Feb 11 Tipping the Balance?

DFL legislators Lyn Carlson and Richard Cohen drafted a bill they say would limit future governors' ability to unallot. According to this Strib article, here are some key provisions of the bill:

Specifically, the bill would limit the governor's unallotment power in three ways:

• Unallotment authority could be used only on the part of a projected budget deficit that was not known at the completion of the last legislative session.
• When the governor unallots portions of the budget, payments must be reduced proportionately, and formulas or eligibility standards may not be modified.
• The governor could not unallot more than two percent of the general fund appropriations and could not unallot more than 10 percent of a single general fund appropriation.

This legislation wouldn't restore balance to the process. It tips the balance to the legislative branch. This legislation would forever give the legislature the ability to force special sessions by playing my-way-or-the-highway politics, which the DFL majority hasn't hesitated in playing.

Hypothetically speaking, had this been law last May, the DFL likely would've forced a special session. It's probable that they would've held out until there was a government shutdown or Gov. Pawlenty signed another job-killing tax increase.

BULLETIN: The DFL doesn't have a good economic track record because they're too wedded to uncompetitive tax rates:

Compounding the figures over the thirteen years assessed in this study, Minnesota has lost $22,703,034,000 in net income and $2,548,131,000 in state and local tax revenue due to out-migration. Seventy percent ($827 million) of Minnesota's anticipated $1.16 billion state budget shortfall in FY 2011 is due to lower individual income tax collections.

"Minnesota should work toward reducing the tax burden via reductions in the income tax which would encourage both people and income to stay in Minnesota or move into the state," said J. Scott Moody, co-author of the report. "Without action by the legislature and the governor, out-migration will surely continue reducing the ability of both the private and public sector to ensure Minnesota's economy remains strong and vibrant."

Where are Minnesota's out-migrants going and why? According to the Internal Revenue Service (IRS), between 1995 and 2007, the top five states are Florida (21,256), Arizona (19,605), Wisconsin (9,449), Colorado (6,894) and Texas (6,551), states with far more competitive state tax structures. Income left Minnesota in every year, even in years when more people moved in than moved out, which suggests that people with higher-than average incomes have been leaving the state.

The DFL's progressive tax policies, coupled with their reckless spending habits, are driving people and their small businesses to other states. It's economic suicide to continue losing this much capital, this much revenue and this much job-creating potential.

We can do better. Most importantly, it's imperative that we do better. That won't happen with DFL majorities in the Minnesota legislature.

It's important that people understand that this legislation won't become law. It's purely political designed to energize the DFL's allies. It shouldn't become law because it strips the executive branch of its options to reign in a reckless and irresponsible legislature. Without unallotment, the legislature could've held out until Gov. Pawlenty signed a job-killing tax increase.

What the DFL legislative leadership hasn't figured out is that this legislation is getting conservatives fired up too. We've noticed that reckless DFL legislators will do anything to raise taxes.

Most importantly, we've realized that the best way to eliminate the DFL's reckless spending is to defeat the DFL this November. That's the only way to protect Minnesota's taxpayers, whether they're small businesses or middle class families, from the DFL's irresponsible behavior.

Comments welcome at LFR.