Capitol View: July 6, 2011 Archive

Zellers talks budget...

Posted at 8:50 AM on July 6, 2011 by Tom Scheck
Filed under: 2011 Shutdown, MN Legislature, Mark Dayton

Republican legislative leaders and Governor Mark Dayton are heading into their second day of budget talks since a partial state government shutdown. The two sides met yesterday without reporting any progress. House Speaker Kurt Zellers told MPR's Morning Edition today he expects talks will narrow to health care programs this afternoon.

"I think that will be a lot of the focus today," Zellers said. "Where our health care folks have been, what they have been able to accomplish you know in the last day or two here, and seeing if maybe that number that we were apart really wasn't as far apart as we though it was."

Zellers said one area that they can find cost savings is by asking the federal government for approval to change how the federal Medicaid program is run in the state. Dayton has said there's no guarantee the federal government will approve the request.

Zellers also renewed his call for Dayton to call lawmakers back into special session, something Dayton said he's not willing to do until a full budget deal is reached.

Dayton and the GOP controlled Legislature are at odds over the best way to erase a $5 billion budget deficit. Dayton wants to raise income taxes on top earners. Republicans say they don't want to spend any more money.

Zellers repeated his stance that the GOP budget offers from last week are now off the table because Gov. Dayton rejected them. Republicans suggested an additional K12 payment shift and borrowing against future tobacco payments to bring in more revenue. The governor said he would accept one of those options but not both because it won't fix the state's budget problems over the long-term.

Zellers said the K12 shift and the tobacco bonding is "not perfect" but said those options are better than Dayton's income tax increase.

"Rather than taxing a small businesswoman out of the state because she files her business and personal income together," Zellers said. "Raising those taxes with tough economic times and when our neighboring states and states all across the country aren't makes Minnesota uncompetitive,"

Zellers also didn't take an expansion of gambling off of the table. But he said some of the problems with gambling is that local officials in Minneapolis and Bloomington aren't interested in a casino in their cities.

"That would be one option, yes" Zellers said of expanding gambling. "I'm not opposed to that. If it's not something the governor is going to sign, I don't think we should put the taxpayers or the legislators through the exercise."

Dayton has said he's open to an expansion gambling but questioned whether the revenues generated from a casino or a slot machines at the state's horse tracks would generate significant revenue.

Zellers also reiterated that GOP legislators are comfortable with their $34 billion budget. The key question is whether they can find a proposal that meets Dayton's demands for more revenue.

Here's the full interview: Listen

Shutdown Day 6: Construction trades call for bonding bill

Posted at 12:16 PM on July 6, 2011 by Tom Scheck
Filed under: 2011 Shutdown, MN Legislature, Mark Dayton

A coalition of labor and environmental groups is calling on Governor Mark Dayton and Republican legislative leaders to end the six-day-old government shutdown with a budget deal that creates new jobs.

Members of the Blue Green Alliance said the mass layoff of public employees, as well as the idling of thousands of construction workers, is hurting Minnesota. Bob Struve of the American Council of Engineering Companies said the 150 companies he represents in Minnesota could lose 1,000 jobs in a prolonged shutdown.

"Construction is a seasonal business, and the damage caused by a long shutdown means that jobs, projects will be moved to 2012 and possibly even cancelled," Struve said. "The damage to our firms could be very, very significant."

As members called for an end to the shutdown, they renewed their call for Dayton and GOP legislative leaders to pass a bonding bill.

Dayton proposed a $1 billion bonding bill early in the session, but GOP leaders never supported it. Still, Harry Melander of the Minnesota State Building and Construction Trades Council said he thinks a bonding bill could be part of a final budget agreement.

"We continue to be optimistic that the Legislature will do what's right for Minnesota," Melander said. "And try to put tens of thousands of construction workers back to work and provide needed infrastructure repairs that need to happen to make Minnesota the state that it is."

Neither Dayton or GOP legislative leaders have discussed a bonding bill in the final days of budget negotiations.

Dayton revises tax offer in hopes of reaching budget deal

Posted at 4:28 PM on July 6, 2011 by Tom Scheck (9 Comments)
Filed under: 2011 Shutdown, MN Legislature, Mark Dayton

Gov. Dayton tells reporters about his latest budget offer:

GOP legislative leaders react to Dayton's proposal:

Gov. Dayton is revising his tax proposal with the hopes of convincing Republicans to accept some sort of revenue increase. Dayton has presented GOP legisaltive leaders with two offers. The first would create an temporary income tax increase on people making more than $1 million. It would also increase surcharges on hospitals and health plans and delay payments to schools.

The second option would raise cigarette taxes by $1 a pack, increase the health care surcharge and delay payments to schools.

Dayton said he was revising his budget plan with the hopes of convincing Republicans to accept some sort of revenue. Republicans quickly rejected the plan which prompted Dayton to say Republicans don't support any proposal that increases revenue.

"If this is a step back, it's their step back," Dayton said.

GOP legislative leaders renewed their call for Dayton to call lawmakers back into a special session so they can pass a bill that would continue funding.

GOP House Speaker Kurt Zellers says the offer is a step backwards. He says Republicans campaigned on holding the line on taxes and spending.

"If that's what we campaigned on and that's what we were elected on, how do our members go back home and say we gave up all of our principles to the governor?" Zellers told reporters. "It's not about wins and losses. It's about keeping your word to the people who elected you."

The sides are at odds over the best way to erase a $5 billion projected budget deficit. Dayton says ongoing revenue has to be on the table. Republicans say they don't support any spending increases. The two sides are $1.4 billion apart on a two year budget.

Minnesota is in the sixth day of a state government shutdown.

Update:

Michael Brodkorb, spokesman for the Senate Republican Caucus and Deputy Chair of the Minnesota Republican Party, sent an e-mail to reporters pointing out that Dayton rejected a tobacco tax increase during the 2010 campaign for governor.

"You raise the price of a pack of cigarettes $1.50 as Mr. Horner proposed, that's money out of the pockets of working people and poorer people, and that means kids don't have as much to eat or don't have the same quality of food. Those are addictions, and I think you treat addictions as addictions and you don't penalize the people who are dealing with them economically." Source: Smart Politics

For his part, Dayton said there are few viable alternatives left that would raise the amount of money needed to close the gap between him and Republicans.

"After the income tax there aren't any good taxes in my view. But the only real sources of permanent revenue are property taxes, sales taxes and so-called sin taxes," Dayton told reporters.

Here's Dayton's letter:

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Here's what Dayton says his $1.4 billion in added revenue will protect:

20110706143827202