Posted: 6/6/07
Senator: Pawlenty vetoes upset many from both sides of the aisle
By Charlie Warner
Argus News Editor
Total shock, disbelief, and sadness pretty much summed up state Senator Sharon Erickson Ropesí initial reaction when she was told Gov. Tim Pawlenty had vetoed the state tax bill. Erickson Ropes (DLF-Winona) was in Caledonia last Thursday morning discussing education issues with Caledonia Area Schools Superintendent Mike Moriarty when she got the news.
"I hate to say this, but our governor has sacrificed the people of Minnesota for his own political future," Erickson Ropes said. "A lot of work went into the bills we sent to the governor this past session. They were bills that had bi-partisan support. I authored 51 bills, and 50 of them were co-authored by Republicans. Gov. Pawlenty is taking a very conservative stance six months after the voters of Minnesota issued a mandate for change. Many in St. Paul feel our Governor is posturing himself for national office. I am very disappointed in this."
According to Erickson Ropes, Pawlenty vetoed a bill that would have provided millions in direct-to-taxpayer relief, closed a loophole that lets corporations evade Minnesota taxes, and granted $93 million in additional aid to local governments to ward off property-tax increases. The tax bill both legislative houses approved would have increased state income taxes for the top five percent of the income scale by one half of one percent, which would have generated an additional $1 billion annually.
Because of inadequate local government aid (LGA), counties and local governments have been forced to raise property taxes just to pay for essential services such as police and fire protection. The city of Caledonia would have seen an increase in its LGA allocation of $85,000 this year if not for Pawlentyís veto.
LGA funding to local governments was cut drastically in 2002 when the state faced a $4 billion deficit. To make up for the deep cuts in LGA, homeowners have seen their property taxes increase by more than 12 percent each year from 2002 to 2006.
"The Governor was on a veto tantrum towards the end of the session," Erickson Ropes continued. "His people told us what he would accept and what he wouldnít. The Democrats and Republicans worked together to redo legislation that was beneficial for Minnesotans, and also something we felt the Governor would approve. There are a lot of disappointed legislators, both Republicans and Democrats."
What upset Erickson Ropes the most is how the tax bill veto is going to adversely affect the lower and middle classes, while being a real positive to the very wealthy.
"We have corporations in this state that use our roads, our utilities, our police and fire protection, and make hundreds of millions of dollars in Minnesota, and then are allowed to hide their taxable profits in Jamaica and other foreign countries," Erickson Ropes noted. Part of the tax bill our Governor vetoed was going to get rid of this loophole. The state would have seen an increase of $375 million in state taxes if the tax bill hadnít been vetoed.
"Currently, people in Minnesota earning between $27,000 and $150,000 per year pay about 12 percent in state income taxes," Erickson Ropes reported. "Persons making between $750,000 and $2.25 million per year pay nine percent, and people making over $2.5 million per year pay less than nine percent. The tax bill the Governor just vetoed would have increased the amount of state income tax the very rich would pay by half of one percent. That would have generated over $1 billion. I donít feel itís right someone making over $10 million a year should be taxed at eight percent, and neither did the vast majority of Republican and Democrats in the Minnesota State Legislature. But apparently, our Governor does, because he vetoed the bill."
The vetoing of the transportation bill is another sore spot by many legislators from both sides of the aisle, according to Erickson Ropes. "We felt the state really needed a 10 cents-per-gallon increase in the gas tax. But we were willing to compromise and settled for five cents. The Governor stood firm on no new taxes and vetoed that bill as well. We have many very dangerous roads in this district. I wonder how many more traffic deaths will occur because of our bad roads?"
Erickson Ropes doesnít think a special session would undo what the Governor did with his vetoes. "Even though many Republicans are very upset with what has happened, theyíre not going to support overrides."
The freshman state Senator said her first session in office was exciting, an educational experience, and rewarding up until when Gov. Pawlenty started vetoing everything she and her fellow legislators brought before him. Then, things changed drastically, and not for the good, according to Erickson Ropes.
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