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Ventura, House Democrats balk at budget deal
By Laura McCallum
Minnesota Public Radio
February 20, 2002

Gov. Ventura blasted a budget deal reached by House and Senate leaders as an election-year gimmick. Ventura says the deal won't solve the state's budget crisis, and will only make the problem worse next year. Ventura says he hasn't decided whether to veto the plan. He'll get to make that decision soon - legislative leaders say the bill will land on his desk as early as Thursday.

House Minority Leader Tom Pugh, DFL-South St. Paul, says his caucus is unified in opposing the deal's nearly $70 million in cuts to K-12, early childhood and higher education budgets.
 

The budget deal uses one-time money and spending cuts to address the nearly $2 billion projected deficit this biennium. Gov. Ventura told an energy forum that the plan jeopardizes Minnesota's coveted triple-A bond rating, because the deal draws down the budget reserves without replenishing them.

"Rest assured, if you act like a double-A bond-rated state, chances are you're going to be one."

Ventura says a lower credit rating would make it more expensive for the state to borrow money. Ventura's plan to balance the budget uses a combination of the budget reserves, tax increases, and spending cuts. He says legislators are taking the easy way out - by delaying tough choices about tax increases and deeper spending cuts until next year.

"It's a solution for politicians. It's a solution to protect your elected status. It is not a solution that is going to solve Minnesota's problems," he says.

Ventura says he has no plans to ask for House DFLers' help if he decides to veto the plan. House Democrats have not joined with the other three caucuses in endorsing the deal.

Their decision is key, because it takes two-thirds of the Legislature to override a gubernatorial veto. House Minority Leader Tom Pugh, DFL-South St. Paul, says his caucus is unified in opposing the deal's nearly $70 million in cuts to K-12, early childhood and higher education budgets.

"We could be on board very easily. Restore the cuts to education, House Democrats are on board," Pugh says.

Legislative leaders say they've already agreed to the cuts, and the plan won't change. Budget committee chairs met through the night behind closed doors to work out the details of the spending cuts.

Republican House Speaker Steve Sviggum says House DFLers should join the other three caucuses in signing to the plan.

Gov. Ventura told an energy forum that the plan jeopardizes Minnesota's coveted triple-A bond rating, because the deal draws down the budget reserves without replenishing them.
 

"They're kind of like that fan in the stands that wants to criticize everybody - wants to criticize the referee, wants to criticize the coach, wants to criticize the players, but they're not in the game themselves. They have no plan, they're void of leadership," Sviggum says.

House DFLers say they've recommended replacing the education cuts with cutbacks in outside consulting contracts. Minority Leader Pugh says he's not sure how his caucus will vote on overriding a gubernatorial veto - if the choice is between education cuts and giving the governor the authority to unallot education spending.

The House and Senate plan to vote on the plan and send it to the governor late Thursday. Legislative leaders insist the rush to pass the bill has nothing to do with election-year politics.

DFL Senate Majority Leader Roger Moe is expected to enter the race for governor when he makes an announcement in Crookston on Sunday. Moe admits he's never seen a budget deal come together so quickly in his more than 30 years at the Capitol. But Moe says the timing was based on a sense of urgency to balance the budget.

"In this business, you negotiate, you try to work things out, and try to get them done," says Moe. "If it would've meant that I would've had to be here over the weekend to try to get it worked out, I would do that. That's my responsibilities. Other factors, those are secondary."

Moe says the Legislature will tackle phase two of the budget problem - the deficit in the next biennium - after a new budget forecast comes out in a week. He says lawmakers still have a lot of tough decisions ahead of them - and probably won't complete their work until the end of March.

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