May 19, 2008
May 19 00:12 Gov. Pawlenty Flyaround Schedule May 19 01:09 Tax Bill Approved May 19 02:03 Deficit Eliminated Without Increasing Taxes May 19 09:01 Republicans Put the Taxpayer First May 19 11:29 Airportblogging Gov. Pawlenty, GOP News Conference May 19 13:48 Liveblogging the DFL News Conference May 19 18:02 Sen. 'Everything's Off-Limits' Strikes Again May 19 23:34 That's Bipartisanship?
Gov. Pawlenty Flyaround Schedule
Monday, May 19
8:30 a.m. - Moorhead
Moorhead Municipal Airport Lobby
3309 70th Street South
Glyndon
10:15 a.m. - Duluth
Monaco Air Terminal
2nd Floor Conference Room
4535 Airport Approach Road
Duluth
11:30 a.m. - St. Cloud
Saint Cloud Regional Airport
General Aviation Building Lobby
1550 45th Avenue Southeast
Saint Cloud
12:45 p.m. - Rochester
Rochester Aviation Conference Room
7300 Brataas Drive Southwest
Rochester
2:15 p.m. - Saint Paul
State Capitol
Governor's Reception Room
Saint Paul
Posted Monday, May 19, 2008 12:12 AM
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Tax Bill Approved
Thanks to Gov. Pawlenty's insistence on capping property tax increases and his insistence on direct property tax refunds, the Legislature passed a Tax Bill that includes permanent property tax relief, caps property tax increases and puts rural DFLers in a difficult political position.
Highlights of the bill include permanent property tax relief based on ability to pay and a 3.9% cap on how much local governments can increase property taxes for the next 3 years. Under the provisions of this bill, local governments can't raise property taxes more than 3.9% each of the next 3 years.
The House DFL bill from last year was a far different creature than passed this year. In fact, the people that studied last year's bill said that it guaranteed a tax increase but didn't promise guaranteed property tax relief. Here's the outline on last year's property tax relief plan :
Marquart's proposal would cost $543 million, most of which would come from a new, higher income tax rate on couples earning more than $400,000 a year. The new property tax relief money would spend:Listen to that opening statement. In order to provide any property tax relief, the DFL would create a new income tax rate on small businesses. It's a safe bet that alot of those small businesses won't stay in Minnesota. It's a guarantee that this insane-sized tax increase will drive many businesses out of business. House Tax Committee Chair Ann Lenczewski says that everyone would benefit from the House DFL plan. The property tax relief isn't guaranteed, though:
- $223 million to increase refunds.
- $133 million to lower school levies.
- $83 million to increase aids paid to local governments.
- $104 million to fill gaps while the property tax system changes.
However, that relief will not come if money is not available to fund it.That property tax relief plan was doomed from the start because we were heading for a deficit. This year's plan is (a) guaranteed,(b) bigger than the DFL bill and (c) caps property tax increases the next three years.
The thing that taxpayers should keep in mind is that this bill wouldn't have happened if not for the negotiating skills of Gov. Pawlenty and the House GOP's insistence on direct relief.
In pure partisan terms, this is a major victory for the GOP. Their plan won out and it's a vastly superior plan for taxpayers. Don't think that that won't be mentioned during the campaign.
Just a sidenote: This is what happens when Republicans (a) stick together and (b) stick with their principles. When we're the party of ideas, we win. When we try and win on being the less disgusting option to Democrats, we lose. Rest assured that this campaign, at least on the local level, will be a battle of ideas.
You can take that to the bank, along with your property tax refund.
Posted Monday, May 19, 2008 8:59 PM
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Deficit Eliminated Without Increasing Taxes
The House GOP gave Gov. Pawlenty the support he needed. As a result, they accomplished the improbable. They eliminated the forecasted budget deficit while prioritizing spending instead of by raising taxes. Here's the AP's report of the budget agreement:
Pushed to their session limit, Minnesota lawmakers drove through a bipartisan agreement late Sunday that will make future property tax increases less severe, help schools pay their bills, make it costlier to get a speeding ticket and provide a new park for nature lovers.This wasn't inevitable but it was predictable. When Gov. Pawlenty line-itemed the Central Corridor project from the bonding bill, he gave himself a huge bargaining chip in the budget negotiations. That didn't guarantee that the DFL would do the right thing but it upped the odds of that happening.
As if on cue, fireworks from the state's 150th anniversary celebration boomed outside the Capitol just before the final bill passed.
Under the state constitution, all bills had to pass by midnight Sunday. Top lawmakers and Gov. Tim Pawlenty spent the last few days negotiating around the clock to get a deal acceptable to all sides. At 9:30 p.m., the Senate signed off on the last piece, a tax bill containing relief for homeowners. The House ended its session at about 11:45 p.m., with the Senate following just minutes later.
The Legislature also passed bills addressing a nearly $1 billion state shortfall and authorizing borrowing to purchase land around Lake Vermilion for the park and put up state matching money for a second Twin Cities light rail line.
The biggest winners in this, by far, are Minnesota's taxpayers. Taxes weren't increased. In fact, some taxpayers will see significant property tax relief as a result of Gov. Pawlenty's persistence on Minnesota taxpayers' behalf. Here's the AP's description of the property tax relief:
The property tax portion was central to the agreement. Under it, cities and counties won't be able to raise their tax levies by more than 3.9 percent a year for the next three years. The state will send them more than $60 million more next year, an amount that will climb in future years. And homeowners eligible for state refunds tied to their property taxes will have another $25 million to draw from.Tom Bakk, the Senate Taxes Committee Chair, voiced concerned for local governments:
House researchers say 73,000 homeowners will benefit from the additional refunds, including 10,000 who weren't eligible for the program previously. The maximum refund is $2,300. Pawlenty said the levy limit is projected to save taxpayers $78.5 million in 2009 and $460.5 million over the next three years. Pawlenty said homeowners shouldn't expect to see their tax bills fall, but they will see slower upticks after years of sharp spikes.
Senate Taxes Committee Chairman Tom Bakk said it's a needed "timeout" from the increases many in Minnesota have experienced. But he said he'll be watching for ramifications on municipal government services.TRANSLATION: Governments, not taxpayers, will have to go on diets.
"We are going to put some stress on local units of government with this," Bakk said.
The plan offers some leeway by allowing for greater increases in local levies if the money raised is used for new police officers and firefighters. Governments coping with spiraling mortgage foreclosure rates could also get some wiggle room.
That's enough to make a conservative smile.
Posted Monday, May 19, 2008 2:03 AM
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Republicans Put the Taxpayer First
Republicans Put the Taxpayer First is the title Minority Leader Seifert gave to his after-session summary. I couldn't put it better my self. Here's the text of Leader Seifert's summary:
By the time it came to a close, this past legislative session was the longest session in Minnesota's 150-year history. Along the way came victories that were sometimes small and not always easy to win.Make no mistake about something: This type of property tax relief wasn't in the offing if not for Gov. Pawlenty's and Leader Seiferet's tenacity in insisting that it be including. AS I outlined here and here , the DFL plan was significantly different than did the property tax relief plan that we're getting.
Many of those victories came because of the commitment Governor Tim Pawlenty and the Minnesota House Republicans share to protect the wallets of Minnesota taxpayers. We fought back more than $5 billion worth of proposed tax increases by the Democrats that, if passed, would have damaged an already troubled economy. Our commitment led to property tax relief delivered directly to people, not funneled through various levels of government.
House Republicans were also the driving factor behind a funding increase for nursing home workers this year . We were pleased the Democrats joined us to make this necessary and needed investment happen.
We fought against efforts to expand subsidized health care programs that are growing beyond what taxpayers can afford to support. Instead of expanding government, Republicans successfully secured tax credits for uninsured Minnesotans who purchase private insurance. We remain firmly committed to providing affordable and accessible health care through the private market, not a single-payer government bureaucracy.
Despite the clear need to grow jobs and improve the economy, the task of meeting the challenge was left to the cutting room floor. While jobs disappeared and the price of basic living expenses grew, Democrats spent the Legislature's time on bills to allow dogs at outdoor cafes, provide chiropractic care to pets and declare hockey the official state. These misplaced priorities meant they forgot to address our state's greatest need: jobs.
Economic development and job growth should be the cornerstone of our state's future. It is unfortunate that private sector job growth took a backburner to an expensive and explosive growth in government programs and services. Even with this year's budget deficit, the state budget grew by 9.8 percent by the time this Legislature adjourned. Our economic challenges do not appear to be over: A projected $1 billion
deficit awaits lawmakers when they return to the State Capitol in January 2009.
Now, the longest legislative session in state history is complete, property tax relief and real health care reform are on the way and Minnesota's budget is balanced because we put the taxpayers first.
While property tax relief and reform is this session's highlight, it isn't the only significant GOP achievement from these negotiations. Other items on the GOP agenda worth highlighting are getting the tax credit for health care included in the final bill, something that definitely wasn't in the DFL bill. This is genuine free-market reform that will be the model for the nation.
When they first took control of the Minnesota House, the DFL talked about jobs as their top priority. The only jobs bills they produced will marginally increase Minnesota's prosperity but fall far short of what was possible. Had the legislature passed income tax relief, something Rep. Laura Brod advocated, we might've been seeing a much-improved jobs situation right now.
Stay tuned to this blog for more takes on the session that was.
Posted Monday, May 19, 2008 2:28 PM
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Airportblogging Gov. Pawlenty, GOP News Conference
11:24: I'm just getting setup for liveblogging Gov. Pawlenty's St. Cloud end-of-session wrap-up. We shouold be getting started soon.
11:30: We're about to get started. Brian McClung is handing out the accomplishments reports.
11:35: Gov. Pawlenty now introducing our local legislators & talking about our brighter future. "Our budget is balanced." Our health care is more affordable." "In terms of budgets & taxes...we were intent on state government living within its means." Property taxes have been rising too fast. Recognized that capping property taxes was best way to achieve property tax relief. Savings will total $460 million.
11:38: "Mayor Kleis tells me that St. Cloud's cap is a matterof policy." That cap is less than the cap in the bill.
11:41: Republicans were able to get into the bill & start reforming health care. Highlights tax credits for private health care.
11:43: Talking about giving Mayor Kleis a broom for the "clean sweep" in the bonding bill.
11:45: Dan Severson talking now about the veterans bonding bill. Senate not supportive of veterans issues. "We had many good provisions for veterans."
insured.
11:48: "We took some hard votes to increase K-12 funding." "We kept Governor's reforms in place, including QComp."
11:50: Steve Gottwalt- We balanced the budget without raising taxes. We increased school funding thanks to Republicans standing strong with Gov. Pawlenty. "I've been an advocate" for making education accountable. Republicans wanted a 4%-4% increase in K-12 funding LAST YEAR. Limiting property taxes is "just downright responsible."
11:54: We kept JOBZ, which helps St. Cloud.
11:55: We got more people covered without shoving them all into MinnesotaCare. Almost half of those insured will be through private insurance.
11:58: We made "some progress" towards 2010-2011 deficit.
12:00: Theresa Bohnen: "Thank you for JOBZ. if that didn't stay in place, there was a company that" the Chamber is working with that said that they'd go to Wisconsin."
12:02: News conference is over.
Posted Monday, May 19, 2008 6:08 PM
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Liveblogging the DFL News Conference
1:25: The DFL coningent just arrived. Tarryl, Speaker Kelliher, Leaders Sertich & Pogemiller & Larry Haws are here.
1:27: We're here to talk about all the things we accomplished. "We're here to talk about the extra $51 per student." Recognizing Reps. Haws & Severson for working on vets issues.
1:29: Turned it over to Tarryl. "St. Cloud has alot to be thankful for." "We worked to cut spending by $350 million." "We need to make sure communities have the resources they need." Governments, not people, are the priority?
1:32: Pogemiller injects "Talk about your bridge." Tarryl: "It isn't my bridge." Now talking about the role transportation bill plays in rebuilding the DeSoto Bridge. Tarryl to St. Cloud Airport direction: "Sorry about not getting airport more money."
1:34: Leader Sertich talking about adding 12,000 people to the insured list. Difficult making cuts. Just mentioned in passing that 5,000 of those people will be added through tax credits, not via MinnesotaCare. The tax credit is a big improvement.
1:36: Haws talking about "sticking with the basics." "We modeled how to serve." "When the sum of the part is greater than the individual" , the result is good. "Mr. Mareck's people want to be working." Haws is talking extensively about the bonding bill. (Prosperity is gov't.'s responsibility.) "We will change from NCLB to No School District Left Behind." "We will not be the great state of Minnesota until we solve" K-12. Just wondering: Is voting for most of the tax increases, estimated at $12.1 billion, sticking with the basics? Is bonding bill the most efficient way of creating jobs?
1:41: Kellliher: Transportation bill will add 50K jobs.
1:44: Pogie "The biggest disappointment was not taking care of the structural deficit." Talks about including inflation, blah, blah, blah. "Next year will be a tough session."
1:46: Larry S.: Were the JOBZ reforms important? Tarryl: I disagreed with Larry Pogemiller on this." Pogemiller: "I was trying to get JOBZ elimineted but Tarryl & Gov. Pawlenty won." Lighthearted laughter at that point.
Originally posted Monday, May 19, 2008, revised 20-May 8:08 AM
Comment 1 by J. Ewing at 19-May-08 03:09 PM
Funny that nobody ever talks about "we added 50K jobs" thanks to new government spending, but lost 100K jobs due to higher taxes.
Sen. 'Everything's Off-Limits' Strikes Again
Barack Obama is sounding more whiny by the day. If he isn't careful, he'll soon make Jimmy Carter look forceful. Today's episode starts with Sen. Obama declaring that his wife's statements at campaign rallies are off-limits :
Michelle Obama was asked about the ad on "GMA," but her husband said, "Let me just interject on this."Sen. Obama, if she's making stump speeches, then those speeches are fair game. There aren't any scrutiny-free zones in this election. If you don't want her scrutinized, then keep her away from the microphones.
"The GOP, should I be the nominee, I think can say whatever they want to say about me, my track record," Obama said. "I've been in public life for 20 years. I expect them to pore through everything that I've said, every utterance, every statement. And to paint it in the most undesirable light possible. That's what they do."
"But I do want to say this to the GOP. If they think that they're going to try to make Michelle an issue in this campaign, they should be careful. Because that I find unacceptable," he said.
This is hypocritcal of Sen. Obama, too, especially since he went after Bill Clinton's stump speeches. If Bill Clinton's stump speeches are justified targets, then so are Michelle Obama's. I suspect that Sen. Obama is making this an issue because Michelle Obama's anti-American diatribes are hurting him politically, especially with swing voters.
Sen. and Mrs. Obama aren't much different than Billary 16 years ago. The only difference between them is that then-Gov. Clinton had some gravitas whereas Sen. Obama is a lightweight who couldn't wonk his way out of a wet paper bag. To steal a phrase from How the Grinch Stole Christmas (the cartoon), Hillary and Michelle have all the charm of a seasick crocodile. Shouldn't we learn that the Obamas are the identical two-for-the-price-of-one couple that we had to deal with when the Clintons got elected?
The bottom line is this: We won't talk about Michelle Obama the minute she stops making anti-American speeches on her husband's behalf. Not a minute sooner.
Sen. Obama can take that to the bank.
Posted Monday, May 19, 2008 6:03 PM
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That's Bipartisanship?
According to Tarryl Clark's statement , bipartisanship was the byword this session. Here's that portion of her session-ending press release:
In contrast to previous sessions, the 2008 session saw less partisan bickering. "I think that's because people saw that there wasn't much to be gained by finger-pointing and 'partisanship for partisanship's sake,'" said Clark.It wasn't that long ago when parts of the DFL leadership were saying that Gov. Pawlenty was irrelevant :
Those ongoing discussions do not involve Republican Pawlenty.
"He's not really a factor," Senate Transportation Chairman Steve Murphy, DFL-Red Wing, said of Pawlenty. "He wants us to compromise to his position; that's not going to happen. We're going to pass a bill, the governor's going to veto it, and we're going to try to override it."It wasn't just Sen. Murphy who sounded this note:
Pawlenty's "hard stance has kind of taken him out of the debate," said House Majority Leader Tony Sertich, DFL-Chisholm. "Since the beginning, he's been the roadblock, and he's consistently, I think, taken himself out of the negotiations, but if he's willing to enter back in, we're always willing to listen," he said.For all their talk about bipartisanship, there wasn't much bipartisan action until gov. Pawlenty turned the tables on the DFL in the bonding bill. That's when he took a $925 million bonding bill and turned it into a $717 million bonding bill while vetoing the line item out for the Central Corridor, among other things.
After that, Democrats knew that Gov. Pawlenty held the cards. That's when they knew they'd have to cooperate with Gov. Pawlenty on his terms. Property tax relief is a perfect example of the difference a veto makes. Here's what last year's bill included :
Marquart's proposal would cost $543 million, most of which would come from a new, higher income tax rate on couples earning more than $400,000 a year. The new property tax relief money would spend:Compare that with this year's property tax relief:
- $223 million to increase refunds.
- $133 million to lower school levies.
- $83 million to increase aids paid to local governments.
- $104 million to fill gaps while the property tax system changes.
- Property taxes capped for three years, with allowances for population growth and inflation.
- Tax credits for veterans and military personnel of up to a $750 credit for disabled vets or military service members.
- Permanent property tax relief , including $460.5 million worth of relief over the next 3 years plus an additional $25 million for direct property tax relief to homeowners .
"It was grueling and, at times, exasperating, exhausting and difficult," said Clark. "We stuck to our principles, the governor stuck to his and, in the end, we worked out compromises that had broad, bipartisan support."that's nonsense. Health care is a perfect example of the DFL coming alot further in Gov. Pawlenty's direction than his coming their direction. when I attended Tarryl's health care forum at Whitney this January, the entire conversation centered on singlepayer. The reform bill that was finally ironed out includes tax credits for uninsured people to buy private insurance. That accounts for 5,000 of the 12,000 new people who will be covered by this year's reforms.
Honest people would readily admit that single-payer and privately purchased health insurance are as similar as black and white. Therefore, the notion that the DFL held to its principles while essentially adopting the GOP's plan is pure spin. Then there's this line:
"Finally, the successful override of the governor's veto of the transportation plan early in the session was a message that a bipartisan coalition could be formed to pass a bill if it was a high enough priority. It made the governor more amenable to compromise than he could have gotten away with before last year."There isn't any doubt that the override was a political defeat for Gov. Pawlenty and the GOP. That said, it was a short-lived defeat. When final week negotations finished, the DFL moved alot closer to the GOP's positions than vice versa. It's worth noting that the Wayward Six quickly returned to voting with the majority shortly after the override vote.
2 percent cost-of-living increase for nursing homesWhich is what the GOP called for LAST YEAR .
Extensive bonding projects for transportation, economic development, higher education, natural resources, and a new veterans' nursing homeThat's the vets' nursing home that Keith Langseth omitted from the original bonding bill. I don't think many people would agree that that's a DFL accomplishment if the voters knew that the DFL opposed that.
Giving voters the opportunity to pass dedicated funding for the outdoors, arts, and the environmentAnother tax increase is an accomplishment? Dedicated funding for "the outdoors, arts, and the environment" is nothing more than budgetting on autopilot. Whatever happened to legislators taking the budget process seriously? I can't for the life of me see the virtue in that measure.
Posted Monday, May 19, 2008 11:34 PM
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