Capitol View: May 16, 2009 Archive

BYOB (Bring your own budget)

Posted at 12:26 AM on May 16, 2009 by Tom Scheck

Gov. Pawlenty's spokesman said the governor will meet with DFL legislative leaders Saturday morning at 11 at the governor's residence office. They'll meet with the hopes of reaching a deal on the two year budget. The Legislature is constitutionally required to finish its work on Monday.

Pawlenty makes new offer to balance budget with more cuts

Posted at 1:24 PM on May 16, 2009 by Tim Pugmire

Gov. Tim Pawlenty and DFL Legislative leaders resumed negotiations today to try to erase a $4.6 billion deficit.

They met for about an hour in the governor's office at the State Capitol. Senate Majority Leader Larry Pogemiller, DFL-Minneapolis, said Pawlenty was preparing an offer that hinges on another $1.2 billion in budget cuts. Pogemiller said the Republican governor also agreed to a $1.8 billion shift in education payments and had backed off his $1 billion appropriation bond plan. He said Pawlenty also restated his opposition to any tax increases.

"We of course view that as a negative, because we don't see how you can stabilize the budget without permanent revenue," Pogemiller said.

Details of the governor's offer won't be available until later in the day, but House Speaker Margaret Anderson Kelliher, DFL-Minneapolis, said some of the additional spending reductions would likely come from state aid to cities and counties, higher education and hospitals.

Pawlenty spokesman Brian McClung said the governor remains poised to use line-item vetoes and his unallotment authority to end the session on time, but his preference is to negotiate an agreement.

"But that will take the Democrats in the Legislature showing a willingness to compromise as the governor has shown a willingness to compromise throughout this process," McClung said.

The Legislature must adjourn by midnight Monday.

Legislators get details of governor's budget offer

Posted at 4:55 PM on May 16, 2009 by Tim Pugmire

Members of the Legislative Commission on Planning and Fiscal Policy are meeting to go over Gov. Tim Pawlenty's latest budget offer. Here's what they're looking at:

Governor's offer
Saturday May 16

Close the remaining $2.7 billion gap (after line item vetoes) by accepting House DFL level of education payment shift and additional spending reductions.

Accept House DFL K-12 shift level
$1.75 billion

Reduce LGA and related items
$450 million

Other items
$100 million
Renters credit to apply no more taxes paid (i.e. eliminate windfall) @ 50; political contribution refund @ 10; sustainable forest @ 5; PILT payment adjustment @ 8; taconite state aid @ 13; additional compliance @ 14

Additional HHS items to be negotiated with legislature including possible use of HCAF surplus for appropriate purposes
$250 million

Higher education reduction
$190 million

DFL counter offer

Posted at 10:26 PM on May 16, 2009 by Tom Scheck (2 Comments)

Here's the counter offer from the DFL legislative leaders. I rewrote the sheet they gave out but added some context from follow-up interviews with DFL House Speaker Margaret Anderson Kelliher and DFL Senate Majority Leader Larry Pogemiller:

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