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March 24, 2005
State lawmakers are back in their districts this morning to begin their five-day break for the Easter holiday. They left the Capitol with a lot of work still ahead of them. The DFL-controlled Senate yesterday approved legislation that would erase a projected deficit. But House Republicans and Governor Pawlenty have attacked the Senate plan as a political gimmick. The disagreement highlights how much work remains before lawmakers are constitutionally required to adjourn in two months.
St. Paul, Minn. — Senate DFLers say their budget bills are the first step in a multi-phase budget process. They passed two bills that take care of the projected $466 million deficit. One of the bills would cut $207 million in state spending. The other would use Governor Pawlenty's proposal to extend taxes on car rentals and alcohol that were set to expire.
Sen. Larry Pogemiller, DFL-Minneapolis, says the two bills address the state's fiscal problems. He says Senate DFL leaders plan to increase funding for education and transportation when they return from the Easter recess.
"We all have to solve the structural deficit at some point during the session," Pogemiller said. "It just seems like it's a wise thing to balance your checkbook first and then to start your new spending."
If the Senate legislation becomes law, state spending would remain at current levels. That means parks, nursing homes and state prisons would keep running if lawmakers can't reach agreement on added spending. It would also keep 27,000 people on MinnesotaCare. Governor Pawlenty has proposed cutting those people from the state subsidized health insurance program in his budget.
The Senate votes fell largely along partisan lines. One DFLer voted against the spending bill because it didn't increase education funding.
The DFL plan is unusual since lawmakers typically address both spending increases and deficit reduction all at once, rather than dealing with them separately. Sen. Bill Belanger, R-Bloomington, says he'd prefer to see lawmakers follow the traditional budget process instead of the Senate plan.
"We're being fed a slice at a time," Belanger said. "We don't get to see the whole loaf until we get the last slice and then for those of us in the minority, it's too late," he said. "I'm concerned that to get K-12 funding, we're going to have to vote for a tax increase or casinos."
The budget disagreements do not bode well for the spirit of cooperation that lawmakers strived for earlier this session. Both Republicans and DFLers have tried to avoid the partisan battles that led to near gridlock last year.
There's also more work to do. After hours of debate this week, negotiators for the House and Senate failed to agree on a package of public works projects. Some negotiators worried that the disagreement would drag on until the end of the session if the two sides couldn't agree before the Easter break.
The Republican-controlled House has yet to vote on a budget. House Republicans have proposed capping state spending at $29.8 billion in the next two years. That's similar to what Governor Pawlenty has proposed. House Speaker Steve Sviggum, R-Kenyon, says the Senate package will make budget negotiations more difficult as lawmakers get closer to the end of the session.
"It's a very real concern that you address it just from a piecemeal fashion," Sviggum said. "And you provide the opportunity for government to basically continue and let them walk from real deals, real negotiations and real compromises."
Governor Pawlenty still remains optimistic that lawmakers will work more closely than they did last session. But he cautions that it's unrealistic to think everyone will continue to agree as the session comes to an end.
"I think people can do better than in the past and not make it personal and keep it on the issues," Pawlenty said. "I think it has been better this year and I predict overall it will continue to be better but there will be some bumping and grinding. That's just the way it is."
That bumping and grinding could increase after the recess if Senate DFLers propose a tax increase to pay for increased spending. Pawlenty and House Republicans both oppose any new taxes. But Senate Majority Leader Dean Johnson, DFL-Willmar, suggests that Senate DFLers may propose a tax increase if the public wants it.
"The begging question as we move to the second half of the legislative session is, 'are the people of Minnesota willing to have their taxes raised for public education?' If they knew that any tax increases were dedicated to classrooms and students and teachers," Johnson said, "would they be willing to support legislators who support tax increases?"
Other areas of potential conflict lie ahead as well. The House and Senate also need to resolve differences over tougher penalties for sex offenders and legislation to combat the use and manufacture of methamphetamine.
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