First things first. I'm not at the Capitol. Yes, this is the Capitol Letter, but I'm based in downtown St. Paul. I worked out of the Capitol for about 10 years and now direct MPR's political coverage. The purpose of this letter is to give you a quick update and fast take on the news out of the Capitol every day. Think of it as your daily political newscast on the Web. I'll link to the items I cite whenever possible so you can get more details on whatever I highlight. I hope you'll give me some feedback via e-mail so this soon becomes more than a one way street.

The session begins Tuesday. The big items on the agenda? The budget, health care, education, transportation. Other issues include stadiums, gambling, prison space and capitol improvements. In other words, the same things that have been on the agenda for the past four or five years.

MPR's Michael Khoo has this take on the budget, and why some of these issues seem so familiar.

As deficits go, it could be much worse. Projected to reach $700 million, the current problem is only a fraction of the multi-billion dollar deficit of two years ago. But it's also the fourth straight projected shortfall. In each of the past three years, lawmakers or the governor or both patched the budget and appeared to right the financial ship, only to see it list again by the next forecast.

Former Finance Commissioner John Gunyou says there's a simple explanation for the recurring headache. "Minnesota should not be facing yet another budget deficit. This has nothing to do with the economy. It has everything to do with the irresponsible financial decisions that have been made over the last three years," according to Gunyou.

Gunyou goes on to say it's time for a permanent fix. That means either raising taxes or cutting spending. Gov. Tim Pawlenty says he will stick by his pledge not to raise taxes. But he's also promised schools more money. Assuming the Legislature passes a bonding bill that will add some debt service to the budget, and House GOP leaders are promising an increase for nursing homes. As Khoo points out the new spending (not to mention inflation) would mean the size of the shortfall is actually significantly higher than $700 million.

But the governor is also hinting at big spending cuts in health care, particularly for a program that covers single adults. Pawlenty notes that health care spending is increasing much faster than the inflation rate.

In the Star Tribune, Patricia Lopez has some details:

That Minnesota offers care to childless adults may be a measure of its commitment to a basic quality of life for all. At its peak enrollment, in the middle 1990s, the program served 43,000 Minnesotans a year at a cost of $135 million. It now serves 37,340 Minnesotans at a cost of $241 million a year, which is borne by the state alone. Eliminating that program would net the state nearly $500 million for the 2006-07 budget cycle, but at the price, critics say, of having tens of thousands of Minnesotans either turn up in emergency rooms or simply do without care.

Pawlenty has not said he will eliminate the program. But he does point out that most other states do not insure low-income childless adults. Wisconsin, for instance, has no equivalent.

Lopez notes that Pawlenty is also likely to propose more cuts in the MinnesotaCare program.

The governor clearly thinks the state is too generous in health care benefits. Whether Democrats can find ways to cut costs without cutting benefits for large numbers of people remains to be seen. Like the governor they are not proposing tax increases, at least for now. But expect them to point out that just because the state doesn't pay the bills doesn't mean they don't get paid. People who don't have health insurance tend to show up at emergency rooms with serious problems, and one way or another we all end up paying for their care.