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Geoff Michel: Governor's budget is well-targeted

It focuses on strengthening education, attracting businesses and easing our financial albatrosses.

Last update: February 18, 2009 - 10:18 AM

Media coverage of the recession has turned the business sections of newspapers into obituaries. Minnesota faces a state budget deficit approaching $7 billion. Our reserves are gone. The global economy continues to sour, offering little hope for the quick rebound that marked the end of previous recessions. Even with one-time money from the federal government, Minnesota has a long climb ahead.

It's time for us legislators to go to work. We have two critical tasks this session. Yes, we must do the arithmetic and balance the budget. But the challenge goes well beyond that. Our budget deficit is really a jobs deficit. We must position Minnesota to regain its nation-leading economic status when this recession ends.

Unfortunately, we're caught up in the politics as usual that makes lawmakers look like kids in a snowball fight. The governor proposes his budget. Legislators spend weeks taking potshots at him and at each other, scoring points with interest groups but offering no alternatives. Finally, when everyone is annoyed by the entire process, brinksmanship and last-minute deals produce giant omnibus bills passed after midnight on the last day of the session.

Our challenges are far too serious for political games. Minnesotans are ready for solutions, and they expect leadership. Gov. Tim Pawlenty's budget proposal is a solid first step. He vigorously stakes out the two priorities that a cold state in the Midwest must stand for: Great schools to help prepare our next generation for a global marketplace, and a job climate that will stand out and attract businesses from all over the world.

The governor also slows the runaway trains of our budget: health and human services and welfare spending. Without reform, these costs are scheduled to increase an unsustainable 22 percent in the next two years. As baby boomers near retirement, this part of the budget will suffocate our ability to focus on education and jobs. The one-time federal money in this area is not reform and merely delays the tough decisions for another budget.

We need to give families a reason to choose Minnesota. They will come and stay if we allow our schools to innovate, reward our best teachers and declare that, even in the midst of a difficult recession, we can do more for education in Minnesota.

We need to give employers, entrepreneurs and risk-takers a reason to choose Minnesota. In a global economy, with the fastest-growing markets half a world away, 20th-century tax structures won't work. We need a tax system that pays the bills -- but one that also attracts employers and business investment. Minnesota has the third-highest business tax rate in the world. We rank 46th in the country in terms of small-business environment. Those numbers must change if we want employers to choose Minnesota.

The Legislature must lead as well. We should reduce the expenses of the legislative branch immediately. We should cut our own pay. When times are tough, those of us blessed to work in St. Paul should set an example. We can reduce our salary and other costs. Senate Republicans have repeatedly offered budget reductions since the first day of the legislative session. These suggestions won't balance the budget on their own, but they are important symbolic moves. They allow us to signal to Minnesotans that we are all in this together. Then we can press forward toward a 21st-century budget that reflects the priorities and promise of this state.

Geoff Michel, R-Edina, is assistant minority leader in the Minnesota Senate.

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