Gov. Mark Dayton dismissed the House Republicans' plan to cut taxes $2 billion, calling it a "non starter" and not worthy of negotiation.
He criticized the plan for offering small, temporary tax breaks for the middle class while extending permanent breaks to wealthy families with estates and businesses.
Dayton, looking weary as the Legislature moves toward its final weeks with both sides far apart on crucial budget bills, also criticized the Republican plan for its long term costs. He said Revenue Department analysis showed that once fully phased in, the Republican plan would cost $4 billion, turning the current $1.8 billion projected surplus into deficit.
"To put us on that ledge where the first ill wind could push us over into another decade of the experience that we just done with a couple years ago, with chronic deficits, is just unacceptale," he said.
Asked what olive branch he would give to Republicans, Dayton said he didn't want to negotiate in public.
Moments later, however, he acknowledged the long term fiscal risks of his own universal prekindergarten plan and said he would take money from his spending proposals and put it in state reserves, matching dollar-for-dollar all money Republicans take from their tax plan and put in reserve.
Gov. Mark Dayton delivers his fifth State of the State speech, and first of his second term, before a crowd of state lawmakers and other officials Thursday night in the House chamber.
Dayton said last week that his 7 p.m. speech would likely run about 30 minutes. He's expected to put a particular emphasis on what's become his signature proposal of the 2015 session, a multimillion dollar spending boost for early learning programs including universal preschool at Minnesota public schools.
Dayton will have a number of guests watching the speech at his invitation, including former Gov. Wendell Anderson, his son Eric Dayton; Ibrahim Mohamed, a Dayton appointee to the Metropolitan Airports Commission who drives a luggage cart at the Twin Cities airport; a father and daughter from Maxfield Elementary whom Dayton met on a visit to the school; a preschool teacher from Newport Elementary School; Worthington Mayor Mike Kuhle, and the U of M and MnSCU chancellors.
Dayton's speech will be streamed live at Startribune.com. Political reporters Abby Simons and Patrick Condon will be tweeting about the speech at @ajillsimons and @patricktcondon. A full story about the speech will be posted online and published in Friday's newspaper.
Gov. Mark Dayton said Wednesday he might ban or put limits on state travel to Indiana in response to that state's new law governing religious freedom, which has come under heavy criticism from gay rights activists and supporters.
"I abhor the action taken by the Legislature and governor of Indiana," Dayton told the Star Tribune. "We are considering now what we can legally and properly do without overreaching, and setting up a situation where we're telling state employees they can't go to Indiana for some resolution of a public issue."
Dayton said he hoped to announce some type of response within 48 hours.
On Wednesday, the Minneapolis Fire Department canceled travel plans to an Indiana conference at the urging of Mayor Betsy Hodges, who is moving to prevent any city-funded travel to Indiana.
Other Democratic mayors and governors around the country have taken similar steps, including the governors of Connecticut, New York and Washington state.
The law, which Indiana's Republican Gov. Mike Pence signed in private last week, purports to protect individuals and business owners in the free exercise of religion. However, its critics believe it could provide a legal basis for discrimination against gay people. In one case, an Indiana pizzeria has asserted it would cite the law's protections so as to not have to cater gay weddings.
The law prompted a nationwide outcry, and has even come under criticism by some Indiana Republicans, including the mayor of Indianapolis. Pence has since said he wants the law changed to address some of those concerns, but leading Indiana Republicans have rejected calls to repeal it outright.
"I join with those who have denounced the law. I hope it's rescinded as soon as possible," Dayton said. "The question is what is the proper response?"
Problems with water damage, additional need for security improvements and other unforeseen costs have added $30 million to the cost of a major State Capitol building renovation, Gov. Mark Dayton and lawmakers learned Friday.
If the additional money is approved by lawmakers, it would push the total price of the multi-year renovation to about $300 million. Dayton and lawmakers discussed the additional costs Friday in a meeting of the panel overseeing the project, which also saw leading lawmakers second-guessing some of the decisions by the project's architects.
The biggest chunk of the additional $30 million in costs, about $17 million, is tied to addressing what the architects described as "water intrusion and settlement." Last spring, demolition work tied to the renovation uncovered evidence of widespread water leaks into the Capitol basement, particularly underneath two outdoor staircases on the east and west sides of the building.
Dayton and lawmakers expressed some irritation about the idea of having to pony up more money for the project, but there seemed to be bipartisan agreement it was probably necessary.
"I don't know what the alternative would be," Dayton said. Said Sen. Dave Senjem, R-Rochester: "This seems in order -- we're mobilized, we're in there already, let's do it right."
The additional spending has to be approved through the legislative process. Senate Majority Leader Tom Bakk, DFL-Cook, said some of that might be able to come from construction bonds, but also suggested a portion may have to come directly from the general fund.
About $20 million from a contingency fund for the project is mostly spent, which Dayton said was also unfortunate but not too surprising.
"It's a huge building and it's 109 years old," Dayton said.
After discussing the cost overruns, Dayton and lawmakers haggled with the project's planners about public access to the building.
Severall senators were upset with tentative plans to park school buses and place handicapped parking spots directly at the building's front, facing south toward downtown St. Paul.
Bakk and Sen. Ann Rest, DFL-New Hope, expressed a strong preference that school buses could instead be parked along the building's east side, on Cedar Avenue. Bakk noted that a new Senate parking ramp under construction just north of the Capitol would have a lot of handicapped spots.
Dayton, as he has previously, weighed in on the building's art. A recent assessment by Ted Lentz, an architect and member of the Capitol Area Architectual and Planning Board, valued the building's art assets as a stunning $1 billion, but Dayton has been critical of certain aspects of the art, suggesting it over-emphasizes Civil War battles and portraits of former governors.
A subcommittee of the Capitol Preservation panel has been working on envisioning how to highlight existing art and possibly incorporate new art, too. The panel on Friday backed a request for $3 million in additional dollars to restore existing art that in some cases is damaged.
Former Gov. Tim Pawlenty talked up Wisconsin Gov. Scott Walker's chances in the emerging Republican presidential race, saying his fellow Midwesterner is best situated to challenge former Florida Gov. Jeb Bush.
"Jeb clearly is the establishment candidate, and he's raised a boatload of money," Pawlenty said Friday at the University of Minnesota. But in a national GOP fragmented between what's left of the establishment, neoconservatives, libertarians, tea partiers, social conservatives and others, Pawlenty said Walker is best situated to straddle that factionalization.
"Scott is from a Midwestern state, but he's got a national profile and national fundraising capabilities," Pawlenty said, norting Walker's successful efforts to weaken labor union power in Wisconsin.
Drawing parallels between their experiences, Palenty said Walker's success in a Democratic-leaning state has taught him how to speak to moderate voters.
"If you're governing in MInnesota or Wisconsin, there's a common sense craft in how you make common sense arguments using conservative principles," Pawlenty said. "Scott's conservative, but he doesn't scare the establishment."
Now working as CEO of the Financial Services Roundtable, a Washington-based lobbying group for banks, Pawlenty said he's not ready to endorse a GOP candidate but did not rule out doing so. He did have scathing comments for one prominent Republican, former Alaska Gov. Sarah Palin.
In 2008, Pawlenty and Palin were both finalists to be running mate to Sen. John McCain; Palin won out. At the time, Pawlenty said, he didn't know what to make of her. He later made up his mind.
"One of the criteria is, you have to be able to do the job" of president, Pawlenty said. "You have to be qualified and prepared. I don't think that Gov. Palin would be viewed by the country or should be viewed by the country as a wise selection to be president."
Pawlenty's appearance at the Humphrey School of Public Affairs was mostly a Q-and-A session with former state House Speaker Steve Sviggum, who now teaches there. Sviggum and Pawlenty were close allies in the late '90s and early '00s, when Sviggum led the House and Pawlenty was his deputy.
Elected governor in 2002, Pawlenty narrowly won a second term in 2006 -- still the last time a Republican has won a statewide race in Minnesota. Pawlenty said he thinks Minnesota has shifted a little to the left since then, and he said the state Republican Party must "market itself better" to new groups of voters.
Pawlenty talked little about his failed 2012 bid for president, where he flamed out early in a crowded field of Republican contenders. "Just about everything we did" was a mistake, he said, particularly the decision to spend limited campaign resources on winning a straw poll of Iowa caucus voters.
While repeatedly describing himself as "politically retired," Pawlenty weighed in on a number of state and national issues. He spoke most about education policy, a favorite issue during his time as governor.
The closest Pawlenty came to commenting on a current issue before the Legislature was to voice support for changing Minnesota's seniority-based system for hiring and firing teachers. A bill to scrap that system recently passed the state House, but faces a skeptical audience with Pawlenty's DFL successor, Gov. Mark Dayton.
Still, Pawlenty declined to criticize Dayton.
"I try not to comment on the current governor because it always annoyed me when former governors weighed in," Pawlenty said. "It's like, shut the hell up."
Like a good politician, Pawlenty refused to completely rule out a future run for office, but tried to discourage speculation that he might. Dayton is not running again in 2018, leaving an opening in Pawlenty's old job, and both of Minnesota's U.S. Senate seats are currently held by Democrats.
"I had a full run at it," Pawlenty said. But noting he's still a relatively young 54, he added: "I don't ultimately know what the future holds."
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