Pawlenty rejects special session for bonding bill

Gov. Tim Pawlenty on Monday rejected a special session to consider a proposed bonding bill that would create jobs, legislative leaders said.

After meeting with Pawlenty, Sen. Majority Leader Larry Pogemiller said he was "stunned" by the governor's response. House Speaker Margaret Anderson Kelliher called the decision "disappointing."

The legislative leaders had pitched a $320 million bonding proposal that would be used for construction on bridges and other infrastructure, for higher education and for roads around a new steel plant on the Iron Range.

"He said he didn't think there was anything we could do to help create jobs in the short term," Pogemiller said. "We simply said we should close corporate loopholes and do a few basic bonding proposals that will meet the spring construction season."

Pawlenty, a Republican, plans to take up a bonding bill when the Legislature meets in February, but DFL leaders said the state should act now.

"The next legislative session begins in two months," said the governor's spokesman, Brian McClung, "and Governor Pawlenty encouraged DFL leaders to work on their bills in advance so there can be quick action on bonding and other bills as soon as the session starts."

McClung added, "With a slowing economy, DFLers believe we need higher taxes and more government programs and buildings. Governor Pawlenty believes we should cut taxes and put more money in the pockets of hardworking Minnesotans."

• Higher-education deferred maintenance: $80 million for the University of Minnesota and $110 million for the Minnesota State College and University System.

• Deferred maintenance for state buildings: $50 million.

• Local bridges: $50 million.

• Roads and other infrastructure around a new steel plant in Itasca County: $30 million.

Pogemiller also said for four or five years, lawmakers have tried to close corporate loopholes that allow some corporations to characterize domestic income as foreign income, thereby avoiding taxation. Minnesota is one of the last states to close such loopholes.