HometownSource.com - ECM Editorial Board

Smooth-talking Minnesota Governor Tim Pawlenty in his budget message makes it sound like a spoonful of fiscal medicine will go down easily to cure a $4.2 billion fiscal budgetary headache.

He stresses the need to realize this is a budget that for the next two fiscal years has an increase of $1 billion in expenditures, and that it's not really a cut in services, it is an increase in expenditures of 6.7 percent. In fact, the governor says the $28 billion represents the biggest plan to spend in the history of the state.

His budget even includes an increase of 2.3 percent and 1.3 percent funding increases for K-12 education.

True to his word it does not include a tax increase, except for fees of services that should pay for themselves anyway.

His budget message will be fairly well received by most families and business who have had to cut back and lay off people. Most who elected Pawlenty will applaud his initiatives to have government live within its means and to reorganize the delivery of government services.

The governor acknowledges that people will feel the pain of budget reductions, even though overall the budget proposes to spend more than this year.

Most people will accept the idea of a wage freeze, particularly those whose wages have been frozen, reduced or who have lost their jobs.

Few will disagree with the idea of capturing $1 billion from the tobacco settlement, preferring that route to increasing their taxes.

So, where's the pain?

The pain, if this budget were adopted, would come in the details.

Students would have to pay at least 15 percent more in tuition fees to attend the University of Minnesota and the Minnesota State Colleges and universities to make up for a cut in budget of $358 million.

Property taxpayers would have to make up the loss of 22 percent ($674 million) in aid to cities, counties, unless the cities and counties reduce services. Local units of government have only the property tax to squeeze for more revenues, and that's where the bleeding will begin. Pawlenty does propose a cap on the property tax levy during the first year and a reverse referendum in 2005. He also proposes a 5 percent limit on the loss of state aid to cities to reduce the pain.

Health and Human Services would get an 8 percent increase, far short of the 20 percent budgeted expenses. . It is estimated $819 million would be cut in the health and human service areas, including $165 million to nursing homes. Who would believe that won't be painful to those in need?

For example the program to provide health coverage for 30,000 poor adults without children would be eliminated. But it's possible those adults' coverage could be shifted to Minnesota CARE where they'd have to pay more for less coverage.

Nursing home rates for patients who can now afford them would be increased.

Governor Pawlenty has issued the challenge: Minnesota, which he says is still a high-tax state, no longer can afford the quality of life all residents now enjoy. What about those who stand to fall through the quality of life screen? Let the debate begin over either the need to maintain services for all people and increase taxes if necessary, or to reduce state services forcing them on to the local units of government who will have to provide the revenues.

The young governor has laid out a case for these difficult times. People who reject his message will have to make an equally documented argument. That's what the legislative process is all about. -- Editor's note: This editorial was a product of the ECM Editorial Board.