Political Party

Clock running out on fixing tax reciprocity agreement

A bipartisan group of 21 lawmakers has sent a letter to Wisconsin Gov. Jim Doyle and Minnesota Gov. Tim Pawlenty asking them to restore the tax reciprocity agreement between the two states.

The lawmakers are asking officials to start negotiating both a short-term and long-term fix to the reciprocity dispute. And the clock is ticking. The Minnesota Department of Revenue said a solution has to be in place by early November in order to alert affected taxpayers and employers. Otherwise, the reciprocity agreement will end as of Jan. 1, 2010.

Lawmakers signing the letter include DFL-Winona, Rep. Greg Davids, R-Preston and Rep. Steve Drazkowski, R-Mazeppa, Sen. Sharon Erickson Ropes, DFL-Winona and Sen. Steve Murphy, DFL-Red Wing.

The letter goes on to ask the two states to also look at a long-term fix to the problem. That could include updating a study that calculates reimbursements and potentially revising the interest rate applied to Wisconsin's payments.

The letter states, "We are keenly aware of the difficult budget circumstances facing both states. We believe, however, that this fact makes it even more important to strive for a long-term agreement that will support the working relationship and regional economy  of which we have been so reliant and have benefited from in the past."

Last month, the Minnesota Department of Revenue announced it was scrapping the 41-year-old agreement as of Jan. 1, 2010. At that point, Minnesotans who work in Wisconsin must file and income tax return in both states. That means higher taxes for Minnesota workers. The department estimates that 8,000 Minnesota residents will see a tax increase of $300 year.

Click here to Download Reciprocity Restoration Letter

Taxpayers League scorecard not kind to Roch Democrats

The Taxpayers League of Minnesota has released its annual legislative scorecard. The scores are based on whether or not lawmakers voted for legislation deemed by the organization to be unfriendly to the taxpayer. In many cases, that involves whether or not a lawmaker supported bills with tax increases.

The report card did not have a favorable view of most DFLers — especially in Rochester. On a scale of 0 to 100, with 100 considered a perfect score, no Rochester Democrats received a rating above 13. In southeast Minnesota, the lawmaker with the lowest score was Sen Steve Murphy of Red Wing who netted a 0. 

Rep. Gene Pelowski of Winona was the highest ranking Democrat with a score of 47. That is in large part due to his voting against the DFL tax increase proposals. 

The report heralds Republican Gov. Tim Pawlenty and former House Minority Leader and potential gubernatorial candidate Marty Seifert, R-Marshall, as the "2009 Heroes of the Taxpayers" for standing up against tax increases.

Here is a look at ratings for Southeast Minnesota lawmakers. To look at the Taxpayers League's full list, go here.

Senate

Sharon Erickson Ropes, DFL-Winona — 21

Ann Lynch, DFL-Rochester — 7

Steve Murphy, DFL-Red Wing — 0

David Senjem, R-Rochester — 57

Dan Sparks, DFL-Austin — 14

House

Robin Brown, DFL-rural Austin — 7

Greg Davids, R-Preston — 80

Randy Demmer, R-Hayfield — 80

Steve Drazkowski, R-Wabasha — 87

Tim Kelly, R-Red Wing — 87

Tina Liebling, DFL-Rochester — 13

Kim Norton, DFL-Rochester — 13

Gene Pelowski, DFL-Winona — 47

Jeanne Poppe, DFL-Austin — 27

Andy Welti, DFL-Plainview — 13

A path for total meltdown?

Ask local lawmakers the prospect of a special session and the answer seems to depend on the party.

Preston Republican Rep. Greg Davids said he has no doubt the Legislature is headed in to overtime.

"We are on a path for total meltdown," Davids said.

Meanwhile, Assistant House Majority Leader Andy Welti said last night he is "cautiously optimistic" lawmakers will get their jobs done on time.

But clearly the gap between DFL lawmakers and Gov. Tim Pawlenty remains wide. The Democrats suggested solution for the $4.6 billion budget deficit centers on a new tax increase plan of $1 billion. Provisions of the plan include the following: an income tax hike on married joint filers making more than $250,000 a year, raising the alcohol tax and a charge on credit card companies' interest income.

That revenue would be dedicated to education and health care. Welti said if the governor does not go along with the Democrat's plan, that will require deep cuts to these areas.

"If he is not willing to put revenue on the table, he is going to own these cuts," Welti said.

During a news conference, House Speaker Margaret Anderson Kelliher said the governor's proposed budget would result in 16,000 health care jobs lost and 600 layoffs in education.

The governor has already sent a letter to lawmakers asking them to hurry up the passage of this tax bill today so that he can veto it. So with the governor standing firm that he will not support any tax increases and DFL lawmakers commit ed to tax increases to avoid major cuts, the question remains — how will this budget mess be solved?

Swap school dollars for flood mitigation?

During a House floor debate on a $200 million capital works bill, Preston Rep. Greg Davids made a move geared towards getting more dollars for flood mitigation.

The local Republican proposed an amendment that would have taken funding from four MnSCU projects that vetoed by the governor last year and instead have put that money towards flood mitigation projects. That proposal comes as lawmakers are still discussing the serious aftermath of the recent floods in the Red River Valley.

Rep. Alice Hausman, DFL-St. Paul, argued against the amendment saying the House will likely pass another bill to aid flood victims. But it makes sense for the state to wait to see what federal flood dollars will be available.

Davids amendment won support from Austin Democratic lawmakers, Rep. Jeanne Poppe and Rep. Robin Brown. Austin is among the cities hoping to get some of the nearly $13 million in flood mitigation grants. The Senate public works bill has twice the flood mitigation dollars available.

Ultimately, Davids' amendment failed by a vote of 81-52.