editorials

With a State of the State speech Wednesday that was more pep talk than policy prescription, Gov. Tim Pawlenty may have sought to cheer a state that has come down with a case of the economic doldrums.

The message may have had that effect on those who take comfort in hearing that, as ever, the Republican governor stands squarely opposed to higher state taxes. Pawlenty brandished a "taxpayer protection pen" and vowed to veto any tax increase the DFL-controlled Legislature has the temerity to send to his desk.

This is not the time for a state spending spree. But along with the need for fiscal restraint, it's clear that "No new taxes," which has been state government's rule since the days of Pawlenty's precedessor, didn't spare the state from a nasty recession in 2001 and hasn't protected us from losing jobs and seeing incomes slip in national rankings this winter.

Economies have cycles, and state government can do little to reverse short-term fortunes. It can, however, position Minnesota for the future by improving the state's infrastructure and enlarging its skilled workforce. Minnesotans heard a little -- but only a little -- from their governor about those needs yesterday. Pawlenty offered intriguing ideas for attracting more able people to the teaching profession, and improving the skills of those already in the field.

But he didn't talk about how to expose more 4-year-olds to quality early education, or improve high school and college graduation rates, particularly among people of color. He didn't mention the funding squeeze faced by school districts that have become overly dependent on voter-approved property tax levies for operating funds.

As for transportation, Pawlenty boasted about the Northstar commuter rail line, now under construction, and about road projects largely financed with advanced federal money.

But he didn't wade into the particulars of his long-running fight with the Legislature over whether state investment in transportation should be increased a little or a lot, and via new taxes or borrowing. His bland "I remain hopeful" comment might have been the words of someone who expects the Legislature to take the issue out of his hands.

Yet Pawlenty signaled that he does not want to be left out of work the Legislature started last summer on tax reform. He'll appoint his own study group, he said, and charge it with recommending tax law changes that would improve the state's business climate.

The Legislature's own interest in this topic says that Minnesota is due for another serious review of its tax policies, akin to the Latimer Study Commssion of the early 1980s. In the past, Pawlenty's aversion to tax increases has appeared to extend to tax reform. He did well to dispel that notion yesterday. Now he should show that he's serious, by appointing a bipartisan and respected panel of tax experts -- including legislators -- to do the work.