Pawlenty puts forth case for no new taxes

01/05/2007

Speaking to the state Chamber of Commerce, he said legislative priorities should be reforms in education, energy and health care.


By Mark Brunswick, Star Tribune
Last update: January 04, 2007 – 10:41 PM


Gov. Tim Pawlenty, still cautious with a $2 billion budget surplus on the eve of what promises to be one of his most politically challenging legislative sessions, pledged fiscal restraint to an obviously supportive crowd at a Minnesota Chamber of Commerce meeting Thursday evening in St. Paul.

"We'll have a nice debate about what the priorities are but live within our means," he said.

Afterward, Pawlenty told reporters that he would not support or propose any tax increases, coming on a day when the DFL-dominated Senate made a number of proposals that would signal an impending battle over spending on issues such as health care and property tax reform.

"Minnesota is not an undertaxed state," he said after the speech. "There is no way they need to raise taxes. The money on the table is enough."

During his speech to the chamber, which holds an annual dinner on the eve of the legislative session, Pawlenty pointed to energy, education and health care reforms as priorities.

He said his goal would be to reduce the state's reliance on fossil fuels by 15 percent in 15 years and to have 25 percent of the state's energy consumption come from renewable energy by 2025.

The chamber also supports ensuring reliable energy, including exploring additional nuclear power plants, but cautioned against "costly and inefficient mandates," according to a legislative agenda distributed to its members and to the media.

The chamber traditionally has been one of Republican Pawlenty's strongest allies at the Capitol, and it faces significant challenges with its agenda in a Legislature in which DFLers took over the majority in the House and strengthened its hold on the Senate. DFLers in both houses have signaled a more aggressive approach to consumer protections, which could translate to problems for the business community.

The chamber opposes any general fund tax increase or restructuring to raise revenue, but it does support an increase in the gasoline tax of as much as 5 cents a gallon. It said health care should be made available "in a private, competitive and well-informed marketplace," a stance that flies in the face of DFL proposals in the Senate for universal health care. Pawlenty supports universal access to health care, though not necessarily with the government providing it.

While the chamber's own legislative priorities differ from Pawlenty's, he urged the business community to continue to support him.

"We can do this without disrupting the economic competitiveness of Minnesota," he said.