Leaders reaffirm budget positions

published 12/9/2008

Less than a week after the state’s grim budget forecast was announced, state leaders reiterated their positions of wanting to work together to reach painful decisions.

Speaking at an Associated Press forum, Gov. Tim Pawlenty and legislative leaders said there will be no easy solution to the state’s $426 million deficit for the current biennium and $4.85 billion deficit projected for the next two fiscal years. (Watch the forum.)

All sides expressed optimism of quickly devising a plan to eliminate the short-term deficit, which is actually $271 million once the state’s budget reserve is raided, as constitutionally required.

Pawlenty and House Speaker Margaret Anderson Kelliher (DFL-Mpls) expressed hope that the sides can work together to create a potential unallotment package that all parties can find satisfactory.

Looking ahead to the 2010-2011 biennial budget, Pawlenty said his proposal would contain no tax increases. “This is not the time to add additional burdens on Minnesotans,” he said, although he might support some tax reform. Pawlenty said that $8 billion in tax increases over the next four years is already on the books.

Kelliher said legislators plan to tour the state to receive feedback on the governor’s budget proposal, which is expected to be announced the final week of January.

She and Senate Majority Leader Larry Pogemiller (DFL-Mpls) said everything is on the table to solve the budget crisis, including potential tax increases. “It seems short-sighted to remove any tools from the toolbox,” Kelliher said.

Senate Minority Leader David Senjem (R-Rochester) said his caucus doesn’t have “a tax appetite,” saying it would be “counterproductive” to turning things around.

Pawlenty, who said a hiring limitation and salary freeze is to be enacted for state workers, said there could be a silver-lining to the shortfall: a chance to reform government.

House Minority Leader Marty Seifert (R-Marshall) said in-depth looks will be given to all state agencies and departments, and that cuts may be needed.

Pogemiller hopes that any member who has an idea for a budget reduction gets a bill introduced and is given a hearing.

- Mike Cook