Gov. Tim Pawlenty, in his eighth and final State of the State speech on Thursday, really offered nothing new but rehashed old proposals which have so far gone nowhere.
He called for a focus on the economy and jobs creation, which is important. As the Great Recession deepens, Minnesota must be prepared for a new economy and provide the jobs for that new economy.
Gov. Pawlenty was right in calling for a new way of thinking when it comes to providing state services. "For generations, most Minnesota politicians wanted more taxes because they wanted more government, and they got it," he said. "They believed the presumed benefits of big government outweighed the big tax burdens placed on our citizens and job providers. ... We can't afford all of the spending that's been promised and expected, even if we return to normal economic times."
He's right, but his solution is wrong. The way we budget today is backwards - we decide how much to spend before we know how much we'll take in, he says. But the governor's solution is to call for a constitutional amendment to require that future spending commitments not exceed revenues currently collected. That would effectively shut off any ability to flexibly set priorities and to account for population growth or inflation. Hamstring government by forcing it to shed meat as well as fat is a public disservice.
But Gov. Pawlenty is right that the budget system is backwards. Better would be building a budget from the ground up, justifying each program and expenditure and then setting taxes accordingly. Provide what the people need, prioritize it, and fund it. Provide too little or take too much in taxes, and the elected officials making those decisions are gone in the next election.
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The governor, in his speech, puts too much emphasis on the tax system as the be all and end all in turning the state's economy around. But even he recognizes that it's more than that. "Minnesotans have our little quirks. But we count our blessings by what's really at our core - the character of our people and our magnificent natural splendor." He talks of waiting for the spring ice-out, enduring the winter, love-hate the Vikings and enjoying summer trips to the Dairy Queen.
It's our quality of life, and that doesn't come cheap. It's the smooth roads, the lake accesses, the good schools and colleges, knowing the road will be soon plowed and having a state park to visit within minutes of wherever we live.
Instead, under this governor, we've seen fees doubled and property taxes increased 65 percent, job growth falling behind the national average for two years in a row for the first time in decades, skyrocketing tuition rates and continual budget deficits.
Cutting taxes will only further erode a quality of life Minnesotans demand.
