
This morning I talked by phone with Senate Majority Leader Larry Pogemiller about the Gearin decision and the meeting between Gov. Tim Pawlenty and legislative leaders this Friday. Among the questions on Pogemiller's mind: What difference would it really make if the Legislature authorized a school payment shift, as Pawlenty is now asking?

So now what? The implications of Judge Kathleen Gearin's order suspending a portion of the budget cuts singlehandedly imposed by Gov. Tim Pawlenty last summer will likely take months to play themselves out. But here's a quick spin through some of what Donald Rumsfeld would call the "known unknowns" to watch in the days and weeks ahead.

State finance officials last week told a House and Senate budget panel that they might have to borrow money for the first time since 1984 in order to keep state government operating. And a senior debt-management analyst conceded that the move could damage Minnesota's credit rating.

Gov. Tim Pawlenty talked about the Minnesota budget deficit on Fox News last Friday night. Notably, Pawlenty sounded a slightly different chord on K-12 education than he had in his press conference two days earlier, telling the host it would "probably" be spared cuts.

This fall, DFL leaders in both legislative chambers said one of their priorities for the 2010 session is to generate a bill--or a package of bills--over and above the session's bonding efforts to stimulate job creation in Minnesota. But this morning Sen. Tom Bakk said what a number of observers have been thinking: Without new revenue, it will be impossible to do much.

PIM caught up with Minnesota Department of Revenue Commissioner Ward Einess outside this morning's Senate Taxes Committee hearing, and he confirmed that the Pawlenty administration will make up its mind about possible unilateral budget cuts to local government aid programs "before the end of this week."

DFLers in the state Legislature this week criticized the amount of political appointees in Gov. Tim Pawlenty's administration.

In the large view, a lot about Wednesday's release of the November economic forecast was entirely preordained. The news, once again, was going to be bad. The governor would then sling arrows at the Democrats in the Legislature, after which the press corps in attendance would scuttle downstairs to hear the Democrats in the Legislature sling arrows at the governor. But the day held a few surprises as well.

While DFLers were lining up today to accuse Minnesota Gov. Tim Pawlenty of wreaking havoc on the state's budget, Republicans begged to disagree -- using some of the governor's same words.

Minnesota DFLers continued playing the "Blame Pawlenty" game this afternoon in the wake of the November budget forecast release, which predicts a $1.2 billion deficit by the end of the 2010-2011 biennium.
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