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Special session all but certain, leaders say
by Laura McCallum, Minnesota Public Radio
May 14, 2003

Gov. Tim Pawlenty's chief of staff, Charlie Weaver, says the governor has offered to increase spending over his initial budget proposal... (MPR Photo/Tom Scheck)

Budget talks continue at the Capitol, with five days to go until the end of the legislative session. Legislative leaders say they've made some progress, but a deep divide remains over taxes. Gov. Tim Pawlenty and House Republican leaders say they won't raise state taxes to balance the budget. Senate DFL leaders say it's hard to find middle ground if Republicans won't compromise.

St. Paul, Minn. — A series of budget negotiations over the past few days have failed to result in a budget deal. Senate Democrats want to erase the state's projected $4.2 billion deficit with a combination of spending cuts and higher taxes on businesses, upper-income earners and cigarettes.

House Republicans are aligned with the governor on his no-tax-increase stance, relying on cuts, one-time money and accounting shifts to balance the budget.

	House Speaker Steve Sviggum

"We're not going to increase the tax burden; plain and simple," says House Speaker Steve Sviggum of Kenyon, who adds that House Republicans won't back away from that position now or one month from now. He says the state can fund core government services without a tax increase.

DFL Senate Majority Leader John Hottinger of St. Peter says Senate Democrats believe higher taxes are needed to maintain Minnesota's quality of life. He says it's a deep philosophical divide. "The governor's adamancy about no tax increase compared to our belief that we need to have that level of revenue in order to build a better Minnesota is a gulf. And I tend to think it needs to go one way or the other," Hottinger says.

Hottinger says Senate Democrats are willing to compromise, but they don't see much movement on the other side.

Pawlenty's chief of staff, Charlie Weaver, says the governor has offered to increase spending over his initial budget proposal.

"Actually, we've come further than the Senate. We offered nearly $200 million over the governor in spending, most of it for human services. So we thought that was a pretty significant step towards a compromise. And we're talking about issues that are important to both sides," Weaver says.

Most of the public wants a balanced approach, the former Republican governors want a balanced approach and the Taxpayer League, apparently, they paid for the instruments and they call the tune. - Rep. Matt Entenza, DFL-St. Paul

Weaver says if Republicans can't meet the Senate halfway on spending, they might be willing to compromise on other issues that are important to Democrats. They've been talking about labor provisions including Gov. Pawlenty's proposed pay freeze for state employees. Senator Hottinger says Democrats want movement on the larger question of the budget.

"And compromising by $100 million or $150 million is a relatively minor offer compared to the dramatic cuts that are being proposed. At that stage, it's just softening the politics, it's not taking care of any problems," says Hottinger.

He also isn't enthusiastic about another revenue source that Republican legislative leaders are pushing. Speaker Sviggum and Senate Minority Leader Dick Day say adding slot machines at the Canterbury Park racetrack in Shakopee will generate an estimated $100 million over two years for the state. They say money from the privately-owned racino will help blunt the impact of budget cuts.

"We're hoping the DFL Senate comes to their senses and realizes they're standing in front of all of Minnesota and a huge pot of money that we can use for senior citizens. We can use it for just a whole host of things," Day says.

Day says many DFL lawmakers won't support the racino because it's opposed by the state's Indian tribes, who have traditionally contributed more to DFL candidates than to their Republican rivals.

Sen. Hottinger says he doesn't like the idea because the state would be authorizing a private business to make money from an addictive behavior. DFL leaders say if Republicans are going to charge that special interests are controlling the budget debate, they should look in the mirror.

House Minority Leader Matt Entenza of St. Paul says the conservative Taxpayers League has tied Republicans' hands with the no-tax-increase pledge the group sponsored.

"It appears that unless these very wealthy donors that control the Taxpayer League are willing to let the governor negotiate, the Republicans can't negotiate; they're stuck. And it's a shame. Most of the public wants a balanced approach, the former Republican governors want a balanced approach and the Taxpayer League, apparently, they paid for the instruments and they call the tune," Enteneza says.

Entenza says he's not optimistic the House and Senate can bridge a $1 billion dollar difference in budget bills by Monday's deadline to adjourn. Speaker Sviggum says at this point, even if there were an agreement, there might not be enough time to process the bills by Monday.

Gov. Pawlenty says without a deal, he'll call a special session immediately after the regular session adjourns.

SPECIAL SESSIONS SINCE 1990

Since 1990, the state Legislature has been called into special session at least seven times for a variety of reasons, including:

-2002: A session lasting one day was called to provide state flood relief for Roseau.

-2001: A budget dispute took the state to a brink of a government shutdown over a plan to reform the property tax system. A 19-day session ended June 29.

-1998: A two-day session was called to clarify legislative intent on a handful of issues.

-1997: Met and adjourned June 26 to discuss K-12 education funding.

-1995: A two-day session on K-12 education.

-1994: Lawmakers met for a day on the state's sexual predator law.

-1993: Votes on budget bills took one day, May 27.

SOURCE: Minnesota Legislative Reference Library

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