A couple hours with speaker, senators, reps

This is the time of year when I get requests to meet with lots of legislative leaders, and I spent a couple of hours in the last two days listening to two likely candidates for governor as well as local senators and representatives in the Minnesota House.

I am always impressed with the sincerity and knowledge of these public servants whatever their political stripe. These meetings are useful for someone like me whose job it is to be informed and write opinions on the activities of government.

In one meeting, I met with Speaker of the House Margaret Anderson Kelliher, Rep. Kathy Brynaert and Rep. Terry Morrow, who also is an assistant majority leader.

Earlier meeting included Senate Tax Committee Chairman Sen. Tom Bakk, Sen. Kathy Sheran and Rep. Kathy Brynaert.

These meetings usually focus on a review of the session, but this year the hot topic is what didn't pass and the pending unallotments.

Here are a few phrases and points that stuck with me from the conversations.

From Speaker Margaret Anderson Kelliher "We're not even on a budget roller coaster. We're on a budget Tilt A Whirl."

A roller coaster goes up and down, a tilt a whirl spins you so you don't know where you will end up.

Other information that surprised me.

The higher income tax Dems were proposing would have cost family making over $300,000 just $109 per year. Renter credit that Pawlenty will unallot, costs renters $156 per year.

House research showed 2.3 percent of households in Minn. would have to pay the $109, and 5.7 percent of the 2.3 percent were small businesses. Speaker rejects "job killer" label Repubs gave the tax increase. No one had real evidence of this one way or another, but speaker says Minn. law gives tax breaks to higher income people for creating jobs.

Unallotments will hit rural Minnesota harder than metro Minnesota. Lots of General Assistance Medical Care (GAMC) cases are in outstate Minnesota. That program is gone by Pawlenty veto. MinnesotaCare is also popular in outstate Minnesota with a lot of small business employees on it. They will be pushed off by law if General Assistance people apply

GAMC cases are mentally ill people, chemically dependent, including many veterans. To get on MinnesotaCare, they will have to wait four months. Gov. says they can get on MinnCare. Dems say most are not that together to apply and get in, and can't wait four months for their meds.

Liquor tax Dems proposed would have cost 5 cents a drink, 3 cents on a beer, more if you drink the fancy stuff.

Even Gov. Pawlenty knew budget problem needed revenue. He proposed $1 billion in borrowing. Speaker would not go for it, said borrowing for operating expenses would set a new precedent open the door for fiscal irresponsibility. She backs it up with House vote on borrowing 130-2 against it.

Kelliher says she is "seriously considering" run for governor. Her leadership of a diverse caucus, rural/outstate makes a big difference. She grew up around Mankato, has family farm here, lives in metro but doesn't consider herself "metro-centric."

Bakk talk.

From Sen. Tom Bakk, Senate Tax Committee chairman, union carpenter, Iron Range legislator who has announced run for governor.

Bakk was asked by governor to try to help break deadlock. He offered tax break plan for small business giving "Angel investors" a tax break. He told Pawlenty he could argue that tax increase on high earners would be made "revenue neutral" by Angel investor tax break.

Bakk said Pawlenty said he got beat up so bad when he agreed to "health impact fee" a few years ago, he was done trying to make such arguments.

Another surprise: Bakk is telling school districts not to short-term borrow. They shouldn't count on school funding backfilling via shifting school funding as part of budget solution.

His direct quote: the delayed education payment "is a cut"

Our revenue problem snapshot: Corporate taxes usually bring Minnesota $1.2 billion a year. They're bringing in $600 million, about half of normal

From Sen. Kathy Sheran.
The Senate compromised its position to no school funding shift and agreed to the shift the governor proposed. Her question for the governor. "Where did he move (compromise)."

Bakk says he is running for governor because he is an electable Democrat, likeable person. He's moderate and tries to work with the other side of aisle. Says last Democrat to get elected did so because he was likable - former Gov. Rudy Perpich, also an Iron Ranger.