| Commission spars with Pawlenty |
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By T.W. Budig ECM Capitol reporter The Legislative Advisory Commission today (Tuesday, June 30) passed a resolution calling Gov. Tim Pawlenty’s pending $2.7 billion state budget unallotment “unwise.” One commission member, Sen. David Tomassoni, DFL-Chisholm, expressed hope someone would file a lawsuit — DFLers argue Pawlenty has overstepped his authority under the state’s unallotment statute — and have a court place an injunction against the unallotment. The process will begin tomorrow. The commission of DFL legislators unanimously passed the resolution after a 90-minute hearing featuring sharp exchanges between commission members and Pawlenty Management and Budget Commissioner Tom Hanson. Also, job loss numbers were examined. Job loss between 3,300-4,700 jobs State Economist Dr. Tom Stinson using methodology applied by Global Insights, which provides state’s budget forecasts, and by making a few assumptions estimated the job loss in the state directly resulting from unallotment totalling between 3,300 and 4,700 jobs. Stinson further estimated indirect job loss at 50 percent. In breakdown of the jobs, Stinson estimated school district job loss as high as 600, state government job loss as high as 1600. Stinson further calculated the job loss that would have resulted from the $1 billion tax increase passed by the DFL-controlled and vetoed by the governor at 1,000 jobs. House Majority Leader Tony Sertich, DFL-Chisholm, said officials may quibble about details but that the governor’s decision to unallot will result a state job losses several times greater the DFL tax increase proposal. But Hanson argued Minnesota’s tax rate has put the state “out of context, out of competition for jobs in the larger term.” Pogemiller, Hanson have sharp exchanges Senate Majority Leader Larry Pogemiller, DFL-Minneapolis, had sharp exchanges with Hanson over the K-12 funding payment shift and size of state budget deficit for the future two-year spending cycle. Included in the governor’s unallotment proposal is a $1.7 billion K-12 funding shift. By using allotment, Pogemiller argued, the only way the school districts will recoup about $1.1 billion of the shift will be for the future legislature and governor to act. “There’s no way to pay back the $1.1 billion,” said Pogemiller. The Pawlenty Administration estimates the state budget deficit for 2012-2013 at more than $4 billion. “It’s absolutely not going to be paid back,” said Pogemiller of the funding shift. House Speaker Margaret Anderson Kelliher, DFL-Minneapolis, as in the past argued that Pawlenty had gone beyond the powers granted to the governor under the state’s unalloment statute. “This has gone way too far,” she said. Lawmakers next session, explained Kelliher, will craft legislation dealing with unallotment. Comments (0)
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