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May 7, 2009 8:06 pm US/Central
Minn. Lawmakers Will Fly Past Own Budget Deadline
ST. PAUL (AP) ―
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House leaders say openly that they were likely to blow by their midnight Thursday deadline for readying all budget bills for final votes.
CBS
Lacking agreement on items as large as classroom spending and as small as court document filing fees, Minnesota lawmakers resigned themselves Thursday to missing a self-imposed deadline for finalizing budget bills.
Most elements of a two-year, $33 billion state budget remained in flux amid negotiations between the Democratic-controlled Legislature and Gov. Tim Pawlenty.
Recognizing that, legislators lifted a midnight deadline for getting the budget ready for floor votes -- a delay that foreshadows another sprint to the finish.
They also prepared a backup plan that would directly link a share of the spending on education and health care programs to tax increases, although the hikes are likely to be smaller than those proposed so far.
The Senate passed the bill 43-23, with three Democrats voting no and a House vote expected to follow. An attempt to add a provision authorizing video slot machines in bars failed overwhelmingly.
Senate Majority Leader Larry Pogemiller, DFL-Minneapolis, said the alternative bill is an attempt to break the problem into smaller chunks. It would also starkly lay out the choice before lawmakers.
"You can't have a balanced budget without some additional revenue. You just can't get there," Pogemiller said.
Pawlenty said it's not just taxes where no compromise has happened, but also spending on health and welfare programs where Democrats don't want to bend. Still, he said final bills are close on agriculture and veterans programs and public safety initiatives, and differences aren't that large on packages for K-12 schools and higher education.
"If they want to, those bills are all within striking distance, but they've got to be willing to come to agreement," he said.
He added: "They set their own deadlines. Nobody forced them on them. They had months to plan, they had months to think about it, and they're going to miss their own deadlines."
The session must close by May 18, although a special session is a possibility. The hardest deadline is June 30, when the government's spending authority expires.
The task is complicated by a budget deficit estimated at $4.6 billion, a hole that would be deeper if not for federal stimulus dollars.
Three smaller budget bills are on Pawlenty's desk. His signature is expected on two, covering transportation, the State Patrol and natural resource programs. The third, a package including business grants and tourism promotion, faces a potential veto because it forgives $33 million on the loan for St. Paul's Xcel Energy Center.
House Majority Leader Tony Sertich, DFL-Chisholm, downplayed the blown deadline. He said top legislators were more interested in getting bills acceptable to all sides than risking vetoes on rushed legislation.
"It's more important to take your time to get it done right the first time," he said.
Rep. Torrey Westrom, R-Elbow Lake, countered that one of the stickiest points of dispute -- whether to raise taxes -- was unlikely to change no matter what the calendar reads.
"That's a show-stopper whether it's April 1 or May 18," he said.
Republicans are greatly outnumbered in the Legislature, but they have enough strength to uphold Pawlenty vetoes if they stick together. The governor has promised to block any tax increase.
The budget proposals from Pawlenty, the Senate and the House all impose significant spending cuts to most areas of government. Pawlenty takes a harder whack at health and welfare services while the legislative plans target spending to run state agencies, from the state Corrections Department to the Agriculture Department.
And all three plans rely on new revenue. Pawlenty seeks to raise $1 billion by borrowing against proceeds of tobacco payments. The House endorsed a plan to bring in $1.5 billion more by increasing taxes on alcohol, cigarettes, high-end income earners and other areas. The Senate's $2.2 billion in tax increases would hit most Minnesotans.
"These decisions don't get any easier the closer we get to end of session," Sertich said. "If we all just maybe pretended that this was the last weekend maybe we could get our work done. I'm of that opinion, and I think we have plenty of time to get our work done."
The backup bill would include tax increases that have polled well among the public, said Senate Tax Chairman Tom Bakk of Cook. He wouldn't give specifics but didn't rule out higher taxes on alcohol and top earners.
Republicans didn't hide their disappointment and suspicions. "There is something smelly here and I don't like what's going on," said Sen. Warren Limmer, of Maple Grove
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On Tuesday, the Minnesota House spent a fractious hour debating warning signs where cocoa mulch is sold, alerting dog owners of potential hazards.
(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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