What's happening at the Capitol?
Depends upon who you ask.
Legislators will tell you that they are running themselves ragged with a grueling schedule of committee meetings, fact finding tours, and plenty of due diligence.
Knowledgeable insiders will tell you that they are twiddling their thumbs until the February State budget forecast comes out. Because until it does, precious little can be done by legislators once they get done raising their pay and posturing about how much they care about global warming.
One thing I can assure you is that everybody at the Capitol is crossing their fingers and hoping that Fed Chairman Ben Bernanke is right and that the US economy is humming right along, because it is the rare legislator who doesn't have plans to spend a lot more money than will be available. The $2 billion budget surplus everybody is expecting is getting to sound like peanuts to the insiders, and politics watchers are speculating on just how big the proposed tax increases coming out of the Senate will turn out to be.
One thing you can be sure of, though: the property tax relief package that gets passed this year is going to make a mighty small dent in that big bill you always hate to pay. The promises made during the campaign to "do something about high property taxes" is going to be difficult to keep given how much spending is about to take place. So expect at minimum a great deal of "loophole" closing on "deadbeat" businesses; a proposal to increase business property taxes to offset homeowner taxes, and a brewing fight between Democrats in the Senate and House Speaker Kelliher about just how much they can increase taxes without costing the DFL the majority in the House.
The State Legislature is an "unmet needs" creation machine. There will always be more demands on resources than they ever can meet. We just don't know how willing the new Democratic leadership will be to say "no" to all the constituencies that are knocking on their doors asking for more taxpayer dollars.
Mark my words, though: I expect proposals to substantially increase taxes on business (employers) and higher income wage earners. Minnesota will again be entering the "golden age" of being in the top 5 taxing states in the nation.









