by T.W. Budig
ECM Capitol reporter

Debate over a proposed constitutional amendment limiting state spending will be heard again.

The Senate Tax Committee today (Monday, Dec. 7) heard the proposed amendment, championed by Gov. Tim Pawlenty and authored in the Senate by Sen. Amy Koch, R-Buffalo, with Tax Committee Chairman Tom Bakk, DFL-Cook, indicating the committee wanted to learn more.

City of Ramsey resident Lisha Poulakis, wearing a green American Federation of State, County and Municipal Employee (AFSCME) shirt and daughter at side, appeared before the Senate Tax Committee today (Monday, Dec. 7) to testify against a proposed constitutional amendment that if passed by voters would limit state spending. (Photo by T.W. Budig, ECM Capitol Reporter)

 

“Let’s all admit it. We have some big challenges,” said Bakk of the state budget picture.

The proposed amendment, if approved by voters, would restrict lawmakers from spending more on an upcoming biennium than the amount of the revenue brought in during the previous, two-year spending cycle.

“In the overall scheme of things, this is not draconian,” said Pawlenty at a press conference earlier this month.

Proposed legislation draws supporters

The proposed legislation, which drew Republicans and amendment supporters to the Capitol Rotunda for a rally prior to the hearing, attracted both supporters and detractors to the tax committee.

Koch argued the amendment would bring an evenness to state budgeting without being excessively restrictive. “That’s why I like it,” she said of the proposal, which would allow for tax increases and also emergency spending. (Photo by T.W. Budig, ECM Capitol Reporter)

But Bakk, as others, argued the amendment would “reduce flexibility” and otherwise prevent reforms by tying lawmakers’ hands.

He criticized the amendment, if enacted, of possibly ushering in an era of special accounts — creative bookkeeping — as lawmakers and the governor wiggled in exploring ways of getting around the spending restriction.

Government association officials indicated their opposition.

Called simplistic response

Ramsey Council Commissioner Jim McDonough, representing the Association of Minnesota Counties, called the proposal a “simplistic response” to a complicated issue.

A League of Minnesota Cities official also expressed similar concerns.

Dane Smith, Growth and Justice president, argued that although supporters of the legislation may beckon back to a perceived “fiscal Eden” of the early 1960s, they fail to take into account the state’s population growth and other factors in analyzing the growth of state government.

Indeed, Bakk, speaking on the question of income tax rates, said Minnesotans have lower rates than a decade ago. “We all know this is true,” Bakk told the committee.

Joshua Culling, of the National Taxpayers Union, agreed that Minnesota taxes have decreased but still remain high.

Phil Krinkie, Taxpayers League of Minnesota president, argued lawmakers always struggle with containing spending — it’s much easy to spend, said the former lawmaker.

“I applaud your willingness to look at this (amendment) issue,” Krinkie told the committee.

Not an end-all solution

“It’s not an end-all, be-all solution,” said Koch. But it’s part of the budget solution, she argued.

Senate Tax Committee Chairman Tom Bakk, DFL-Cook, questioned the proposed legislation but also indicated his committee would again hear the bill once it's in its final form. (Photo by T.W. Budig, ECM Capitol Reporter)

But City of Ramsey resident Lisha Poulakis, wearing a green American Federation of State, County and Municipal Employee (AFSCME) shirt with her daughter at her side, told the committee of budget cuts within the Anoka-Hennepin School District that had her daughter walking longer to school and of escalating property taxes.

“Nobody ever gained everything by cutting everything,” she argued.

Wealthier Minnesotans need to shoulder their fair share of the tax burden, she argued.

But Bakk countered that looking to the wealthy to bail out the state would not work. There’s not enough wealthy people to do it, he argued.

< Prev		Next >