by T.W. Budig
ECM Capitol reporter

Gov. Tim Pawlenty is proposing to change the state constitution so lawmakers would look less to the future in determining state spending limits than the past.

Pawlenty today (Thursday, Nov. 5) proposed placing before voters next year a constitutional amendment that would restrict lawmakers from spending more on an upcoming biennium than the amount of revenue brought in during the current, two-year spending cycle.

Gov. Tim Pawlenty today (Thursday, Nov. 5) proposed a constitutional amendment that, if passed by voters, would limit state spending in an upcoming bienniums to the amount of revenue the state took in during the current biennium. The state would reduced its spending by $22 billion had this amendment been in place since 1960, Pawlenty  said. (Photo by T.W. Budig, ECM Capitol Reporter)

“We need to change the way we budget in the State of Minnesota from what we want to spend to what we have brought in the door,” said Pawlenty, speaking at a Capitol press conference.

“In the overall scheme of things, this is not draconian,” said the Republican governor of the proposal.

Spending reduction of $22 billion

Had the amendment been in place since 1960, state general fund spending would have been reduced by more than $22 billion, said Pawlenty.

He portrayed the level of state spending prior to his administration as “amazing, startling, frightening.”

That the state has a spending problem should be plain to people of all political colors, he argued. “It’s a simple matter of math,” said Pawlenty.

While praising the expertise of state fiscal planners, Pawlenty argued that  state budget projections tended to be off.

Yet, lawmakers make legally binding spending decisions based on these numbers, he argued.

Under his proposal, lawmakers would still be free to determine exactly how budget dollars are spent, Pawlenty pointed out.

In times of surplus revenues, Pawlenty proposed the extra dollars be allocated to the budget reserve, one-time spending, tax relief. But he indicated a willingness to discuss alternatives.

Pawlenty acknowledged that some budget projections would still be needed under his proposal, but estimates for much shorter periods of time.

Impact on K-12 funding shifts

Pawlenty indicated that he did not know how the proposal would impact K-12 funding shifts — the Pawlenty Administration and others have used these shifts in balancing tight state budgets.

“I suspect they won’t like it,” Pawlenty said of DFL reaction to the amendment proposal.

Senate Tax Committee Chairman Tom Bakk, DFL-Cook, said his committee would certainly hear Gov. Tim Pawlenty's spending proposal — be flexible to meet with the governor's schedule, he said. But DFLers questioned why Pawlenty was proposing the amendment at the end of his term. (Photo by T.W. Budig, ECM Capitol Reporter)

But Senate Tax Committee Chairman Tom Bakk, DFL-Cook, a gubernatorial candidate, and Senate Majority Leader Larry Pogemiller, DFL-Minneapolis, both expressed willingness to explore the proposal.

“At first blush it does seem odd that on your way out the door, with a projected $5 (billion) to $7 billion deficit, you would recommend something that you never even proposed to the Legislature,” said Pogemiller of Pawlenty’s proposal.

But Pogemiller encouraged Pawlenty to pursue it.

“I would hope that’s not the path Governor Pawlenty is on, holding a press conference and not talking about the issue,” said Pogemiller, saying that former state senator Michele Bachmann, now a congresswoman, took that path with similar legislation.

Governor’s motivation

He had no idea about the governor’s motivation in bring forth the proposal, said Pogemiller.

He questioned whether Pawlenty’s own budgets fell within the proposed amendment’s threshold.

Bakk indicated his committee would hear the governor’s proposal in a December tax committee hearing.

Other DFLers offered sharper critiques.

“Similar constitutional amendments, like the Taxpayers Bill of Rights in Colorado and Proposition 13 in California, have been disastrous for the states that have adopted them,” said DFL State Party Chairman Brian Melendez.