Thursday, 9th September 2010

Legislative leaders, governor react to February forecast

Posted on 02. Mar, 2010 by Session Daily | Public Information Services in State Legislature

DFL and Republican legislative leaders offered conflicting interpretations of the February budget forecast — and conflicting ideas on how to solve the budget problems it predicts.

Though the forecast projects a $1 billion budget deficit in the current biennium — a $209 million improvement over the November forecast — DFLers noted that the $5.8 billion deficit predicted in the 2012-13 biennium is actually $363 million worse than previously thought. They cited it as evidence that Gov. Tim Pawlenty’s budget-balancing plan is inadequate.

“This forecast once again shows us that we have a long-term problem in this state,” said House Speaker Margaret Anderson Kelliher (DFL-Mpls).

Kelliher and other DFL leaders criticized the governor’s supplemental budget plan for failing to solve that long-term problem — Pawlenty’s plan would only bring the 2012-13 deficit down to between $2 billion and $3 billion— and also for relying too much on federal assistance in the short term. They advocate a more balanced approach that could include both budget cuts and tax increases.

Meanwhile, Pawlenty and Republican leaders said the $209 million drop in the current biennial deficit was good news, and said out-of-control state spending was to blame for the deficit.

“We have a spending problem, not a revenue problem,” said House Minority Leader Kurt Zellers (R-Maple Grove), adding that government should “do like a lot of families across the state” and learn to live within its means.

Pawlenty said his budget plan would make the 2012-13 deficit “manageable,” and beyond that the state needed to reform government programs in a way that curbs future spending increases.

“This is a spending escalator that must be shut off,” he said.

Pawlenty called on DFL leaders to submit their own budget-balancing plan by March 17. He criticized a plan announced bySenate Majority Leader Larry Pogemiller (DFL-Mpls) to balance the budget in pieces, using multiple bills.

“It’s another way of saying, ‘We don’t want to do the hard stuff until the very end,’” Pawlenty said.

by Nick Busse | Session Daily
video | Watch the Republican reactionWatch the DFL reactionWatch the governor’s reaction
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