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 Tuesday.

Facing daunting budget deficits, Minnesota Republican Gov. Tim Pawlenty and Wisconsin Democratic 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 released a 130-page report Tuesday outlining ways each state could save about $10 million in one-time costs. The two could collaborate on such things as unemployment reimbursement, the report said, and using mutual IT systems to monitor child support enforcement and to identify tax cheats and other fraud.

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 in St. Paul.

"What we've discovered is a process that probably should go on indefinitely," Doyle said.

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.

Uncommon era

The proposals include possible sharing of dairy inspections and mutual permissions for such things 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 for its prison system from the Wisconsin facility.

Pawlenty would not rule out attempting similar relationships with other neighboring states but said the similar size of state government and a shared culture made partnering with Wisconsin an easier fit. While he would not rule out some job loss for state workers, most of the savings would be in coordinating operations, he said.

"We share a common border with Wisconsin," Pawlenty said. "They are our competitors in football and basketball, but they are our friends in so many other respects. The two states have a common heritage, a common history. But what is not common is the historic challenges that Minnesota and Wisconsin face with this terrible national economic crisis. We need to do all we can to make sure the best value is being put forth on behalf of our citizens."

Other collaborative projects could include a federally mandated clean-up of the St. Louis River, which flows between Duluth and Superior into Lake Superior. Coordinating efforts is expected to save $1 million. Minnesota and Wisconsin officials have talked about having Minnesota prisoners manufacture endangered species license plates for Wisconsin, saving Wisconsin about $1million.

While generally optimistic in tone, the report also sheds some light on the possible headaches associated with breaking through the minutia of bureaucracies. Take mutually purchasing ammunition: Wisconsin's ammunition contract is about to expire, and the state could benefit from using Minnesota's contract. But Wisconsin's Department of Corrections is authorized to use only Remington, Winchester or Federal brands. Federal is the only brand that Minnesota and Wisconsin have in common.

Mark Brunswick • 651-222-1636