Budget Forecast

December 3

While much of the nation's economy remains strong, the housing crisis and high oil prices are causing economists to predict an economic slow-down.

As a result, the State of Minnesota’s budget is now projected to have a $373 million shortfall during the current budget period. This deficit is about 1% of the general fund budget.

Since I have become Governor, we have achieved a long-standing goal to move Minnesota out of the top ten in taxes, and have kept a lid on State spending. The DFL doesn’t believe in the value of lower taxes or limiting government spending.

Predictably, their approach in times of deficit will be to increase state spending and raise taxes to pay for it.

We cannot tax our way to prosperity. The best way to stimulate the economy is to leave as much money as possible in the hands of hard-working Minnesota families.

Some relief can come in the form of closing a tax loophole for foreign corporations. This is a fair thing to do and brings Minnesota in line with how the federal government taxes such corporations.

Every time the suggestion is made to close this loophole, the Democrats want to use the money generated by the change for more government spending. No surprise there. They always want to spend more. I think we should use the money to provide relief directly to Minnesota taxpayers.

But I can’t present our message alone. I need your help delivering our message of limiting government spending and tax relief to legislators. Please visit our Action Center at http://www.timpawlenty.com/ to find out ways you can help.

Thanks!

Sincerely,


Tim Pawlenty
Governor


November 26

This afternoon I announced my selection of Chris Dietzen to serve on the Minnesota Supreme Court.

Judge Dietzen has a long and distinguished career as both an attorney and as a judge on the Minnesota Court of Appeals. He is a graduate of Gonzaga University, where he also received his law degree. For more than 30 years, he practiced law specializing in civil litigation and has served on the appellate court since 2004.

He has proven himself to be a strict constructionist who follows the rule of law with impartiality. In a time when legislating from the bench has unfortunately become more commonplace, Judge Dietzen has continually used judicial restraint and common sense in his opinions.

His strong experience, innate fairness and honest character will serve him well as the newest member of the Minnesota Supreme Court.

Sincerely,


Tim Pawlenty
Governor

Coon Rapids ECM Publishers: Pawlenty Administration presents $51 million veterans package to be submitted to Legislature

by T.W. Budig

ECM capitol reporter

Minnesota Veterans Affairs Commissioner Clark Dyrud styled the proposal “a grand coming together.”

The Pawlenty Administration on Veterans Day (Nov. 12) presented a $51 million veterans package it will submit to the Legislature this coming session.

It isn’t a dream sheet, said Minnesota Military Affairs Adjutant General Maj. General Larry Shellito, speaking at a Capitol press conference.

The 35 initiatives contained in the proposal emerged out of a collaborative process, he explained.

Click here to read the entire story.

Star Tribune: Minnesota Poll: Show of support for Pawlenty

Enjoying his highest approval ratings in four years, Gov. Tim Pawlenty has weathered a politically stormy summer.
By Mark Brunswick, Star Tribune

Gov. Tim Pawlenty appears to have weathered some of the most tumultuous events of his tenure, with 59 percent of Minnesota adults approving of the job he is doing as governor, a new Star Tribune Minnesota Poll shows. It is his highest approval rating in the poll since February 2003, shortly after he took office.


Click here to read entire article.

Fox 9 News: Pawlenty Proposes Small Business Assistance for '08 Session

ST. PAUL, Minn. -- Rural Minnesota small business development is the first major initiative proposed by Gov. Tim Pawlenty for the 2008 legislative session. On Tuesday, Pawlenty outlined SEED -- his Strategic Entrepreneurial Economic Development program.

SEED is a combination of tax credits, loans, grants and other capital assistance to small business owners in Minnesota. Pawlenty will ask the 2008 Legislature to approve and pay the program with $20 million from the state's general fund and another $50 million in borrowed money.

Click here to read the full article.

KARE 11: Pawlenty announces state loans for Mesabi Nugget plant

(Associated Press) Governor Tim Pawlenty said state agencies will lend $26.5 million to the Mesabi Nugget plant on the Iron Range, calling it a "transformational moment for northeastern Minnesota."

He signed a $16.5 million loan from the Iron Range Resources Board in Eveleth on Thursday and said the project will also get $10 million from the state Department of Employment and Economic Development.

Click here to read the full article.

Governor Pawlenty Signs Flood Relief Bill

Just before 3:00 AM this morning, Governor Pawlenty signed the flood relief bill passed in the one-day special session.

As reported by the Pioneer Press, the bill includes:

- $51 million to repair and replace roads and bridges.

- $38 million for other public infrastructure projects, including repairing local sewer and water systems, city and county buildings, municipal utilities and state and local parks.

- $35 million in grants and loans to small businesses.

- $16 million in low-interest and forgivable loans to individual homeowners.

- $1 million for property tax abatements for flooded homes and businesses.

- $584,000 to clean up and repair schools and provide aid to offset pupils who left school districts after the flood.

Click here to read the rest of the Pioneer Press article.

Governor Pawlenty Calls Special Session

The State Legislature will convene at 5:00pm Tuesday for a special session to provide aid needed from the recent droughts and flooding in Minnesota.

Click here to listen to the press conference, via MPR.