Special session plans teeter as Dayton, GOP dig in on auditor fight

Gov. Mark Dayton said Wednesday he's not willing to call lawmakers back into a special session until they agree to drop language that strips the state auditor's oversight of county government.

A measure that passed during the regular session would allow counties to hire private auditors to examine their finances. Dayton says that would destroy the Office of the State Auditor. House Republicans say they're willing to make some changes to the new law, but not to go as far as Dayton wants.

Dayton on Wednesday ratcheted up the rhetoric, calling the state auditor issue so egregious that he's willing to keep lawmakers from finishing their budget work until they agree to change it.

"To come in and just turn over to the private sector a function that is embedded in the constitution is just absolutely wrong," he said.

If the new law stands, State Auditor Rebecca Otto's responsibilities would be reduced significantly. It allows counties to hire private auditors to examine their financial reports and bypass the state auditor's office.

In calling for a change to a law he signed just last month, Dayton is defending a fellow Democrat who is worried that her authority is being eroded. He's also protecting the auditor's office that he held in the 1990s.

"That entity exists to audit the counties and cities of the first class," Dayton said. "It's a public audit function, which is different from private CPA firms and it serves a purpose, which voters have supported."

Otto said allowing counties to hire private audit firms instead of using her office would cause problems. She said a private firm may not have the taxpayer's interest in mind when doing the work.

The auditor said she was "very pleased that the governor took this strong stance because he understands that this is the wrong direction for our state and that people are robbed and they will be robbed of an extraordinary essential piece that they expect from our government."

Otto said she's looking at other options if the Legislature doesn't change the law. One that she said she's considering is filing a lawsuit to argue that the Legislature overstepped its authority by infringing on the rights of a constitutional officer.

Republicans see it differently.

Rep. Sarah Anderson, R-Plymouth, notes that 28 of the state's 87 counties are already permitted to use private auditors. She says allowing counties to contract with private firms will save taxpayer money. She said counties could spend that money on roads or to hold the line on property taxes.

"He is willing to sacrifice property tax relief for the citizens of Minnesota for this provision, which he signed into law," she said.

Anderson also says Dayton effectively agreed to the provision when he signed her state government budget bill that included the Auditor language.

Dayton said he signed it to protect the jobs of thousands of state workers who could be laid off on July first if a budget deal isn't reached.

House Speaker Kurt Daudt, R-Crown, said House Republicans are inclined to make a technical fix to the bill but are not likely to eliminate the change entirely. He said giving counties an option is a priority for his caucus.

"This is a difficult sell for the governor," he said. "This is obviously a provision that he signed just a week ago. It's probably not advisable to hold up the special session because he wants to repeal a bill that he just signed."

Lawmakers are still working on three other budget bills that Dayton vetoed. Dayton and Daudt say there are no major stumbling blocks left to reaching agreement on those bills.