Through frustration’s fog glints hope for a reprieve

06/30/2005

Patricia Lopez and Conrad Defiebre,
Star Tribune
June 30, 2005

In a day that saw more accusations of obstinacy and more closed-door meetings, a few hopeful signs emerged Wednesday that Friday’s partial state 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 is headed to the Senate and House floors today for a vote.

Gov. Tim Pawlenty has indicated he would sign it, perhaps with some line-item vetoes.

In Wednesday’s most unexpected development in the state budget impasse, a bipartisan group of more than 20 House and Senate members presented a split-the-difference budget offer that would eliminate both the top-bracket income tax increase DFLers had sought and the gambling expansion that Pawlenty and Republicans have insisted on.

MnDOT’s John Bray checks a rest stop barricade.Kyndell HarknessStar TribuneReplacing those would be a $1-per-pack cigarette tax along with a property tax increase.

Leaders of both the House and Senate, however, dismissed the plan as riddled with fiscal holes amounting to at least $200 million.

Noting that the proponents boasted that they had developed their budget framework in about 10 minutes, House Speaker Steve Sviggum, R-Kenyon, said, “You could see that. And it’s nothing we haven’t talked about already.”

More talks

Sviggum and the Legislature’s top two DFLers, Senate Majority Leader Dean Johnson and House Minority Leader Matt Entenza, emerged from a two-hour negotiating session with Pawlenty at the governor’s residence shortly before 9 p.m. Wednesday with different views of their bargaining progress and prospects for a budget deal or a shutdown.

The DFLers emphasized the positive. “Continue your plans to go to state parks,” Johnson, DFL-Willmar, said, noting that there are 100,000 camping reservations over the July 4th weekend for an estimated 330,000 Minnesotans. “Minnesota state parks will stay open.”

The DFLers also praised the Republican governor and speaker as more conciliatory and said progress was made on education funding.

Johnson said the Senate today will pass a “lights-on” bill to maintain state funding at current levels and Entenza said all 66 DFL House members will vote for it. Entenza predicted that some Republicans would join them, but 24 will have to do so to bring the bill to a floor vote.

Pawlenty and Sviggum oppose the bill, mainly because it would continue health funding at levels far above their proposals. It also would leave K-12 education with none of the near $1 billion two-year increase envisioned by all parties.

“It’s lights-off for education,” said Sviggum.

Sviggum, meanwhile, agreed that state parks will remain open, but he said he saw little hope of averting a shutdown of other government functions given “the lack of effort from the DFL tonight.”

The governor and legislative leaders planned to reconvene at 7:30 a.m. today in Pawlenty’s State Capitol office. Sviggum said Wednesday night that Pawlenty’s offer of a 75 cents-a-pack cigarette charge—raising about $380 million in revenue—would be withdrawn if no agreement is reached by midnight tonight.

“Citizens, like legislators, have to prepare themselves mentally” for a shutdown, Sviggum said. “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.”

Unlike last year, when a regular session meltdown resulted in the loss of every major piece of legislation, this year lawmakers passed several major budget pieces, so it would be only a partial shutdown. But there has been no agreement yet on K-12 education and health care, which make up the bulk of state spending.

Racino talk

Just before the bipartisan proposal was unveiled, Pawlenty held a news conference to argue that an annual 4 percent spending increase should be enough.

His insistence on a Canterbury Park 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 Chippewa band.

Pawlenty said his support for slot machines at the Shakopee 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 over a two-year budget period.

But 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.”

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

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