Closing in on a state shutdown

06/29/2005

Patricia Lopez,
Star Tribune
June 30, 2005

In a day that saw more accusations of obstinancy and more closed-door meetings, a few hopeful signs emerged that Friday’s partial government shutdown could still be averted—or at least minimized.

A tentative agreement on a jobs, environment and agriculture bill that would keep state parks open could head to the Senate and House floors Thursday for a vote. Gov. Tim Pawlenty has indicated he would sign it.

And in the day’s most unexpected development, a bipartisan group of more than 20 House and Senate members presented a global budget deal that they say could wind up on the governor’s desk.

An old-fashioned split-the-difference proposal, the “framework,” as they call it, eliminates both the income tax increase DFLers had called for and the gambling expansion that Gov. Tim Pawlenty has insisted on.

Replacing those are a $1-per-pack cigarette tax—a proposal that has shown support in both bodies and in polls—along with a property tax increase and an accounting shift proposed by the governor, and corporate loophole closures offered by DFLers. At $30.7 billion, total spending falls neatly between the $31 billion proposed by the Senate and the governor’s $30.4 billion.

How did this conglomeration of freshmen, veterans, senators, House members, Republicans and Democrats succeed in reaching consensus where leadership has failed?

“We weren’t that fussy,” said Sen. Steve Dille, R-Dassel, who has been at the Legislature since 1986. “You’ve got to be flexible—not so far right or left that you can’t meet in the middle.”

Top leaders had not yet seen the proposal, but Senate Taxes Chairman Larry Pogemiller said he favored it.

“It’s thrilling,” he said. “I think this is the framework to get us out of here. It needs some sandpapering, but it could work.”

A half-dozen DFL freshman legislators made up a pivotal part of the House side, which included maverick Capital Investment Chair Dan Dorman, R-Albert Lea, and Health Care Cost Containment Division Chairman Jim Abeler, R-Anoka.

The Senate side was lead by Senate President Jim Metzen, DFL-South St. Paul, Education Chairman Steve Kelley, DFL-Hopkins, and former Senate Majority Leader John Hottinger, DFL-St. Peter.

Racino

Just before the group’s proposal was unveiled, Pawlenty held a press conference, arguing that the four percent per year spending growth he had proposed should be enough.

His insistence on a racino, he said, remained rooted partly in a desire to change the face of gambling in Minnesota and to get a share of casino profits to one of the state’s largest but poorest tribes—the White Earth Band of Ojibwe.

Pawlenty said his support for slot machines at Canterbury Park racetrack was contingent on the involvement of White Earth as “a stakeholder.” While details were hazy, Pawlenty said he had a broad agreement with White Earth that would give them a share of profits while the state continued to receive $210 million from Canterbury.

House Minority Leader Matt Entenza, DFL-St. Paul, was dubious that such an agreement existed and said Pawlenty should “realize racino is off the table and get over it.”

But White Earth lobbyist Bill Haas said that while the band preferred to have its own casino, it had not ruled out a partnership with Canterbury if the money were right.

However, Haas added, the tribe would have to receive more than the $15 million to $20 million discussed this week by the governor’s office. If more money were offered, the White Earth tribal council would have to vote on whether to participate, he said.

Pawlenty insisted he could still negotiate a deal on education and health care “in some fashion” without racino, but said DFLers might have to give up some things.

He also renewed his call for DFLers to agree to one of his “reforms,” which include initiative and referendum, racino, a ban on school-year teacher strikes, unicameral legislature and some version of school vouchers that would allow some children to attend private schools with taxpayer funds.

Entenza later accused Pawlenty of “holding the budget deal hostage to a right-wing agenda” that included “some items (like unicameral) we haven’t seen since Jesse Ventura went off to grow his beard.”

Bracing for shutdown

Earlier in the day when talks broke down over Pawlenty’s insistence on policy changes, House Speaker Steve Sviggum said that Minnesotans should brace for a shutdown.

“Citizens, like legislators, have to prepare themselves mentally,” he said, after a nearly two-hour meeting with DFLers ended. “It’s not the right thing to do, it’s not a good thing to do, but you don’t want to be just shocked by what is going to happen tomorrow night, either.”

Unlike last year, when an unprecedented regular session meltdown resulted in the loss of every major piece of legislation, lawmakers managed to pass several major budget pieces this year, so the state would not face a complete shutdown.

But there has been no agreement yet on education and health care, which make up the bulk of state spending. Even if a state parks appropriation passes, the state still would have to layoff 11,000 employees and a number of government-funded services would come to a halt.

Sviggum and Johnson were scheduled to resume talks with Pawlenty at the governor’s residence on Wednesday evening.