ewaldatthecapitol June 1, 2007 Ewald Government Relations Team Vetoes, Large and Small Tax Bill Although the Legislature adjourned on time on May 21, many bills made their way to the Governor for his signature, or veto, over the ensuing ten days. Pawlenty line-item vetoed several spending provisions in the E-12 and higher educations financing bills, the Health and Human Services financing bill, and the state government finance bill. He vetoed the entire tax bill on May 30. Included in the tax bill were items like $70 million in local aid to cities, $15 million in county program aid, subsidies for the Mall of America and Thomson West, and financial assistance to Cook County after the devastating fires near the Gunflint Trail. The Legislature added a provision to require the Governor to include inflation in his budget proposals—which Pawlenty had warned them would draw a veto. It was the main reason the entire bill was vetoed. Since the Tax bill was “revenue neutral,” its veto will not put the state’s budget out of balance and therefore precipitate a special session. Governor Tim Pawlenty and House Speaker Margaret Kelliher (DFL-Minneapolis) stated that they do not think a special session is necessary, but that if there was a clear agreement on some technical bills, that they would not rule it out. Below is an overview of the major spending bills that the Governor line-item vetoed recently, as well as his overall veto of the tax bill. Feel free to contact any member of our team: E-12 Education Finance Bill Although the Governor signed the education bill, he said he did so reluctantly. He stated that it did not include a per pupil increase at the level he proposed and that it did not include any real reform or accountability. Governor Pawlenty line-item vetoed funding for the Office of Educational Accountability, a task force on education finance, and incentives for teachers to obtain national certificaContinued on page 2 They said it: “I am supportive of many of the tax provisions in the bill ...unfortunately, the bill contains a policy provision that would put government growth on autopilot.” – Gov. Pawlenty, in his veto message to the Legislature explaining his veto of the Tax Bill due to the inclusion of a provision that would take inflation into account in state budget forecasting. David Ewald 651-290-6276 [email protected] Valerie Dosland 651-265-7857 [email protected] Becca Pryse 651-265-7858 [email protected] Bill Amberg 651-203-7251 [email protected] Eric Ewald 651-290-6266 [email protected] Jens Midthun Intern 651-290-7852 [email protected] Key Legislative Contact Info House Information Office 651-296-2146 Senate Information Office 651-296-0504 State Legislature Website www.leg.mn 1000 Westgate Drive, Ste. 252 • St. Paul, MN 55114 • 651-290-6260 • Fax: 651-290-2266 • [email protected] • www.ewald.com ewaldatthecapitol Continued from page 1 tion. Lastly, he vetoed funding for a merger of the Hennepin County and Minneapolis Public Library systems. line-item veto pen. The Governor vetoed provisions for MFIP spending that totaled more than $9.5 million. In addition, the Governor vetoed outright a bill that would have established a statewide health insurance pool for local school district employees. Additionally, he vetoed more than $2.2 million in funding for public health education campaigns. Higher Education Finance Bill The Governor made a few line-item vetoes on loan forgiveness and internship programs for university students and signed the overall bill into law on May 30. Health and Human Services Finance Bill Gov. Pawlenty trimmed more than $15.5 million from the Health and Human Services (HHS) spending bill with his The Veto The word veto is derived from the Latin word “vetare,” meaning “to forbid.” Translated literally, veto means “I forbid.” Gov. Pawlenty clearly forbade some spending and policy provisions that came out of the 2007 session of the Legislature.
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