts of about $200 million a year.

Both the House and Senate want to cut a $129 million grant fund for local governments, although the Senate doesn't include the fund in its list of spending cuts and the House does. The House plan also includes a state government hiring freeze that Speaker Steve Sviggum believes would save $100 million in the next 18 months.

The Kenyon Republican says if close to 2,700 positions have not been reduced by the end of the year, the House plan would lay off state workers.

"It's tough, folks, no doubt about it, it's a tough message from that standpoint. But again, let me give you back to your choices. Do you want to cut state government size, which has increased dramatically over the past 10, 15, years or do you want to cut schools? We're not going to cut schools," said Sviggum.

"I guess their attitude is why do today what you can put off 'til tomorrow?" - Gov. Ventura

Both the House and Senate cut K-12 education spending by $15 million this biennium, but legislative leaders say the cuts won't affect the classroom. House Minority Leader Tom Pugh, DFL-South St. Paul, says that decision is short-sighted, and seems certain to hurt schools.

"I wouldn't use either plan - either the Senate or the House plan - with respect to education," he said.

Pugh says some Democrats will also oppose raiding the state's tobacco endowments. The House plan uses about $500 million set aside for smoking prevention, while the Senate plan simply uses the endowments as a cash flow account if necessary.

Senate Democrats question whether House Republicans are going too far with their budget cuts. The author of the Senate plan, Sen. Doug Johnson, DFL-Tower, says he thinks Minnesotans will object.

"I'm hearing from Minnesotans on even the $200 million that we cut in the Senate bill, and, you know, those were commitments that were made to Minnesotans before, you know we did significantly cut taxes over the last four years in addition, and so I think the level of cuts in the Senate plan are where we should be," he said.

The Senate plan should reach the floor on Monday. The House plan will be spread over 11 bills, and won't be ready for floor action for a couple of weeks. Both bodies say they're trying to meet the governor's demand that they move quickly to resolve the shortfall.

Ventura has also asked them to balance the budget for the next two-year budget cycle as well, although they're not constitutionally required to do so. He said on a Duluth radio station that if lawmakers wait until next year to tackle the so-called "out years", they're taking the easy way out. Ventura says the public won't let them get away with it.

"They're going to think that the people aren't savvy enough or aren't paying attention, enough or don't care, just do the quick fix, and we'll ... you know, it's the old standard, I guess their attitude is why do today what you can put off 'til tomorrow," Ventura said.

House and Senate leaders say they will start working on the deficit for the next biennium after the next budget forecast is released at the end of the month.