Backing up each other's databases, investing together in communications systems for law enforcement, and even buying milk from a Wisconsin prison dairy farm are a few of the ways Minnesota and Wisconsin, long friendly but persistent rivals, can work together to save money, the governors of both states announced today.

Facing daunting budget deficits, Minnesota Gov. Tim Pawlenty and Wisconsin Gov. Jim Doyle announced plans in February to search for ways to collaborate on state government services to streamline operations and save money.

The two announced a 130-page report today that could save each state about $10 million in one time costs. The two could collaborate on such things as unemployment reimbursement and using mutual IT systems to monitor such things as child support enforcement and to identify potential fraud in income tax collection and residency and homestead claims.

The two states also are working together to apply for federal stimulus money for high speed rail from Chicago, through Wisconsin and into Minnesota.

Many of the initiatives outlined in the report could be accomplished in two to three months, while others might require changes in state law or existing contracts, including labor agreements., Doyle said at a Capitol news conference.

Most of the savings could come in one-time outlays, such as purchases of compatible IT systems. Pawlenty said the savings to the states won't necessarily translate into lower fees or lower taxes for the average citizen, but will allow the savings to be deployed elsewhere in cash-strapped state government.

The proposals include possible sharing of dairy inspections and mutual permitting for things such as oversize trucks. On a smaller scale, Wisconsin plans on expanding a dairy farm it operates through its Department of Corrections and Minnesota could save $250,000 buying dairy products from the Wisconsin facility.

Mark Brunswick • 651-222-1636