Caledonia Argus

Next legislature will have to deal with deficit

Posted: 5/28/02

by T.W. Budig
ECM capitol reporter

The biggest story of the 2002 legislative session was the scramble by lawmakers to make good the projected $2.4 billion budget deficit for 2002-03.

In the end, the task was accomplished.

But lawmakers themselves say the fix, which makes use of about $1.6 billion in reserve funds, uses payment shifts, the tobacco endowment, cuts human services and uses other means to fill the yawning budget gap, fails as an overall solution.

Rep. Jim Abeler, R-Anoka, on the House floor called the Phase Two budget bill ìas good as it can be.î But it doesnít cover the 2004-05 budget deficit at all, he added.

ìI think itís going to be a sobering experience coming back next year,î said Sen. Jane Krentz, DFL- May Township, of dealing with the 2004-05 budget deficit.

Gov. Ventura vetoed the Phase One and Phase Two budget bills, passage of the former back in February sparking the celebrated hunt for Ventura that had Revisor Office officials travelling dark winter roads in order to present the bill to governor.

Ventura, whose administration in January offered a budget-balancing bill containing tax increases but promising long-term fiscal soundness, vetoed the Phase Two budget bill the last week of the session, calling the legislation a political fix.

The Legislature promptly override both budget bill vetoes.

ìI hope the people of Minnesota know where to put the blame,î said Ventura, speaking last week in the Governorís Office.

ìThe Legislature bears full responsibility for the budget fix. Itís theirs,î said Ventura.

While the budget was the big story, a strong subplot was the political banishment of Ventura by the same legislative leaders whom in past session craved the governorís support in the triumvirate two-against-one tug of war at the Capitol.

But Ventura was largely bypassed by lawmakers this session, at one point leaving the third party governor to proclaim his alienation from the budget negotiations.

He had no dogs in the fight, Ventura quipped.

Yet Ventura flares over the accusation by lawmakers that heís been disengaged. Itís simple DFL-Republican tag-team politics, he argues.

The governor did provide a small civics lesson on the interplay of governmental branches following the close of session (May 20) by lopping off about a third of the $977 million bonding bill.

Sen. Deanna Wiener, DFL-Eagan, said she found Venturaís cavalier attitude towards his vetoing of the bonding bill ó his Saturday Night Live samurai bravado ó disappointing.

ìItís not a comical thing when weíre trying to put together a bonding bill,î said Wiener, who served as a capital investment conferee.

At least the higher education asset preservation bonding ó about $95 million for MnSCU and the University of Minnesota ó was spared, she said.

But Ventura said last week that lawmakers have only themselves to blame for bonding bill vetoes.

ìIf they fixed the budget completely like the one I offered in January, the bonding bill would be a lot higher,î he said.

Transportation

Transportation became the top issues at the Capitol last session but efforts at crafting a transportation bill failed as House and Senate conferees could not agree on raising the gas tax, transit funding, and other transportation issues.

Sen. Dean Johnson, DFL-Willmar, transportation finance chair, called the death of the transportation bill a ìpolitical tragedy.î

House Speaker Steve Sviggum, R-Kenyon, said that none of the transportation packages he reviewed, the Senateís nor even those offered by House conferees that ultimately included a three-cent gas tax increase, ever seemed like a package that could garner 68 votes in the House to pass.

ìWhatever package I mended a little bit here, I lost votes there,î said Sviggum, speaking during the last week of the session.

In general, the Republican House preferred to bond for transportation while the DFL Senate proposed a six-cent gas tax increase, bonding, and a metropolitan area sales tax referendum to bring additional funding to metro highways and transit.

But Republican leaders are looking for new transportation funding ideas.

ìEveryone agrees we need more money in transportation. The question is ëHow do you pay for it,íî said Majority Leader Tim Pawlenty, R- Eagan, speaking last week.

The ìtired old responseî that every time thereís a problem the state should raise taxes canít be the only response, Pawlenty explained.

Besides the transportation bill crashing, House Republicans steadfastly refused to fund the Northstar Commuter Rail line, arguing the projectís cost-benefit ratio was even poorer than for light rail.

Some transportation funding was included in the bonding bill, with the Northwest Metro Busway gaining $20 million and $45 million slated for local bridge repair and renovation.

DFLers are jumping on transportation as a campaign issue.

Other session issues include:

ïStadium: lawmakers passed a stadium bill calling for the construction of a $330 million, roof-ready ball park. It requires an upfront payment of $120 million from the Twins and private contributors. Theoretically, the legislation if carried out will ensure that Major League Baseball remain in Minnesota for decades to come.

ïBiodiesel: lawmakers approved a two percent biodiesel mandate for diesel fuel to be carried out if certain production and political standards are met. Biodiesel, which utilizes vegetable and animal fats, is seen as a boost for Minnesota farmers.

ïPhosphorus ban: lawmakers outlawed the use of phosphorus fertilizers in the metro while restricting phosphorus levels in fertilizers used outside the metro to no more than three percent. The phosphorus restrictions do not apply to agriculture.

ïFireworks: Already dubbed the Sparkler Session, lawmakers legalized the use of sparklers, glowworms, and snaps. But firecrackers, rockets, and other fireworks remain illegal.

ïJob loss: A 13-week extension of state unemployment benefits for displaced workers at Farmland Food, Fingerhut in St. Cloud, and airline workers was approved.

ïNatural resources: the DNR will establish a task force to study ATV policies and report its findings to Legislature next session. A gross overlimit violation bill was passed toughening state law for wanton poaching, and some 102,315 acres of Con-Con lands in Beltrami, Roseau and Marshall counties were designated wildlife management areas and opened to outdoor pursuits.

One environmental initiative that failed was the 3/16th sales tax amendment which, if approved by voters, would have channeled 3/16th of one percent of the state sales tax to the environment.

The bill never reached the House or Senate floor. Rep. Dennis Ozment, R-Rosemount, environmental and natural resources policy chairman, said 3/16th will ìabsolutelyî be back.

Natural resources and environmental funding are often the first place lawmakers look to trim the budget, he said. And 3/16th is a means of countering this tendency, he explained.

ïGovernorís Mansion: lawmakers slated some $375,000 to reopen the brick-Tudor mansion that Gov. Ventura had earlier closed in a celebrated session budget tussle.

ïTaxes: meat and bread tax mistakenly imposed last session was repealed. Language in bill clarifies that meals served in public and private schools are exempt from the sales tax.

ïOrgan donor: legislation passed strengthening wishes of organ donors as designated on drivers license. The clarification was believed needed as sometimes family members objected to a loved one becoming a donor though the donor had clearly made the decision.

ïPrescription drugs: coverage under Minnesota Prescription Drug Program was expanded for seniors.

ïUnwanted phonecalls: Residents can now place their names on a No-Call List that telemarketers are expected to honor.

ïMisc: ìProud To Be A Veteranî license plate approved: ìGraceî designated official state photo; the Legislature failed to pass a redistricting bill and a court appointment panel issued a redistricting order in March.

ïFizzles: bills failing this session include unicameral, initiative and referendum, .08 blood alcohol limit, lifetime prohibition of felons possessing firearms, student-on-student abuse, and redesigning the state flag.

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