As military engagements go, the one that took place Thursday morning in a wood-paneled hearing room at the State Capitol was a rout. Incensed that the integrity of the "Support Our Troops" license plate program had been impugned, veterans from around the state mobilized to defend the program and the use of $30,000 from it to pay a former governor's office staffer who did outreach for the Minnesota Department of Veterans Affairs.

By 10 a.m., the Charge of the License Brigade had achieved its objective and then some. Led by Michael Pugliese, a Marine Corps vet who is now a department deputy commissioner, veterans argued compellingly that the money had been well-spent and that "Support Our Troops" plates deserve Minnesotans' continued support.

A bill that would have required the governor's office to return the $30,000 and would have put additional reporting requirements on the dollars' use is now going nowhere. Legislators quickly and correctly concluded that it wasn't needed and that it would have singled out the veterans department. About the only thing missing Thursday: white flags for state senators and DFLers Steve Murphy, Don Betzold, Dick Cohen and Rick Olseen to wave as they beat a retreat.

But here's hoping that these legislators regroup, rejigger their tactics and emerge to fight another day. Lost amid the emotion on Thursday was a more important question: Why is Gov. Tim Pawlenty relying more heavily than predecessors on "interagency agreements," which allow his office to transfer some staff costs to other areas of the state budget?

That's the issue at the heart of the license plate kerfuffle. The staffer who did veterans outreach was a Pawlenty appointee. The $30,000 covered a portion of her salary; in return, she spent part of her time helping connect underserved veterans with services.

Legislators questioning the proliferation of such agreements unfortunately wound up picking a fight with veterans. Not smart. But their basic question is still valid. Pawlenty is certainly not the only governor to rely on these agreements. But according to the data presented Thursday, the total spending by his office on such agreements for fiscal 2010 is $675,000, and has been as high as $849,000 -- up from $242,000 in 1992. Pawlenty spokesman Brian McClung notes that the governor's office has 35 percent fewer full-time positions than two previous administrations' peak staffing and that its budget is less in actual dollars than what the office spent in 1992.

Interagency agreements are not the most important issue facing state government, nor are they the best way to fund the governor's staff. The funding method makes it hard to assess how resources are deployed. The more transparent route is to ask the Legislature for funding.

There's also a power-dynamic concern here. Do commissioners serving the governor feel comfortable saying no if they're asked to direct agency dollars toward the governor's office staffing? The pugilistic Pugliese didn't hesitate when asked that on Thursday, and we believe him when he says he'd object if it wasn't a good deal for his agency. Not every commissioner, however, might be as strong-willed.

The hearing Thursday should have vanquished concerns about the worthy license plate program. Questions about interagency agreements still need to be explored and addressed.