It only took Governor Mark Dayton two hours to reject the first
bill to reach his desk, vetoing the Republican majority's
first attempt at budget-cutting. House File 130, passed by the
House and Senate on party-line votes, would have cut more than $901
million in state spending and extended the cuts made during last
year's special session. Dayton's action underscores
why many expect this session to be as challenging as any we have
witnessed in recent years.
The budget legislation would have made close to $600 million in
cuts to various tax aids and credits, primarily to city and county
aid and the renter's credit, $185 million in cuts to higher
education, and $47.5 million to health and human services programs.
In addition, the bill required that Governor Dayton cut $100
million in unencumbered state spending before June 30. The bill did
not identify where those cuts should be made.
In his veto message, Dayton criticized the approach taken by the
Republican leadership. According to estimates by the Department of
Revenue, the bill would have raised property taxes by $428 million
in the next biennium. According to the veto letter delivered by the
governor, "[i]t would be a terrible mistake to target tax
increases on the middle-class, on seniors, on lower-income renters,
and on small businesses, while largely protecting the wealthiest
Minnesotans from paying a fairer share of taxes."
Dayton was also clearly frustrated with the Republican's
efforts to require him to make additional budget cuts. "[Y]ou
would abdicate your responsibility to make those difficult spending
choices and your power to determine those cuts to an appointed
official of the Executive Department. That is both inappropriate
and unconstitutional," wrote Dayton. Finally, Dayton said that
a "piecemeal approach" to addressing the state's
budget issues was inappropriate, calling for a comprehensive
solution that considers all options and allows for public
input.
Republican leadership quickly responded to the veto. From House
Speaker Kurt Zellers, R-Maple Grove: "Every governor gets his
first veto letter, and his first good kick in the shins."
Zellers and Senate Majority Leader Amy Koch, R-Buffalo, said they
were "disappointed" to see the veto. They said they
offered the budget-reduction bill before the February forecast in
good faith. Koch said she is hopeful that this is not a sign of how
the debate will go throughout the session.
In the wake of Governor Dayton's veto, the House also
passed a resolution establishing legislative deadlines for 2011.
There is no yearly deadline for the introduction of bills. However,
each year the legislature establishes deadlines for committee
action on bills. Generally, the first deadline is for committees to
act favorably on policy bills in the house of origin. The second
deadline is for committees to act favorably on bills, or companion
bills, that met the first deadline in the other house. The third
deadline is for divisions of the House and Senate Committees on
Finance to act favorably on omnibus appropriation bills.
This year, however, the Republican leadership has changed the
playing field. Reflecting their commitment to addressing the
state's budget shortfall quickly and before policy issues
are addressed, the following committee deadlines were set:
- March 25, all finance bills must be out of their committees and sent to the House Ways and Means Committee for review;
- April 29, the first deadline for policy bills; and
- May 6, the second deadline for policy bills.
Requiring that all finance bills be delivered to the House Ways and Means Committee by March 25 does not automatically mean that early votes will be taken on the floor. However, it does provide a significant amount of time for negotiation of a budget package before the end of session in May. Governor Dayton will present his budget this Tuesday, February 15th. The governor's budget, and the Republican leadership's response, should provide some insight into just how protracted those negotiations may become.
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