Political Notebook

Roch mayor says city — not state — should get stimulus dollars

At a listening session this afternoon hosted by First District Congressman Tim Walz, Rochester Mayor Ardell Brede voiced concern about federal stimulus dollars going to the state instead of directly to the city. Brede said he recently attended a meeting of the U.S. Conference of Mayors and there was agreement that those dollars for local project should go straight to the cities, counties and school districts — instead of being divvied out by the state.

"A strong request is that the money come directly to the cities or the counties using the community development block grant model," Brede said. "Sometimes as it comes to the state or others it gets hung up and there are I'll say some handling fees added on."

Walz said he agrees with Brede, but making that happen is unlikely.

"I thought for this stimulus for impact, for accountability and the biggest bang for the buck for our local constituents and taxpayers was to do the model the mayor is asking for. I don't think they are going to do it," Walz said.

The reason? Walz said President Barack Obama's administration wants to make sure there is control over the process so that dollars are spent wisely. But Walz said he believes there is actually more accountability at the local level, where voters can oust officials if they are irresponsible with the dollars.

Pawlenty tells Roch citizens to ask for salary freezes

While speaking to the Rochester Area Chamber of Commerce this afternoon as part of Rochester on Tour at the Capitol, Gov. Tim Pawlenty emplored citizens to demand their cities, counties and school boards impose salary freezes to help eliminate the need for job cuts.

That idea won support from Rochester Superintendent Romain Dallemand, who was among those in the audience. Pawlenty's call came a day after the superintendent recommended an across-the-board salary freeze for Rochester Public Schools -- including freezing his own salary.

Rochesterites on their way

In a little less than an hour, more than 500 Rochester residents are expected to gather outside Galaxy 14 Cine and then board buses headed to the Capitol. It's all part of the annual Rochester on Tour event, where residents show their city pride and lobby for local issues. While other cities have their own days — including Duluth and Bemidji — Rochester boasts the largest event. Of course, Bemidji residents do make a special effort, dressing like Paul Bunyan lumberjacks for the day. Perhaps next year Rochesterites should don scrubs?

The visit comes the day after Gov. Tim Pawlenty announced his budget proposal. His plan includes deep cuts to local government aid and payments to hospitals. It would also mean nearly 85,000 adults would lose health insurance coverage. Pawlenty will likely discuss those tough cuts when he speaks to Rochester on Tour goers at a luncheon today. I'll make sure to update this blog later today on what he said.

A pile of donkey dung?

Senate Transportation Chair Steve Murphy has some big problems with the federal stimulus package working its way through the U.S. House of Representatives. The Red Wing Democrat said it spends far too little on transportation, while funneling money into education and health and human services, which will not generate the jobs needed to jump start the economy.

"That bill that came out of the House of Representatives is a pile of donkey dung. It's not going to do any good," Murphy said. "They've got their priorities bass-ackwards. The majority of that money should be for infrastructure."

But according to a story today in The Washington Post, the proposal is getting a positive review from congressional budget analysts. First District Congressman Tim Walz is expected to come to Rochester on Thursday to discuss the stimulus package.

Budgets and bills

Sorry it has been awhile since the last post. I was on vacation last week, but I am back and ready for a very busy week.

Tomorrow, Gov. Tim Pawlenty is expected to announced his budget proposal at 1 p.m. The Republican governor has already ruled out any tax increases, so expect some major spending cuts. Also expect some sharp criticism from DFL lawmakers.

On Wednesday, Rochester on Tour at the Capitol returns. About 500 Rochesterites are expected to descend on the Capitol, lobbying for the city. Helping lead the charge will be two local sports heroes — former Gophers and Packers football player Darryl Thompson and NHL hockey player Shjon Podein.

Pawlenty pushes biz tax cuts and credits to solve state deficit

In his State of the State address, Republican Gov. Tim Pawlenty urged lawmakers to support business tax cuts and credits with the goal of stimulating the state's sagging economy.

"Minnesota has to come to grips with this fact: In 2009, it costs too much for employers to create and keeps jobs in this state. If we want to build up employment, we have to bring those costs down," Pawlenty said.

He also urged lawmakers not to raise taxes to solve the nearly $5 billion budget deficit.

At a news conference after the address, DFL leaders criticized the governor's proposal saying he is looking at spending more money and reducing state revenue at a time when the state faces a serious budget crisis. Among local lawmakers, the reaction differed along party lines.

Senate Minority Leader Dave Senjem, R-Rochester, praised the speech governor's address "his most inspiring speech in terms of reform and revolution."

He applauded the governor for looking to improve the state's tax climate for business and support Pawlenty's call not to raise taxes.

Rep. Tina Liebling, DFL-Rochester, said while she believes the legislature shares many of the governor's goals when it comes to stimulating the economy, she said cutting business taxes is not the best approach.

"It appears he is sticking to the same old, trickle-down economics," she said. "I think we've had eight years to know that doesn't work and it's gotten us in the situation we're in."

Minn Courts 'stretched to the breaking point'

Minnesota Supreme Court Chief Justice Eric Magnuson will make the case for protecting the state's judicial system from more budget cuts at a news conference slated for 1:30 p.m.at the State Capitol. Magnuson will be joined by representatives of the Coalition to Preserve Minnesota's Justice System.

In a news release, Magnuson is quoting as saying, "Minnesota's justice system is stretched to the breaking point."

The coalition says that a suggested 10 percent budget reduction for the court system over the next two years would have dire consequences. It states that several less-serious cases like shoplifting, trespass and traffic violations may not be able to be heard over the next two years if the cuts go through.

Sharing road salt, bulldozers — but not football teams

Minnesota Gov. Tim Pawlenty, a Republican, and Wisconsin Gov. Jim Doyle, a Democrat, just finished unveiling their plans for a new agreement between the two states. The idea is for the two states to team up and share resources with the goal of helping solve each state's massive budget deficit.

Ideas include sharing road salt, road equipment, helicopters and patrol boats to save money. The plan also features a popular word this legislative session — "consolidation." The two states may look at sharing services for things like licensing, fishery and hatcheries, prison facilities and call centers. It is uncertain whether that may mean some closures of some government operations in Southeast Minnesota.

Both governors signed executive orders directing state agency heads to work together a plan. A report is due to both governors on Feb. 27.

Minn and Wis. govs make big announcement

Minnesota Gov. Tim Pawlenty and Wisconsin Gov. Jim Doyle plan to issue what a news release describes as "a major joint initiative" between the two states. The governors will unveil their plan at 11 a.m. at the Minnesota State Capitol and then host a press conference two and half hours later in Madison, Wis. The news release provides no other details, so stay tuned.

Only the beginning of Minn's budget woes?

A new report released today by the Minnesota Budget Trends Study Commission concludes that the state has a serious structural budget problem. Add together the state's aging population, rising health care costs and state expenditures out pacing inflation and that spells trouble.

Commission co-chairs Kevin Goodno and Jay Kiedrowski agree that to really fix the state's volatile budget situations, changes would have to be made to how taxes are collected. More money would have to come from property taxes instead of sales tax and income tax. But that is not a step the commission is recommending. Goodno said it would be less progressive and unfair

"There really is no easy way to deal with this volatility," he said.

The committee did issue a long list of recommendations, that including changing the way the state's forecasts budgets and improving long-term budget planning.

Well, one thing is for sure. Both men agree that given these problems, solving the state's budget woes is only likely to get harder.