2002-04-24 CC Packet (2) - Laserfiche WebLink

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~ of M;nnes0f4 Cm.. em.. pnmwting --"-- ities lIe tin Number 13 April 17, 2002 Session slows Gary Carlson and Jennifer O'Rourke On the heels of the 2001 $ession that many Capitol insiders called the sttangest session in memory, the 2002 session is evolving into another year of curious twists and turns. Despite bipartisan agreement earlier in the session to address nearly $2 billion of the state's deficit and a subsequent bipartisan override of the governor's veto, the House and Senate cannot agree on a furmnla to address the """,;n;ng $439 million deficit. Much of the disagreement appears to be focused over whether the Legislature should begin to address the 2004-05 projected deficit by raising taxes. On Monday, House Speaker Steve Sviggum publicly suggested the session might end without a resolution to the remaining 2002-03 biennial deficit. Sviggum's announcement that a growing number of House members are leaning toward a<ljournment was a continuation oflast week's unrest. At the end of the floor session on Thursday, Rep. Len Biernat (DFL-Minneapolis) ofrered a motion to adjourn sine die. Several members fiom both parties opposed the motion, essentially agreeing that adjournment would be shiIking their legislative responsibility. Rep. Mike Osskopp (R-Lake City) went as fur as suggesting that members who would rather leave than finish the people's work should resign their seats. In the end, Biernat withdrew his motion. Although the motion was with- drawn, House Majority Leader Tim Pawlenty indicated that ifprogress is not forthcoming, the House majority might take "significant action" as early as this week. It now appears the sig- nificant action might be a motion to adjourn that could receive sufficient support from the House majority. Ending the session without a legislative solution to the state's budget would throw the responsibility of balancing the budget to the governor. The governor could either call a special session in an attempt to furce law- makers to address the budget deficit or he could exercise his unallotment authority where he could Irulke cuts in state spending, including state aids to cities. Last week's /JaIJy steps Last Thursday evening, the Budget Reconciliation Conference Commit- tee considered an offer fiom the Senate that would cover the remaining $439 million state budget deficit for the current biennium and would begin to address the 2004-05 projected biennial shortfall. Friday morning, the House responded with its version of a compromise. House Chair Kevin Goodno described the Senate proposal as "baby steps;' while Sen. Doug Johnson said the House proposal was "mosquito steps." Last week's Senate offer included $245 million in one-time savings by refinancing transportation projects originally financed in 2000.The other major components include a one-time shift of school aid payments that will save more than $310 million this biennium, and the controversial increase in the cigarette and tobacco taxes that would generate an additional $313 mil- lion in revenue this biennium and more than $453 million in 2004-05. Although House members seemed somewhat pleased that an offer was made, they clearly have stroug concerns about the content of the Senate offer. In addition to their concerns over the tax increases in the offer, House members questioned the Senate move to restore some of the spending teductions contained in the Phase I plan. The House counteroffer unveiled on Friday morning solves the current biennial shortfulllargely through the use of$347 million of the state's tobacco endowment. The plan also saves $46 million in health and human services funding, $17 million in state government cuts, and $10 million fiom cuts in environment and natural resources programs. Senate members reacted on Friday by cb;m;ng the House offer represented very little movement Ctmtinued 011 page 3