The use of unallotment looms. DFLers say it's an abuse of power. The governor says it's a duty.
By PAT DOYLE and BOB VON STERNBERG, Star Tribune staff writers
Last update: May 19, 2009 - 9:57 PM
As DFLers toured the state to blame Gov. Tim Pawlenty for the legislative session's budget breakdown, Pawlenty on Tuesday defended his decision to unilaterally cut state spending and downplayed its impact on health, welfare and education.
"The sky isn't going to fall," Pawlenty declared at a noon news conference. "We can get through this."
Pawlenty insisted he made real compromises during the legislative session, but now must use special gubernatorial power -- called unallotment -- to singlehandedly reduce spending and balance the upcoming budget.
DFLers said Pawlenty's threatened use of the tool in the final days of the session was an abuse of power and questioned whether it would withstand a court challenge, should one be filed.
"I believe that this is an abuse of what is supposed to be an emergency power," said Sen. Tarryl Clark, DFL-St. Cloud, assistant majority leader.
Rep. Ryan Winkler, DFL-Golden Valley, noted that state law said unallotment is supposed to be used when the finance commissioner determines that revenue "will be less than anticipated." Instead, he said, the state had expected a revenue shortfall for months.
"I think there is a real question whether the unallotment statute can be pushed that far," Winkler said, accusing Pawlenty of using the tool late "to create a budget on his own."
Winkler said he was "certain" that school districts, hospitals and nursing homes facing state cuts would consider challenging the governor's use of unallotment.
Pawlenty said an economic downturn of historic proportions demands that state government "tighten our belt and live on a little less money." He said his office has set up an e-mail address where Minnesotans can make budget-cutting suggestions: budgetideas@state.mn.us.
He reiterated his opposition to DFL proposals to raise taxes on the wealthy, liquor and credit card companies to help close the budget gap, saying, "It is not wise to raise taxes in the worst recession in 60 years."
But DFLers took the offensive in what promises to be a war over public opinion on who is responsible for the remaining $2.7 billion state budget shortfall in the two years beginning July 1.
DFL legislative leaders took off from St. Paul Downtown Airport at 8 a.m. on a fly-around of the state to give their side of the session that staggered to an acrimonious close at midnight Monday.
"We had a chance to bring back long-term stability to the budget the way Minnesotans wanted us to," said Senate Majority Leader Larry Pogemiller, DFL-Minneapolis, in a prepared statement. "We took an approach of shared sacrifice and used a mix of cuts and revenue, and Minnesotans can clearly see the Legislature did its job. The governor refused to work with us and instead of offering compromises he issued ultimatums."
Entire budget to be examined
Pawlenty defended his plan to use unallotment, saying the law says the governor "shall" make cuts when receipts fall behind proposed spending. "I think we're on firm legal ground," he said.
"It's not an option -- it's a duty," Pawlenty said. "That job didn't get finished. I'm going to finish it."
While avoiding many specifics, Pawlenty sought to minimize the impact of what he called the "trimming" that he's expected to make. The overall spending reduction, he said, amounted to less than 4 percent.
He said a reduction in higher education spending would be "significantly less than 5 percent." He had earlier proposed a $190 million cut, but he said the final number is likely to be less than that.
Pawlenty repeated a desire to cut back on state aid to local government -- his administration had talked about a roughly half-billion-dollar reduction.
Such reductions could translate to higher property taxes if cities and counties lose state aid.
Pawlenty said he would try to hold elementary and secondary education spending steady.
"All of state government is going to be looked at," Pawlenty said. He had earlier acted to cut back state subsidized medical care for the poor.
The governor echoed a concern of some conservatives that people from other states are coming to Minnesota to receive its welfare benefits.
"They're coming because we have one of the most generous welfare systems in the country," he said. "That can probably be trimmed back."
Dueling verdicts
Pawlenty promised that an unallotment plan would be developed in time for the beginning of the new biennium on July 1.
The governor accepted a $1.7 billion shift in funding for schools to make up a portion of the deficit, but rejected the $1 billion in tax increases proposed by the DFL.
DFLers said the GOP governor rejected every possible tax increase they proposed. The DFL, in turn, ruled out a $1 billion borrowing plan Pawlenty proposed, which would have used future tobacco lawsuit settlement payments as collateral.
Within moments of the legislature's adjournment, dueling assessments were offered up by interest groups.
The conservative Taxpayers League of Minnesota issued a statement that said, in part, "We applaud Governor Pawlenty's leadership rather than listening to more whining from the Democrats whose only solution has been to raise taxes on every working Minnesotan. Even with their billion dollar tax proposal that they passed last week, House and Senate DFL leadership are still two billion dollars short of solving the budget deficit."
Countered Minnesota 2020, a liberal group, "The governor's decision to end budget negotiations and slash vital programs including hospitals, health care and local government aid hurts our state and the people who live here.
The governor's actions have terrible consequences for Minnesotans. ... His unilateral cuts will harm our state and the people who live here for years to come."
DFLers and Pawlenty agreed on one point: They said there would be no special session or government shutdown.
The Associated Press contributed to this report. Pat Doyle • 651-222-1210
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