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New survey finds Minnesotans want better return on tax dollars

A new survey released by the Minnesota Chamber of Commerce and Tunheim Partners finds that the majority of respondents do not want state government to raise taxes. According to the survey, 63 percent advocated cutting overall government spending to balance the state budget. But interestingly enough, 6 out of 10 of the respondents also said they would be willing to personally pay more to improve services like K-12 outcomes, long-term care and ensuring Minnesota's infrastructure.

The poll also concludes that Minnesota is a "purple state" with voters evenly divided among Independents, Republicans and Democrats. When it comes to the 2010 gubernatorial election, the poll found that neither Democrats or Republicans have an advantage. It also found that Democratic and Republican legislators have a 59 percent disapproval rating. Meanwhile, Gov. Tim Pawlenty's job approval rating was 49 percent. Half of those surveyed said the next governor should have real-world experience and not be a career politician.

The random telephone survey of 602 respondents was conducted Aug. 4 to 6. All participants were screened to be likely November 2010 voters. The margin of error is plus-minus 4 percentage points. To learn more about the survey, click here.

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

Legislative leaders and governor to meet this morning

With less than 14 hours to go before the Legislature adjourns, legislative leaders are expected to meet with the governor at 10:45 a.m. to see if a deal can be reached to solve the remaining $2.7 billion budget gap. If a deal isn't reached, Republican Gov. Tim Pawlenty has said he will solve the budget deficit himself using his executive authority.

In a phone news conference this morning, DFL leaders ripped the governor for being unwilling to consider any revenue increases. Assistant Senate Majority Leader Tarryl Clark, DFL-St. Cloud, accused the governor of being more concerned about running for president than running the state of Minnesota.

"He has gone national in more than one way. It seems like he is trying to push on to us the Washington ways he has been decrying," Clark said.

Last night, House Democrats tried to win Republican support for an override of the governor's elimination of a health care program for the poor. That effort failed on a strictly partisan vote. Democrats then tried to get Republicans to vote to override the governor's veto of a $1 billion tax proposal. That failed with two Democrats joining Republicans in voting no — Rep. Jeanne Poppe, DFL-Austin, and Rep. Gene Pelowski, DFL-Winona.

This morning, House Health Care and Human Services Chair Tom Huntley, DFL-Duluth, decried Pawlenty's cuts to health care and voiced fears those cuts will be even deeper if a deal is not reached.

"I would say that our health care system in Minnesota is on life support and the governor wants to pull the plug," Huntley said.

But despite these grim predictions, it does not appear that Democrats are willing to back down on their demand to raise revenue. Pawlenty has suggested using a combination of shifts and additional cuts to solve the problem. He dropped a proposal to borrow money based on future tobacco revenues after the plan failed to win support from Democrats and Republicans.

So the question remains — will it be deal or no deal?

Pawlenty makes Democrats another offer

Republican Gov. Tim Pawlenty has made another offer to Democratic leaders. The deal includes a $1.75 billion funding delay for K-12 education, a $450 cut in local government aid to cities, a $250 million cut to health and human services and $190 million cut to higher education. It would also include another $100 million in various reductions.

Lawmakers are meeting right now at a public hearing to discuss the offer. Off the table is a proposal the governor had been pushing for to borrow money based on the state's future tobacco settlement revenues. Pawlenty has said he is opposed to any tax increases. He vetoed a $1 billion proposal by Democrats that would have included raising income taxes on wealthier Minnesotans, boosting the alcohol tax and placing a surcharge on credit card companies' interest income.

Pawlenty has said if lawmakers fail to reach a deadline by the Constitutional deadline of Monday, he will balance the budget himself using his executive authority to cut the budget bills passed by lawmakers.

A $2.7 billion funding gap remains between the DFL's spending bills and the revenue available. On Thursday, the governor vetoed all funding for a health care program for poor Minnesotans called General Assistance Medical Care.

Pawlenty has until midnight tonight to sign and line-item veto the legislature's budget bills.

Wind tax compromise headed to governor

Last night, the House and Senate OK'd a public finance bill filled with several local tax provisions. Among them is provision that would take money away from schools districts with wind turbines and instead give it to townships. Otherwise, beginning July 1 all of that wind tax money for schools would have gone into the state coffers.

The state's wind energy production tax currently divvies up the money as follows: 80 percent to counties, 14 percent to townships and 6 percent to schools. Wind farms pay this tax in lieu of property taxes. But the Minnesota Department of Education and lawmakers backed a law change in 2007 that would strip that money away from schools beginning July 1, 2009.

Getting the wind tax money restored for schools has been a tough sell — especially among metro area lawmakers without wind turbines in their districts. But the winds appeared to be changing this session, with more support for keeping the wind tax local — see this early blog post.

Austin area lawmakers ended up negotiating a compromise with DFL leadership to have the school money go to townships.

Rep. Robin Brown, DFL-Austin, said that while she had hoped to be able to get that money back for schools, she is thrilled that it will at least be staying in the area. She said this compromise makes it less likely the wind tax revenue will get picked off in future years.

"I really think that had it stayed at 6 percent directly to schools, it would have been vulnerable over the years," she said. "I really think that the dollars are probably much safer."

The bill still needs the governor's signature.

Is Pawlenty ready to make a deal?

Republican Gov. Tim Pawlenty sent a letter to lawmakers writing that "in a spirit of compromise" he is willing to consider the following budget fix:
1. Use half the amount of appropriation bonds originally proposed. This borrowing plan would net $500 million and is based on future tobacco appropriations.
2. Agree to the Senate's position and not include $250 million in new money for the state's reserves.
3. Agree to the House's position of a larger, $1.8 billion K-12 education funding shift.

The governor said these proposals would generate $1 billion — the same amount raised through the DFL lawmakers' tax proposal vetoed by Pawlenty this weekend.

In the letter, the governor reiterated his opposition to any tax increases to solve the $4.6 billion budget.

So what do Democrats think of this idea?

"We're certainly heartened that the governor is attempting to look like he is compromising but in reality, we're concerned that he has taken a step in the wrong direction," said Senate Assistant Majority Leader Tarryl Clark. "He has basically given an inch, and we're gone a mile.

So it looks like the budget wrangling will continue.

Rallying for higher taxes

A group called Invest in Minnesota, which include labor unions, nonprofits and faith leaders, plans to rally at the state Capitol today over the lunch hour.

The rally's focus will be urging lawmakers to support "fair tax increases" to help plug the state's $4.6 billion budget deficit. This comes on the heels of Republican Gov. Tim Pawlenty's veto of the DFL leaderships' $1 billion tax proposal. That plan would have boosted income taxes on wealthier Minnesotans, raised the alcohol tax and imposed a surcharge on the interest income of credit card companies.

Pawlenty in a letter to lawmakers about the proposal said the plan would create the fourth highest income tax increase in the nation and comes at a time when the state is facing serious economic challenges.

Democrats have left open the possibility of trying to override the governor's veto of the tax plan. But that will require getting everyone in their party to vote for the plan and luring three Republicans to cross over. So will this sort of a rally convince lawmakers to back such a plan?

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?

Sen. Dave Senjem — an Internet sensation?

That's according to Michael Brodkorb, who heads up Senate Republican communications and writes for conservative blog Minnesota Democrats Exposed. The Rochester senator got fired up at a tax cut rally at the state Capitol on Saturday. You can view the video here.

Here's a few excerpts from his speech on the Capitol steps.

"In that building, there are 133 Democrats ready to tax the socks off you. You don't want that right?"

In response, the crowd yelled "Yeah!"

At one point, the Senate Minority Leader encouraged those in the crowd to get out their billfolds, lift them in the air and repeat after him.

"It's my money and not yours. Government, live within your means. Government, don't raise my taxes."

As a side note, Minnesota Democrats Exposed has another item about a Rochester lawmaker. The site says DFL Sen. Ann Lynch was looking for a Kentucky Derby hat to use this past weekend. Not sure what that's about.

High-speed rail and taxes dominate local political news

There is plenty of political news brewing today. On Sunday, First District DFL Rep. Tim Walz came to Rochester for a high-speed rail roundtable discussion. Joining him was Obama Administration official Mark Yachmetz, associate administrator of railroad development at the Federal Railroad Administration. This marked the Obama Administration's first such meeting in the Midwest since the President announced his plan to spend billions in the coming years on high-speed rail. My colleague, Laura Gossman, covered the event. Here's her story.

House DFLers also unveiled their plans this morning to raise $1.5 billion in taxes. According to The Associated Press, the plan includes an income tax hike for married joint filers making $300,000 or more. It would also boost tax rates on cigarettes and liquor.