Pawlenty unveils deep cuts to balance the budget

Gov Pawlenty is showing he is not afraid to make the touch choices and understands the way to get business and the economy moving is through tax cuts. That will give business more money to invest and hire more people. Smaller government with tax cuts are the roadmap out of a recession.

Now the ball is in the Minnesota Democrat legislature's court so we will see what they have planned to continue to grow government and how they like business tax cuts. Our guess is not well.

Pawlenty unveils deep cuts to balance the budget
The governor's proposal hit hardest at aid to local governments and health and human services. He also proposed corporate and small-business tax cuts

By BAIRD HELGESON and RACHEL E. STASSEN-BERGER
Star Tribune staff writers
Last update: February 15, 2010 - 3:20 PM


Gov. Tim Pawlenty presented a supplemental budget Monday morning that outlines how he wants to erase a $1.2 billion state budget deficit.

Aid to cities, counties and health and human services took the deepest cuts in Pawlenty's proposal.

The governor, who is in his last year in office, pledged to protect programs for the military, veterans, public safety and money for K-12 classroom education.
According to the governor's office, the budget proposal cuts $250 million from aids to local units of government; $347 million from health and human service programs; $47 million from higher education funding, and $181 million from state agencies and other programs.

The proposed budget balancing reflects the need to refocus state spending away from areas the state has traditionally held in high regard, Pawlenty said.
"As we have this debate about recalibrating our state policies, we need to balance them in favor of areas where we are in obvious default or deficit or misdirection, and that is we need to improve our job climate and our business climate," Pawlenty said.

Along with cuts, the governor's proposal includes a 20 percent reduction in the corporate tax rate, which would cost the state $10 million through next year and $150 million in the following two years, and a 20 percent reduction in small business taxes, which would cost the state $118 million in fiscal years 2012 and 2013.

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