DFL prepares budget without tax increase, less money for schools

With only six days left in the session, Senate Democrats began the day with a plan to take action on as many as six budget bills. The bills on state government, higher education, economic development and health and human services were reworked versions of the bills Gov. Pawlenty had vetoed in recent weeks.

With Monday's session deadline approaching, DFL Majority Leader Larry Pogemiller of Minneapolis explained the need to pass the bills before midnight. The governor has three days to veto any of them, leaving three days remaining in the session.

"Let's say we can't come to an agreement on each and every piece of this. We then do have three days still to operate, to accomplish the work. Because I presume the governor would not wait for three days and then veto it at the last minute. Even if he did, we'd still have Sunday and Monday," Pogemiller said. But Gov. Pawlenty was not involved in the negotiations on the new budget bills, and Senate Republicans were concerned his absence is a recipe for more vetoes. So as the Senate went into session on Wednesday, Minority Leader David Senjem of Rochester called on Democrats to take a different approach, and actually talk to the governor. "We're not going to get this resolved by dancing through the exercise on the floor, taking the votes," he said. "That is absolutely not the way this thing is going to work. Unless we come together in a negotiation, rather than a floor vote, we are never going to get out of this place. And we're going to see special session and who knows what else?"

Senjem's plea convinced Pogemiller to abruptly recess and schedule a negotiation session. At the same time senators were preparing their olive branch, Gov. Pawlenty was signing the statewide smoking ban bill in Eagan. Pawlenty took the opportunity to scold the Democrats.

"The DFL appears to be throwing property tax relief and K-12 funding under the bus for more social service spending."

"They've made it very clear that their preferred method is to send us bills. You know, I suggested to legislative leaders early on that if they put Senator Pogemiller in the driver's seat, he'd take them over the cliff, and I think that's where they're headed," Pawlenty said.

Pawlenty said he hadn't seen the new DFL bills, but he didn't like much of what he was hearing about them. Democrats have a new tax bill without the income tax increase the governor opposed. But as a result, they've also abandoned the property tax relief he favors.

DFL leaders have also left out many of the governor's education proposals from a school funding bill. The governor hasn't had a chance to veto that measure, but DFLers reworked it anyway. The new version would give a big boost to special education funding, but only a 2-percent increase on the basic funding formula.

Early childhood education would get less than in early proposals. DFL Assistant Majority Leader Tarryl Clark of St. Cloud says she hopes the governor can support the bill.

"The preferred vision for the next few days would be that he would see the good in this, and that we could work, perhaps together, finding some additional revenue that might take care of that extra money on the formula, would help with the early childhood, perhaps do some more for rigor in high schools," she said.

The House and Senate agreement on the new education bill took place outside of the conference committee that was appointed to address the issue.

Sen. Gen Olson, R-Minnetrista, was a member of that committee, but wasn't involved in the negotiations. Olson says crafting an education bill in private is an abuse of the process.

"When you have 40 percent of the state budget at stake, I think if there's any process and any bill that needs an open forum for its consideration it's that one," she said.

By early afternoon, House and Senate leaders were heading to the the governor's office for a closed-door meeting on the budget. The hour-long meeting broke up quietly with no announcements.

"They had a good and productive meeting," a spokesman for the governor said. "We're going to keep conversations going, and people are going to keep talking. We're going to have everybody back and forth and keep on going."

The Minnesota Senate was back in session by mid-afternoon and quickly passed the new bills on higher education and economic development. The health and human services bill and state government bill generated longer debate. The House is expected to work late into the night working on the same bills.

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