Almanac: At the Capitol

Gov. Pawlenty announced his budget cuts to solve the current $400 million budet shortfall today.  Local government aid takes the single biggest hit at $100 million.  City leaders say some cuts will be drastic and could affect police and fire departments. It's not going to be a very merry Christmas for many.  Lawmakers don't seem too outraged only the speaker is having a press event at the Capitol.  I guess they feel better having him rather than them making the cuts.

With so many hurting I'm surprised companies and some publicly funded entities are still sending out Christmas cards.  I'm not going to name any names, but here's the stack of cards in my mailbox today (I'm sure I'm off their Christmas lists now).  I don't mean to be a Scrooge here, but it's not good PR to send out corporate holiday cards, especially to a reporter during a massive economic downturn.

And with so much chatter about Mickey Mouse ballots at the Capitol this week, I should fess up that I haven't been blogging much this week because I was visiting Mickey myself with my family.  It was my birthday this week. Even reporters need a break from the recount.  And interestingly enough, Disney appears pretty recession-proof, it was packed.

At the annual AP press briefing Gov. Pawlenty announced a state hiring and salary freeze--and he expects the same from cities, counties and school districts. If they don't it the governor said it will be "noticed." Pawlenty again vowed significant and dramatic changes to taxes, education and health and human services in light of the large budget deficit. He said there is going to be a "real impact on people." And that non-tax revenue the governor had mentioned is not fees but maybe privatizing thing like the lottery or airport. When asked about his level of engagement and national aspirations he said "this is a major crisis for the state" but didn't directly deny national ambitions. He joked some cuts could include space for the Capitol Press Corps which we do pay for.

Legislative leaders then told the press they expect swift action on the current shortfall before session starts in January. They hope to work out a compromise on unallotment with the governor.  Taxes is where they expect to differ although Democrats aren't talking specific tax increases yet, but Speaker Anderson Kelliher said to "take away a tray in the toolbox would be shortsighted." Seifert and Pogemiller got into a testy exchange when the GOP leader questioned arts spending on a film about clowns, puppet shows and documentary about "bitter and crabby" people.  Poge shot back to look for this as a "fracture point" as some try to "steal" arts and environment money set aside by the passage of the new constitutional amendment. The DFL leader then said to Seifert "I'd encourage him to lighten the rhetoric."  Still no love lost between those two.

In Philadelphia, President-elect Barack Obama met with governors like Louisiana Gov. Bobby Jindal (who got in the photo that's on Finance and Commerce's site and not our Gov. Tim Pawlenty also often-mentioned with Jindal as a presidential contender). 

In a conference call with reporters afterwards Pawlenty said he was "thankful and grateful" for Obama coming to the National Governor's Association meeting which Pawlenty said is unprecedented for an incoming president.  The governor said Obama was "very gracious" and talked with the governors for about an hour.  Pawlenty was particularly pleased with Obama's closing remarks that this "isn't goodbye, but hello."  

The Minnesota governor got some one-on-one time with Obama “off to the side” where they talked about renewable energy.  Pawlenty said the President-elect was “aware of Minnesota’s commitment” in this area. Pawlenty said as Obama left the meeting the governor indicated to the new president his interest in "moving the nation ahead" on more renewable energy.

Looking towards Thursday’s state budget forecast, Pawlenty said he didn’t know the number but it’s obvious Minnesota, along with other states, is facing a “major financial problem.”  The governor said on Thursday he’ll announce “some immediate plans and actions” in regard to a state deficit.  He also said he expects the cushion that was built up with higher revenue in recent months has been "burned through" and he expects a "noteworthy deficit" in the current budget cycle that ends in June. 

In terms of federal help Pawlenty said “I have not asked Obama for more money” and reiterated he does “not support an across the board bailout.”

Gov. Tim Pawlenty unveiled his "Green Jobs Investment Initiative" which has an overall price tag of $86 million over many years and would create a "significant number of jobs" without naming a specific number.  It expands the tax-free JOBZ zones for green jobs and has other tax credits and investments.  In light of his new national position and the fact some conservative Republicans have been skeptical of his environmental positions he stood by going green and said there are "no worries of being too green or environmentally sensitive."  He thinks the legislature which is DFL-controlled will view the package favorably because the jobs are "clean and green" and "we're in a recession."  Urban Dems have taken aim at the gov's tax free zones in the greater Minnesota and nearly axed it last session.  Pawlenty didn't steer too hard left as he still adhered to his belief that business taxes are too high in the state saying "if it were up to me we would make the whole state more like a JOBZ zone."     

The governor also sounded off about the swinging U.S. Senate tallies and referenced "concerning repots of someone driving around with 30-40 ballots in their car."  He asked emphatically "How does that happen?"  Pawlenty reminded us that Minnesota has a proud election tradition being one of the leading states and believes "the process is not flawed on its face."  He said his lawyers have been looking into a gubernatorial role in a recount and it generally doesn't seem he can play a major role as the controversy continues.

Back to the Green Jobs thing, Rep. Tim Mahoney, chair of the Committee of Biosciences & Emerging Technologies, stopped by the press offices and said there was not enough detail, but lawmakers look forward to working with the governor.  Mahoney said "we all like green, but it seem like the governor is focused on how we cut taxes."  The DFL lawmaker wondered "why throw in one of the most contentious issues" by including JOBZ.  He thinks that hurts the plan rather than create DFL converts to the concept.