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Pawlenty agrees to fix city aid glitch, defender budget
by Laura McCallum, Minnesota Public Radio
July 22, 2004

"I just personally, I reached a conclusion that a special session is unlikely," Pawlenty said, explaining his motive. "In the meantime, these problems have to be solved." (MPR Photo/Laura McCallum)

Gov. Pawlenty says he'll fix two budget problems on his own, giving up his insistence that they could only be addressed in a special legislative session. One problem affects state aid to cities, the other a public defender budget shortfall. The governor says he decided to reverse course because it's unlikely there will be a special session. Until Thursday, Pawlenty had maintained that he was legally prohibited from correcting the problems.

St. Paul, Minn. — Pawlenty's decision clears up fiscal uncertainty for both cities and public defenders. In the case of cities, a technical glitch in the law left most Minnesota cities guessing how much state aid they'll get next year. Last year, Pawlenty ignored the problem and distributed local government aid based on legislative intent. He initially said he wouldn't do that this year, prompting an outcry from many mayors.

Minneapolis and St. Paul were slated to lose about $15 million. Now Gov. Pawlenty says he'll overlook the glitch if groups representing cities urge their members not to sue the state.

	Who blinked?

"It's not a perfect solution, it does involve some legal risk, but it's a risk I'm willing to take in an effort to protect the taxpayers against the threats by local officials to raise property taxes as a result of this local aid confusion," Pawlenty said.

Groups representing cities welcomed the governor's decision. Tim Flaherty of the Coalition of Greater Minnesota Cities says many city officials were extremely frustrated over the confusion surrounding the state aid.

"This was a bigger issue to them than anything I've seen in 20 years of representing them. And it was just like they said, they've just had enough. 'Can't these guys do anything right?' And so I think they're going to be very happy with the governor's decision here," Flaherty said.

Flaherty says the coalition will urge its members not to sue the state over the matter, and the League of Minnesota Cities says it will do the same.

In the case of public defenders, Pawlenty promised to fill a $7.6 million budget gap to avoid public defender layoffs. The shortfall is a result of a state Supreme Court decision prohibiting the state Board of Public Defense from collecting co-payments from indigent defendents. The board had planned to send pink slips to more than 25 percent of its staff by the end of the week. Pawlenty says that could create a crisis in Minnesota's criminal justice system.

	No to a special session

"If public defenders aren't able to represent individuals with quality but also with speed, it raises a constitutional defense that could be a problem. You could have people representing speedy trials and not have enough public defenders to meet such a demand," he said.

The governor is asking the board not to lay off any public defenders. He says the gap can be closed early next session.

House and Senate leaders had agreed on the need to deal with both the local government aid glitch and public defender funding, and they applauded the governor's decision. But DFL Senate Majority Leader Dean Johnson of Willmar, who was not invited to the governor's announcement, says Pawlenty should still call a special session to deal with other issues.

"We know that he will change his mind now on certain things, so governor, change your mind on the bonding bill. And change your mind on sexual predators. And change your mind on fixing up this tax bill so that all Minnesotans will pay their fair share of taxes," Johnson said.

	Not giving up on special session

Pawlenty didn't completely rule out a special session, but said he will only call one if House and Senate leaders agree on the agenda, which seems unlikely. Republican Senate Minority Leader Dick Day of Owatonna says there's no need for a special session. Day says a bonding bill and other issues can wait until 2005.

"I believe that 75 to 85 percent of the people in Minnesota feel the same way I do. And I know they're not the stakeholders. They might not be the professor at the college, or might not be the person who wants his roof fixed," Day said.

Day's members aren't on the ballot this year. But House Speaker Steve Sviggum, whose members are up for re-election in November, says he'll continue to reach out to Sen. Johnson in hopes of reaching agreement on a special session agenda. But with two key items already determined by the governor, some of the pressure for a special session may have dissipated.

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