Pawlenty says he'd sign bills, make cuts to balance budget

The governor said that, barring a deal with DFLers, he'll use line-item vetoes and other authority to pull spending bills into line with available revenues.

By MARK BRUNSWICK, Star Tribune
Last update: May 14, 2009 - 6:05 PM

By MARK BRUNSWICK Star Tribune Staff Writer
Turning the heat up to a boil in the closing days of the legislative session, Republican Gov. Tim Pawlenty said today that he would use his powers of line-item veto and unallotment to balance a state budget facing a $4.6 billion deficit.

Pledging there would be no government shutdown or special legislative session, Pawlenty said that every bill sent to him by the DFL-controlled Legislature would be subject to his surgical veto pen, likely beginning with a massive Health and Human Services bill awaiting his signature.

"There is a key principle at stake here. You can't spend more than you have. The DFL-majority just did that," said Pawlenty, flanked by Republican legislators at a Capitol news conference. "In these economic times, the people of Minnesota want to see decisive action. We're going to take action to make sure this session ends on time with a balanced budget."

Pawlenty's move is a high-stakes staredown, but he said he remained willing to work with DFL legislative leaders to resolve the budget before the Legislature is scheduled to adjourn on Monday.

"There is still a good chunk of legislative time between now and Monday at midnight. They've got plenty of time to adjust if they like," Pawlenty said.

The process of unalotting, in which a governor essentially de-funds a program, could have enormous impacts on such things as cities and counties, which depend on state funding called Local Government Aid, as well as subsidized health care programs, which Pawlenty has targeted for reductions.

Those cuts would likely come in July, during the beginning of the budget years.

Pawlenty said his budget for the next two years would likely come in slightly above $31 billion, compared to the current projected budget of $34 billion.

Pawlenty left open what areas would face reductions, but said he would work off the budget bills passed by the DFL-controlled Legislature. DFL leaders had complained that Pawlenty had been inflexible in negotiations. After his announcement, House Speaker Margaret Anderson Kelliher called Pawlenty "Gov. Stand-alone." Pawlenty sent a letter earlier in the week suggesting compromise on several issues, including accepting larger school funding shifts, draining of budget reserves and scaling back a proposal to borrow against future revenues. Pawlenty said his willingness to sign the finance bills reflected "a gesture of significant compromise." Much action can be expected in the final days of the session. The House and Senate could mount an effort to override Pawlenty's veto of a tax bill they passed a week ago. The House needs three Republicans to vote with the DFL-majority to override a veto and Pawlenty said he was confident the House would hold firm. He said he has been talking daily with Republican House caucus members to assure their backing.

Mark Brunswick • 651-222-1636