Politics in Minnesota: The Weekly Report - Vol. 3, Issue 39 - 4/11/2008
Just as "Hell hath no fury like a woman scorned," the state capitol hath no fury like a GOP Governor whose transportation funding bill veto was overridden by a DFL Legislature.
In a surprise move, GOP Gov. Tim Pawlenty slashed far more ($208 million) from the Legislature's $925 million bonding bill package than was needed to meet state guidelines for limiting borrowing to three percent of the projected general fund revenue (which would have put the bill at $825 million).
Was it a "childish political game," or was it devilishly good politics?
Given the magnitude of the vetoes -- 52 different projects, we'll side with the devil over children's games on this one.
To veto the entire bill, Pawlenty would have ceded power back to the Democrats to craft a new one. Given that Democrats couldn't agree on the $825 million number Pawlenty insisted on, we doubt that legislative Democrats would have been able to craft a bill the Governor could have signed. To not have a bonding bill with attendant construction jobs in tough economic times would have been tough for House Republicans on the campaign trail this year.
"Super slashing" the bill also served as an in-your-face reminder that the Governor is in charge. Overriding his veto did, indeed, have serious ramifications.
But lost in all the speculation about what projects the Governor may have wanted in the bill, like a new state park on Lake Vermillion, is the map Pawlenty just drew that goes far beyond just the bonding bill. The new map suggests a bipartisan solution to end the session.
If the Legislature solves this year's budget deficit of $935 million (which is now $99 million less than that) without raising taxes, in return the Governor will sign up to $108 million in restored bonding projects. Surely to be included in that $108 million is the $70 million for the proposed light rail line connecting Minneapolis to St. Paul. And, not inconsequentially, connecting House Speaker Margaret Kelliher's (DFL-Minneapolis) and Senate Majority Leader Larry Pogemiller's (DFL-Minneapolis) turf to that of House Capital Investment Chair Hausman's (DFL-St. Paul). [A separate story about the Chatfield music library follows several stories down.]
Paul And Our Politics
While some reporters assigned to cover Minnesota politics achieve -- without aspiring to -- cult-like status among Minnesota politicos, rare is the local media celebrity beyond the purview of covering Minnesota politics who actually matters in Minnesota politics.
Former WCCO TV weatherman Paul Douglas is one of those people. [To repeat what all our readers know: Douglas was unceremoniously dumped from the station in a national wave of lay-offs by WCCO owner CBS.]
Why?
First, his subject matter. Nationally, Barack Obama can talk about an America where there are not red states or blue states, but a United States. In Minnesota, nothing crosses the red precinct-blue precinct divide faster than talk about the weather. Weather talk is in our DNA and with good reason ... witness the last 24 hours in what is supposed to be spring. Confession: Your publisher watches very little television news. However, every morning, she scans the headlines on the front page and then immediately turns to Douglas' weather commentary on the back of the Star Tribune's second section. Those paragraphs Douglas cranks out every day are witty and fun and always full of new material. The kind of weather factoid material that feeds our Minnesota DNA. Keeping that a must-read, year after year, is no small feat. Douglas does it, and does it well.
Second, Douglas' professional life story epitomizes the other great subject matter that crosses the red-blue divide: Minnesota's quality of life.
Twenty-two years ago, Douglas started in this market at KARE 11. Then he did what Minnesotans expect local media celebrities to do, he bailed on our state for Chicago, a larger media market, in the mid-1990s. Three years later, Douglas moved his family back to the Twin Cities. And, what most people don't remember, is that he did that without a local weatherman job in his pocket. Dumping a larger city to return to Minnesota?! That made Douglas a poster boy for Minnesota's much touted, particularly by Minnesota pols, "quality of life."
The Star Tribune's Neil Justin captured this quote from Douglas, "We are dedicated to Minnesota," he said. "Our Chicago experience proved to us that bigger is not necessarily better. Minnesota is an extraordinary place, and we are here for life."
Finally, Douglas has been a fixture in another Minnesota political institution, TPT's Almanac, longer than most people realize. Douglas' first appearance on the show was back in 1985 (Almanac had been on the air for less than a year at the time). When Douglas moved back here from Chicago, he actually reached a deal with Almanac to do monthly weather gigs before he reached a deal with WCCO. The first few times Douglas appeared on the show, it wasn't at the table with Eric Eskola and Cathy Wurzer. Former Almanac monologue guy/reporter/funny guy J.G. Preston would interview Douglas on a strange looking set that had a map of the world and an old wooden desk. That changed when some TPT staffer was clearing out scene storage and threw out the set. So, Almanac producers had to change plans, and that's why Douglas ended up at the table with Eskola and Wurzer.
Wonderfully, Almanac plans to continue Douglas' monthly weather chats (you can catch him on the show, tonight). Whether Douglas remains at the Star Tribune is unclear. When queried about same via email, the paper's editor, Nancy Barnes, responded, "Paul and I are getting together soon to talk about his role at the Star Tribune. I'll be able to tell readers more about whether there will be any changes there or not later."
We cannot imagine a scenario where Douglas does not have a future at the paper, and a seriously expanded one at that. As MinnPost's David Brauer wrote in his story about the paper's plans for "Strib TV," and with anti-competitive online issues with WCCO on the web no longer an issue, "hello, Paul Douglas!"
The O' Douglas Factor And Franken
Paul Douglas' returning to Minnesota -- without a signed contract -- reminded your GOP publisher of an important factor yet to play out in the U.S. Senate race. Douglas returned to live here for personal reasons, not professional ones. The "Good Life," quality of life reasons.
DFL U.S. Senate candidate Al Franken moved back here... to run for the U.S. Senate. Did Al Franken move back here for any other reason?
That's great unexplored GOP-issue territory.
Save The Sheet Music: Moisture & Mildew Menace Marching Melodies In Metastasizing Museum
The two bonding bugbears most often cited by Republicans bashing the bonding bill were the the gorilla cages at the Como Zoo and an obscure printed music museum down in Chatfield, a small town outside Rochester. The sheet music museum was allocated $400,000 in bonding authority in the DFL bill. GOP Gov. Tim Pawlenty, in particular, singled out the poor sheet music museum for what verged on ridicule at his press conference announcing the line item vetoes. On his radio show, he went further, saying, "Now, (a sheet music lending library) might be a nice idea, but is that a priority relative to zeroing out the Veterans Home? We're going to have a sheet music museum, Rep. [Ken] Tschumper [(DFL- La Crescent) who represents Chatfield]? Is that the priorities for the state of Minnesota?"
While saying that funding the Brass Band Music Lending Library in Chatfield "may be a nice idea," he accused DFL legislators of padding the cash request from $100,000 to $400,000. Essentially, Pawlenty implied that that DFL legislators fabricated the need for another $300,000 in order to throw their weight around. But the reality is that the museum could certainly use the entire allocation on immediate essential work, directed at saving the improperly stored, overflowing rural archive.
PIM spoke with Teresa Cerling, the library manager, and she questioned Pawlenty's motives for vetoing the bill when the $400,000 represented such a small fraction of the state budget. Cerling also called the veto "purely political." She added that newly elected Tschumper had a lot to do with the veto (he was elected in a district long held by Republicans). Pawlenty, she says, "doesn't know how special it is." [The museum was initially set up with state funds in the early 1980s.]
Despite its underfunded state, the library ships music to foreign countries including Japan, the UK, Germany, and other European counties. Cerling said she isn't sure exactly how large the entire music collection is, but their materials go back to the 1800s, and roughly 30,000 titles of music are available to the public, much of which has gone out of print. Nearly 1,000 boxes of uncatalogued music are waiting to be entered into the system, but for lack of funds.
Among other problems, the museum is running out of space; there's a filing cabinet in the men's bathroom; rare music is stacked almost to the ceiling in the rest of the building. The DFL-offered "extra" $300,000 in vetoed funds would have been used to expand space, fix the heating and air conditioning, and enter the backlog of uncatalogued music into the system. According to a story in the Rochester Post-Bulletin, locals were prepared to match the state grant, so Chatfield wasn't merely getting a free ride on the DFL gravy train. Rebuilding the museum would cost $800,000. This isn't their first tussle with a veto-minded GOP governor: The Post-Bulletin also noted that former Gov. Arne Carlson also had a bit of wrath for the museum, and threatened to veto funds to digitize their collection. While the sheet music might get left to molder through this budget cycle, perhaps the increased publicity about this rare and unusual resource will ultimately save the day. Maybe they should drop the "Brass Band" part of their name: it seems to attract trouble. And the band played on....
Romero Retirement Rout
That's the name the sponsors of 25-year Senate staffer Marge Romero's retirement party labeled the event to be held on Monday, April 14, from 5-7 p.m. at the Dubliner Pub in St. Paul (corner of University and Vandalia). No need to RSVP. The official invite noted that it was "not printed at government expense" and that "discarded envelops and paper were retrieved from Capitol recycling bins and wastepaper baskets." That's certainly true of the invite the PIM office received: The envelope was from Senator Carol Flynn (the Minneapolis DFLer retired in 2000). Romero is to have the final word after the hosters and roasters have said their piece (too bad Romero didn't provide enough material along her storied Senate staff career way). These include former and current Senators Flynn, Keith Langseth (DFL-Glyndon), Roger Moe, Donna Peterson and Dave Senjem (R-Rochester); former judges A.M. "Sandy" Keith and Howie Kabel; and "special friends," Cathie Hartnett, Jim Lerold, Bob Owens, Gary Pagel, Adele Roth and Carol Watson.
Taxpayers League President and former State Rep. Phil Krinkie's darling, the bill abolishing the state and local property tax, was up before the Committee on Taxes this week. Rep. Chris DeLaForest (R-Andover) brought forth HF 3632 to "have a little bit of discussion" regarding the necessity of property taxes. DeLaForest is claiming the original purpose of property taxes, as a tax on the rich, is moot in the 21st Century. The bill found some supporters, such as Rep. Mike Jaros (DFL-Duluth), who agreed with DeLaForest's premise that the property tax is an outdated and flawed from of taxation. Detractors such as Rep. Paul Marquart (DFL-Dilworth) pointed out the direct correlation between property taxes and services, while Grace Schwab of the Minnesota School Board Association testified to the stability property taxes bring to funding the school system. In 2004 (the latest year the Census Bureau has information for) Minnesota's localities collected $4,312,311,000 in property taxes, while the State collected $607,863,000, making Minnesota the 27th highest taxed state nationally according to The Tax Foundation. DeLaForest puts the figure closer to $7 billion now.
Well aware of the hurdles a bill of this magnitude faces trying to become law, DeLaForest is hoping to lay the ground work for a system that would lessen a tax burden he sees as unfair and not equal. "We are on a collision course with property taxes," DeLaForest said. "We have an aging population, one that lives on a fixed income," he went on, "and one that is increasingly unable to pay ever-growing property taxes that accompany homes appreciating in value." DeLaForest also cited the issue of property tax complexity. "Taxation's first principle is people should be able to understand it. There is no H & R Block for property tax payers."
How the state would make up that money is a much murkier subject. DeLaForest suggests the state could raise taxes in other areas, ones that more adequately reflect a tax on wealth, or make local units of government more reliant on state aid. "Maybe force the Legislature to confront what we want and what we are willing to pay for." Acknowledging certain drawbacks the abolition of the property tax would entail, he was certain the benefits would out weigh the drawbacks. "We need competitive corporate and commercial properties," freeing these businesses from their current tax obligations would certainly draw more businesses to Minnesota, and help maintain the ones that are already here.
Schwab sees the property tax revenue as a necessity of maintaining our state's schools. Worried that DeLaForest has not been specific regarding where the money would come from she "doesn't believe it (the money) is available anywhere. The bonds that are used to build and improve schools are based on property taxes." She went on to say "What would we use, income tax? There isn't another legitimate base out there to do this with." Worried about how this bill would effect the constitutional right to attend public school, she stated, "You only get one chance to attend 5th grade." Schwab sees this bill as a tough blow to a school system already struggling to make ends meet. HF 3632 was laid over, and with no senate companion bill and deadlines long passed, the issue is over this year, but sure to resurface next year.
REAL ID: Real Expensive, Real Big, Legislators: Really Not Going To Pay For It
The transportation policy conference committee took a step yesterday in opposing the federal government's "REAL ID" initiative, or at least demanding that Minnesota taxpayers won't have to pay the bill. The REAL ID Act is a federal law from 2005 mandating certain changes to driver's licenses nationwide, ostensibly improving uniformity and security. Legislatures nationwide are fighting over adoption of these standards, in large part due to concerns about the security and privacy of state-level data in federal computers and the hefty financial burden that compliance would place on state budgets.
MPR reports that a transportation policy bill without REAL ID provisions would certainly be vetoed by Governor Pawlenty. The governor is said to understand the concerns over REAL ID, but does not want to completely opt out of the system. One lobbyist had heartburn over it, since the REAL ID battle could cost his clients quite a bit of dough if the big transportation bill gets vetoed. There were a lot of truckers in the room, likely concerned over potential effects on commercial drivers' licenses.
Thursday's conference committee was an amiable attempt to resolve what Sen. Steve Murphy (DFL-Red Wing) called the 'difference between philosophical states' between the Governor and lawmakers, while still maintaining the Legislature's stance of noncompliance with the ID system.
The amendment held firm on financing: no state funds would be used to implement or comply with REAL ID. The exception to this lock on funding is receipt of funds from the federal government 'sufficient to fund 95%' of the state's costs; Minnesota would pick up the tab for the remaining 5%. Sen. Mike Jungbauer (R-East Bethel) lauded the committee chairs, Sen. Murphy and Rep. Frank Hornstein (DFL-Minneapolis), for attaching a figure to the language of 'sufficient' which would eliminate any future ambiguity on funding options for the project. Sen. Rod Skoe (DFL-Clearbrook) asked for clarification on the ultimate cost of REAL ID nationally, to confirm an estimated cost to Minnesota. Figures quoted ranged from 4 to 10 billion dollars, but everyone agreed that tens of millions, at least, would have to be expended here.
As for the security of personal data, the committee agreed that before a driver's license would be issued that complied with REAL ID, the Department of Public Safety would certify that any database or other record-keeping system that included information about Minnesotans would be secure from unauthorized disclosure. The committee agreed that their language wouldn't prevent any future improvements or enhancements to the ID cards or the state's record-keeping system.
The tone of the meeting was notably positive, with the members explicitly working to alleviate the concerns of the Governor's office while establishing sensible protections for their constituents.
Bit & Pieces
Congratulations to one of the best PR pros in town. Jake Reint of Weber Shandwick has been promoted to vice president. Reint will continue to manage his existing clients while overseeing the development of the award-winning public affairs practice. Reint will also lead the agency's growing corporate, community and public affairs practice.
The "Voting Justice, Voting Hope" conference is this weekend at the Depot in downtown Minneapolis. The Conference will discuss Progressive Christian Faith and the critical issue of politics and faith. Presenters include Christian leader Jim Wallis, editor of the Sojourner Magazine Ray Suarez, PBS correspondent Jim Lehrer, and Rabbi Michael Lerner. Registration is $95 and may be done by visiting the previous link.
Former DFL Senate Majority Leader John Hottinger was named the spokesperson for the Power 2 Change Campaign for the Sierra Club's Minnesota North Star Chapter. The Power 2 Change Campaign seeks to educate the public about what is at stake in the 2008 elections when it comes to clean energy policy. The North Star Chapter is also holding "Campus 'Future Energy' Tour" on Monday April 14th. The event is from 9:30 a.m. until 1:00 p.m. and will be hosted by Hottinger. The tour will allow participants to learn about efforts being made by Minnesota campuses to move towards sustainability and research and technological advancements on our college campuses in the field of clean energy.
Three presidential finalists have been named for Minnesota State University Moorehead. The three are Stephen Jones, chancellor of University of Alaska Fairbanks since 2004, Jerry Samples, vice president of academic affairs at the University of Pittsburgh Johnstown, and Edna Szymanski, senior vice president for academic affairs and provost at the University of Maine, Orono. James McCormick, chancellor of the Minnesota State Colleges and University Systems, will make a recommendation to the Board of Trustees April 16th.
The nineteenth annual Transportation Research Conference sponsored by the University of Minnesota's Center for Transportation Studies has been scheduled for May 20th and 21st. The event will be held at the St. Paul River Center and is intended for policymakers and practitioners from state, local, regional and national government, private industry and nonprofit representatives along with faculty staff and students from colleges and universities. Keynote speakers include Tyler Duvall, Assistant Secretary for Transportation Policy at the U.S. Department of Transportation and Stephen Schneider, professor of biological sciences at Stanford University. for more information visit the PIM events calendar.
The John Dewey Lecture series latest installment is April 15th at 12:15. This lecture by Angela Harris, professor of law at the University of California, Berkely, is entitled "The "L" Word: Love in Restorative Justice Movement and in Legal Theory." Lunch in the Lindquist and Vennum conference room will follow the event.
The GOP National Convention, St. Paul Pioneer Press, Microsoft Corporation and Qwest Communications International, have announced their sponsorship of an essay contest entitled "Wave the Stars & Stripes Essay Contest." The contest, open to kids in grades 7-12, must not exceed 500 words and should answer the question "what does the American Flag mean to you?" Entries will be collected electronically through gopconvention.com and twincities.com.
As the Stanley Cup Playoffs kickoff, the RNC and DNCC are facing off along with the Wild and Avalanche. The first round Western Conference match up features the cities hosting the two main political conventions this summer and bets have been placed. The RNC, backing the Minnesota Wild, stands to win Colorado-raised beef steaks if the Wild are victorious and the DNCC looks to grab an assortment of fresh Minnesota Walleye if the Avalanche can manage the upset. While we here at PIM try to remain officially neutral on the gambling practices of political conventions, off the record, we're hoping the RNC whoops up the DNCC like Derek Boogaard on Ian Laperriere.
PIM staffers are willing to wager that the coming of spring will be a welcome change for everyone across Minnesota. What better reminder of spring and summer than golf and BBQ! Well, Minnesotans, you are in luck. The 19th annual AgPAC Golf Tourney and BBQ is now open for registration. The 18 hole shotgun tournament and BBQ is June 16th at Valley View Golf Club in Belle Plaine, Minnesota. Anyone interested should register at the AgPAC website.
Jim Gelbmann, former committee administrator for the Minnesota House of Representatives' Higher Education and Workforce Development Committee, has been named to the position of Deputy Secretary of State by current DFL S.O.S. Mark Ritchie. Gelbmann will officially join the office on April 16th.
Finalist have been named by Gov. Tim Pawlenty for judicial district vacancies. For the third judicial district in Freeborn County, they are Karyn McBride, assistant Freeborn County attorney, Steven Schwab, Albert Lea city attorney, and David Walker, assistant Freeborn County Attorney. The finalists for the third judicial district in Winona County are, Nancy Bostrack, assistant Winona County Attorney, Daniel Heuel, attorney and partner at O'Brien and Wolf, and Lisa Swenson associate attorney at George F. Restovich and Associates.
Credit Crunch Crashing Corporate Cash; Venture Capital Vending Funds For Very Voluminous Opportunities
Solid
Minnesota businesses are getting hit by a worsening economy and the
ongoing Wall Street credit crunch, which makes it much harder to round
up cash for big investments. There's a new proposal dubbed the Minnesota Small Business Investment Act (HF 3538/SF 3271) by Rep. Ryan Winkler (DFL-Golden Valley) and Sen. Tom Bakk
(DFL-Cook) which aims to spark direct investment from venture capital
groups into Minnesota businesses, and provide tax breaks for
investors. At the House Taxes Committee hearing, PIM was curious about why Leonard Street & Deinard handed out folders about the program under the firm's own letterhead, as opposed to the client's (which is typical practice). LSD's Paul Cassidy filled
us in. Enhanced Capital Partners hired LSD to push
the Minnesota version of the plan. The other major firm, Advantage Capital, has registered its vice president, Jeffrey Craver,
based in St. Louis, to lobby here. The firms have worked together for
the better part of a decade, but have never formed an association;
hence there wasn't any organization to put on the letterhead.
With Wall Street's
credit
system becoming more garbled and chaotic every week, finding new credit instruments is increasingly critical. A program like JOBZ, which merely offers tax breaks, can't break the credit logjam. Venture capital firms need to find funds that aren't drawn from
the troubled banking industry in order to let businesses get serious investment cash. The main source would be insurance companies that are legally obliged to invest
responsibly. The Department of
Employment and Economic Development (DEED) would certify venture capital firms
to go out, raise $100 million from big insurance companies, and invest
in Minnesota businesses. The insurance companies would get a tax
credit on their investment five years later (in 2013-2016), while their
capital would be put into productive, job-creating businesses. While the tax credits don't trigger for five years, the money is
intended to grow new jobs immediately; it's a market-based solution
which lets the certified venture capital groups select the best businesses.
After the
program is in place, six to ten firms would intend to register with
DEED, which would oversee their work on targeted investments, reporting
their activities annually.
Programs
like this, dubbed certified capital company programs, have been set up
in many other states, including New York, California, Wisconsin,
Missouri and Colorado. In New York, the program has been renewed four
times at $200 million, and in Texas it got a second round of $200
million in support. Delaying the tax credit lets the economic benefits
grow before the tax credit hits the bottom line. It's a "great time" to
try a program like this because the potential economic impact is so
great, Cassidy said. The permitted range of businesses is pretty broad,
which lets the investors select the best ones to invest in. In
particular, high technology, biotech and 'green collar' jobs could
benefit. There's a big slice of the pie set aside for defined stressed
economic areas, including the Iron Range and outstate. While it's an
issue caught in between the tax/budget crisis this year, it should be
attractive to legislators because it offers a direct way to stimulate
real job growth throughout the state by leveraging $100 million of
someone else's money.
Lobbyist Watch
From the Minnesota Campaign Finance & Public Disclosure Board:
Morning Reports
