Legislature adjourns after final tax vote

Published 9:52 am Tuesday, May 19, 2009

The waiting continues. It’s still unclear how much Local Government Aid will be cut in the next two years.

The Minnesota Legislature’s 2009 session ended at three minutes after midnight early Tuesday after lawmakers spent a raucous final half hour debating a tax bill that Gov. Tim Pawlenty was expected to veto.

The DFL-controlled House passed the bill 82-47 just eight minutes before the mandatory midnight deadline. The Senate, also controlled by Democrats, voted 35-1 to approve the measure before adjourning a few minutes late. Republicans objected loudly to the rushed votes.

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“I really just was handed a copy,” said Sen. Michelle Fischbach, R-Paynesville. “There’s only a few minutes left.”

Down the hall, Democratic House Speaker Margaret Anderson Kelliher presided sternly over yells of protest from Republicans who tried to slow things down.

The bill would close a $2.7 billion budget gap by delaying payments to schools and increasing taxes on couples who make more than $250,000 a year, alcohol drinkers and some credit card companies. It was similar to the bill Pawlenty vetoed days ago.

Pawlenty spokesman Brian McClung said the governor planned to veto the latest version, and Pawlenty has vowed not to call a special session to complete budget work. Instead, he is preparing to unilaterally erase a multibillion-dollar deficit using emergency power to cancel spending and delay payments beginning July 1.

McClung said Pawlenty planned to meet Tuesday with his advisers to begin the process, called unallotment.

Democrats held out hope that Pawlenty would change his mind about the tax bill. With it, they said their budget was balanced, though it won’t be if Pawlenty rejects the taxes.

“It’s the governor’s choice now,” said Kelliher, DFL-Minneapolis.

Earlier in the day, a last meeting between top DFLers and Pawlenty yielded no agreement. Top Democrats said the GOP governor rejected every possible tax increase they put before him. They ruled out a $1 billion borrowing plan he proposed, using future tobacco lawsuit settlement payments as collateral.

The shortfall is $4.6 billion over two years, or $6.4 billion not counting federal stimulus dollars. The Democratic-controlled Legislature failed in a push to override two vetoes on Sunday, including a $1 billion tax plan.

The lack of resolution could lead to higher property taxes if cities and counties lose state aid, budget acrobatics for schools if state payments come later, and an uncertain future for those who use state programs for everything from hospital stays to dental coverage.

Under a plan the governor proposed months ago, Austin would lose $579,374 in LGA for 2009 and $1,209,834 in 2010.

The city was originally set to get $7,766,163 of LGA in 2009.

Known as part of the Minnesota Miracle established in the 1970s, LGA helps balance the economic disparities across the state.

Places like Austin depend on these funds (it’s 54 percent of the city’s operating budget) and when LGA gets cut at the state level, the effects trickle down locally.

State Rep. Jeanne Poppe (DFL-District 27B) has said the governor’s LGA cuts proposal is too steep.

“I think it’s definitely too severe,” Poppe said. “…That then of course puts the pressure on local cities, schools and counties.”

The governor has said local governments need to prepare for cuts because it’s not a matter of if, but a matter of when.

“The question isn’t if there will be cuts, it’s what’s going to be real and fair under these circumstances,” she said.

While the budget talks bogged down, several policy bills steamed ahead.

Legislation for medical use of marijuana cleared the Minnesota House 70-64, after it was tightened to apply only to terminally ill patients with severe symptoms. That’s stricter than the version that cleared the Senate, which accepted the change and repassed the bill 38-28.

Pawlenty has opposed the legislation, saying he agrees with law enforcement concerns about expanded drug use.

After years of stalling in the House, legislation giving police more power to ticket unbuckled motorists is cruising toward passage.

The House passed the so-called primary seat belt law on Monday 73-60. The measure has long fared better in the Senate, and Pawlenty has voiced his support. The Senate later approved the bill 47-19, sending it to the governor.

The bill gives police the ability to pull over and ticket motorists solely because they or their passengers aren’t buckled up. Currently, law enforcement must spot another traffic offense to make the stop.

An elections bill would move the state’s primary elections from September to early August, which proponents say should give more time for voters to compare their general election choices and return absentee ballots if they live overseas.

An attempt to allow no-excuse early voting was removed from the bill, but there were other absentee ballot law changes crafted in response to the state’s lengthy 2008 Senate race. Local election officials would have to make extra efforts to contact voters whose ballots are rejected and give them the option of casting a new one.

The Senate passed it 44-20; the House vote was 85-49.

Pawlenty hasn’t said what he’ll do with the bill; his fellow Republicans wanted a requirement that voters show photo identification at the polls.

But Rep. Ryan Winkler, DFL-Golden Valley, said the changes are too important to put off.

“If we wait to do it next year, most of the changes won’t go into effect in the 2010 election,” he said.

Both houses passed a bill dividing up sales tax money for habitat, water and cultural projects.