2009 Legislative Review: The Continued Search for Balance

Politics, like life, consists of an on-going quest to find balance. Sometimes you have it, sometimes you don’t. Recently, Albert Lea began its newest quest to find long-term balance through the “Blue Zone” vitality project. This exciting project consists of community members committing to making a series of small positive changes that will have a huge impact on their lives.

In this spirit, I am encouraged to see Republicans making a series of positive changes which will clearly have a positive impact on the success of our community and our state. Locally, we are fortunate to have local businessman and community philanthropist, Al Arends leading us on a quest to find common-sense. It is refreshing to see so many new faces from all age groups engaged in the exchange of ideas.

At the state level, Republicans have made a series of small changes, beginning with their approach to education funding. Led by Governor Pawlenty, Republicans have staked out an aggressive and positive position supporting increased funding to our K-12 classrooms. While the Governor pushed hard this year for higher classroom funding levels, in the end he signed the majority’s education bill. Also, I had the privilege this year of participating in a positive, bi-partisan discussion on clean water and habitat enhancement through the use of the new dedicated sales tax revenue. Continued Republican leadership in this area can have only positive results.

In contrast, the same can be said for the DFL making a series of small negative decisions that had a huge impact on this year’s session. When the Governor initially announced his legislative package, the DFL quickly went on a “gotchya” offensive around the state. The DFL missed an opportunity to find solutions to Minnesota’s challenges and instead just identified a series of problems. Their attempt to simply build political support for their patch-work agenda probably prevented the DFL from finding their balance.

Next, the DFL went after a number of Pawlenty projects in an apparent attempt to create negotiating chips for the final end-game. Of local interest, the Governor’s Q-comp program and the JOBZ program were in the cross-hairs.

Finally, the House and Senate passed what I termed “misplaced” tax bills. On their first attempt, the House passed a tax bill that would have ended popular deductions like mortgage interest, property taxes, charitable contributions, education expenses and child-care. This political disaster did not make it out of conference committee until less than one hour prior to the end of session. Earlier, the House and the Senate leadership patched together an alternative $1 billion tax bill that was quickly vetoed by the Governor. In the end, the DFL did not even get all of their own to support this alternative tax bill. Locally, Representative Poppe (DFL Austin) voted no on the attempt to override the Governor’s veto.

Probably the biggest remaining challenge is to find a way to provide quality and affordable health care in a manner that does not bankrupt state coffers. As in Albert Lea’s Blue Zone project, a series of small steps can have a huge impact. Hopefully, the DFL and the Governor can begin to work together to make the reforms necessary to accomplish this outcome and in the end find balance.

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Finding Balance

It's time to balance the books.

Yesterday, the house and the senate sent a series of spending bills to the Governor. Unfortunately, their spending package is $3 billion in excess of their revenue. "A $3 billion hole" as described by the Pioneer Press. http://www.twincities.com/ci_12364582

Shortly after receiving the bills, the Governor expressed his frustration in a letter to legislative leaders. Click here to read his letter. http://minnesota.publicradio.org/features/2009/05/DFL_spending_bills_letter.pdf

As explained by the Governor, the one tax bill the DFL was able to muster sent $1 billion in additional revenue. Although this bill was vetoed by the Governor, even it was still $2 billion short of their spending spree. The ball remains in the DFL court to find responsible revenue enhancements that support their spending -- or find areas to cut.

The Governor has proposed additional revenue enhancements totally $1billion -- many of which were supported by either the house or the Senate. His proposal was flatly rejected by the DFL majority. As twittered by Speaker Kelliher, "It is not a responsible plan."

What would be irresponsible would be for the Governor to sign spending bills that are not paid for. Again, reasonable education and human services bills and a responsible tax bill have not been presented by the DFL majority. Until they are, balance will remain elusive.
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Taxes split traditional alliances

Neighbors in their districts and on the house floor, Representatives Jeanne Poppe and Robin Brown often agree on and vote the same on issues. This session, however, has proven more difficult. Robin Brown offered an amendment on the house floor to save the state-promised JOBZ benefits to businesses in her district. Poppe, however, voted against Brown's amendment and the amendment failed by a vote of 68 to 65.

Shortly thereafter, the house voted on the omnibus tax bill and Brown pulled the yes lever and Poppe the no. According to Poppe, the $1.5 billion tax proposal did not propose a solution and was too big. http://www.postbulletin.com/newsmanager/templates/localnews_story.asp?z=16&a=398703

In contrast, Brown indicated that she voted for the tax bill because of the local benefits and because it created a better, "balance of taxes for all people." http://www.albertleatribune.com/news/2009/may/06/albert-leans-gather-show-support-jobz-program/

It is apparent that this year's legislative session will continue to challenge traditional alliances. As detailed in a previous post, this year's real battle will come to spending in the state's two largest areas: welfare reform and education. http://tiltingagainst.blogspot.com/2009_02_01_archive.html Behind the headlines, these two areas will continue to dominate the politics of this year's session.

Also, watch closely the working relationship between Speaker of the House Margaret Kelliher and Senate Majority Leader Larry Pogemiller. They have substantially different governing styles and time will tell if they will be able to keep the DFL train on the track.
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Tax Bill "Do-Over"

On Wednesday, a group of local residents held a rally at the Courthouse lawn in Albert Lea. The purpose of the rally was to request that Governor Pawlenty veto the then-current tax package that had been passed by the House and Senate.
http://www.albertleatribune.com/news/2009/may/07/rally-dont-cut-jobz/

Of major concern, was the ripping back of JOBZ tax benefits that had been promised to local employers. For example, Albert Lea Select Foods held up their end of the JOBZ bargain having now created over 400 jobs, having initially promised 50. The tax package would have ended most of the State-promised benefits mid-stream. Not only would this policy threaten existing jobs, but would also send a terrible message to other businesses looking to locate in the State. http://www.kimt.com/content/localnews/story/Businesses-Ask-for-State-Do-Over/MX8rDKaReUOkPngY73skAw.cspx

The tax package also contained a new 4th tier tax bracket and elminated commonly used tax deductions like mortgage interest, property taxes, charitable contributions, education and child care expenses.

Late last night, the House and Senate did re-do their tax bill. It was initially passed with actual blanks in the bill. http://www.startribune.com/politics/state/44534987.html?elr=KArks:DCiU1OiP:DiiUiD3aPc:_Yyc:aUU. It was later sent to Conference Committee and is now awaiting further action on the floor of the house and senate. Attached is the house research summary. http://www.house.leg.state.mn.us/hrd/bs/86/HF0885.html

Stay tuned.

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