Almanac: At the Capitol

It's the meat and potatoes of politics:  bonding and budgeting.  Today the Senate passed a $365 million bonding bill.  Chair Keith Langseth said it will result in thousands of jobs.  Sen. David Hann said in this economy this isn't the time to borrow more money and raise taxes.  Langseth said you get more bang for your buck in these economic times.  The bill funds construction and renovations on things like:  Bell Museum at U, Volleyball Center in Rochester, high speed rail to Chicago, rail to North Shore, Union Depot transportation hub, Como Zoo, Big Lake ice arena, Orchestra Hall, Shubert Theater, St. Cloud Civic Center, Asian Pacific Cultural Center.

On the budget, House Republicans who the press has dubbed the "Emmerites" (followers of Rep. Emmer) came up with their own budget plan.  They said they balance the budget with no shifts, no gimmicks, no stimulus money and no tax increases.  As Republicans have criticized Democrats, we often ask them where is there budget plan? 

House Democrats sent around a blank sheet of paper last week entitled the Republican budget plan.  Today they have an answer.   The question is if it's a caucus answer or just the often noted splinter group--the Emmerites (has a nice biblical sound to it, huh?).  Reps. Buesgens, Brod, Zellers said you don't have to have a leadership title to lead.  So, it's not a caucus position and it's at odds with the governor because they don't agree with his idea to add money to education.  Now I've heard from these members that they don't like being called Emmerites, sorry, it's just a joke, no offense intended.  That's just the name the press has come up with for the splinter group of vocal House Republicans.  When you don't have your leader's backing and are defying the governor, I guess you get a nickname.

House Tax Chair Ann Lenczewski also came up with what she called the biggest tax reform in a quarter of a century.  It is revenue neutral.  It lowers the bottom two income tax tiers.  Eliminates business subsidies and loopholes, but cuts other business taxes.  She talked about using the deficit as an opportunity to make big changes that makes the tax system more fair and simple.

Pawlenty ready with his budget, Coleman on move to seat Franken, Republicans propose a tax holiday, and a bipartisan coalition calls on the state to divest in Iran.

View the Capitol Update for January 22, 2009.

Republican lawmakers have an idea on how to bring jobs to the state--and it doesn't grow the deficit like the tax breaks Gov. Pawlenty proposed last week.  They want any new job creators to get a 5 year exemption from the 9.8% tax rate.  This doesn't take revenue away from the state because these jobs aren't here anyway.  It is intended to compete with surrounding states that offer lucrative tax incentives to new employers.  GOPers say it won't be a "bait and switch" because they'll try to permanently lower the tax rate if it works. 

The benefit to the state would be obviously the jobs, but other taxes it bring like sales tax and gas tax associated with the jobs.  Rep. Zellers says the governor's staff thought it was a "great idea."  It is not intended to replace Pawlenty's JOBZ tax-free program in greater Minnesota.

This is another chance for Republicans to say they have some ideas, when Dems big idea is to "ready" the state for federal stimulus.  Even though most of the Republican ideas will go no where in the Democratic controlled legislature, it's a PR battle of ideas.

The DFL Legislative leaders set out their priorities for the session, plans for a new "Minnesota Miracle," and a commission reports on ways to improve the state budget.

View the Capitol Update for January 12, 2009.