Gov. Pawlenty’s proposals

04/24/2005

Star Tribune
April 25, 2005


GOP HOUSE | PAWLENTY PROPOSALS AT A GLANCE

THE POLITICAL CONTRIBUTION REFUND: Under the 15-year-old program, any Minnesota taxpayer who gives $50 or more to a state campaign or party can get a maximum refund of $50 a year. Nobody knows for sure how many fewer small givers would contribute if it weren’t for this incentive, but politicos market it aggressively. In the 2001-2002 election cycle, about $11 million was refunded, making it the largest public financing mechanism. Pawlenty has proposed abolishing the program.

THE CHECK-OFF: On income tax and property tax refund forms, taxpayers may check a box to earmark $5 for a particular political party or for a fund that is shared by all candidates. It’s a no-cost deal for individual taxpayers because the money comes from the state general fund. Pawlenty is proposing that taxpayers could designate anywhere from $1 to $25, or $50 a couple. But the money would come from the taxpayer’s pocket (subtracted from the refund or added to the tax owed), which would reduce the incentive to check the box. The checkoff produces about $3.8 million a year, the bulk of the money directly subsidizes campaigns.

DIRECT APPROPRIATION: About $1.5 million is directly appropriated from the general fund for distribution to candidates in election years, supplementing the checkoff. Combined checkoffs and appropriations available for candidates in 2002 were about $4.4 million. That accounted for about a fourth of the funding for those who accepted the money and abided by aggregate spending limits, which was about $27,000 for a House candidate in 2002 and about $2.3 million for the governor’s race.

OVERALL EFFECT: Hard-pressed state coffers would get $10 million to $16 million to soften the blows on popular programs such as education and health care or to minimize the need for tax increases. Defenders of the subsidies estimate that the proposals could remove nearly all of the money available for public financing. A state Senate candidate who got $10,000 would get $1,000. The difference would have to be made up in increased contributions from individuals, interest groups and lobbyists.