DFL, Pawlenty trade offers

07/07/2005

Pat Doyle and Patricia Lopez,
Star Tribune
July 7, 2005

Gov. Tim Pawlenty late Wednesday offered to sign a stopgap spending bill to end the partial state government shutdown if DFLers agree to allow a vote on a racino at the Canterbury Park race track.

Senate Majority Leader Dean Johnson, House Speaker Steve Sviggum and House Minority Leader Matt Entenza emerged together from the governor’s office at about 1 a.m. today to tell reporters they needed more time to discuss their latest positions.

Johnson said the latest offer of the governor and House Republicans on education funding seemed acceptable to Senate DFLers, and the two sides needed more time to analyze spending figures for health and human services.

“We are trying to redouble our efforts to get the negotiations moving forward,’’ the Pawlenty said at the news conference. “The gridlock needs to come to an end.’’
Both sides said they would meet again today.

Together, the two proposals offered the first serious developments in the weeklong government shutdown, and legislators expressed new confidence that a tentative agreement might be reached soon to allow the government to reopen at previous funding levels while a final deal is worked out.

Anti-shutdown rally at the Capitol.Stormi GreenerStar TribuneDFLers did not rule out a vote on the governor’s racino proposal, but they said the promise of racino revenue is illusory, given opposition in the Legislature and an opinion by the state attorney general that challenges whether legislators can authorize casino gambling.

Johnson said that Pawlenty’s new offer includes education funding that “seems to be appropriate” and that DFLers will review details of his proposed health and human services funding to see how they affect MinnesotaCare, the subsidized health insurance plan that covers 140,000 lower-income working Minnesotans.

The governor’s offer came hours after Senate DFLers made what they called a “significant and very serious” offer to end the shutdown. They proposed boosting education spending, preserving public health care programs, tightening corporate tax loopholes and expanding gambling slightly.

Their gambling proposal stopped far short of Pawlenty’s proposed racino, which calls for slot machines at Canterbury Park race track in Shakopee, estimated to raise $210 million for state coffers.

Instead, the Democrats would double to 100 the number of poker tables at Canterbury Park, raising an additional $16 million for the state.

Entenza, DFL-St. Paul, and Johnson reiterated Democratic opposition to a racino before returning to negotiations late Wednesday.

Referring to other elements in the governor’s proposal, Entenza said, “I think the governor’s proposal is positive.”

Pawlenty is asking that the House and Senate vote on two separate packages, and said if they agree to do so he will support a continuing resolution to provide stopgap funding for state government while political leaders finalize a deal.

One package would rely on $404 million raised by a proposed 75-cent-a-pack charge on tobacco and another $273 million raised from already agreed-upon revenue sources. That money would help pay for what the governor called core government services, including more money for education, performance compensation for teachers, top priorities of the House and Senate in health care and human services and a portion of a transit budget shortfall.

A second proposal would rely on a racino to raise $210 million for a “supplemental” state spending package, such as more aid to local government, public pensions, improving water quality and providing salary supplements for government employees.

Pawlenty disagreed with Democratic leaders who said a racino was unlikely to pass the House or Senate.

House Speaker Steve Sviggum, R-Kenyon, said a vote on a racino would force legislators to take a position on a funding source most Minnesotans view favorably.

The Senate DFL offer—the first serious counteroffer since talks broke down last Thursday—would give a 5 percent budget increase to K-12 schools in 2006 and 2007 and would represent the largest spending boost to schools in years. As part of the compromise, DFLers would accept a long-standing Pawlenty proposal to tie teacher pay to job performance.

On health care, DFLers would stand by their refusal to cut the rolls of MinnesotaCare. The offer also would require a repeal of the annual $5,000 cap for MinnesotaCare outpatient benefits.

DFLers would, however, agree to cut $323 million from existing funding for health and human services—cuts that Johnson said could result in fewer benefits and more restrictive eligibility.

The offer also would restore lost wages and pension benefits to employees furloughed by the shutdown and plug a nearly $50 million transit shortfall with trunk highway bonds or other non-general fund money.

In a possible sign of narrowing differences, DFLers in their offer agreed to Pawlenty’s 75-cent-per-pack charge on cigarettes and extended a similar charge to all tobacco products, which would raise $404 million. And they accepted about $237 million in revenues previously proposed by Pawlenty.

The Senate offer proposes collecting about $80 million by tightening corporate loopholes. The governor’s proposal does not include that provision. The Senate originally had sought $187 million from the loophole-tightening provision, which Pawlenty opposed.