I was very disappointed recently when Gov. Tim Pawlenty vetoed the tax bill.
Many good components in this bill, including increased Local Government Aid for our towns (over $880,000 for Mankato, and close to $189,000 for North Mankato) and important tax credits for dairy farmers and veterans, were in this bill. Homeowner property tax refunds would have increased, farm homestead and disabled veteran homestead tax valuations would have gone down, Ham Lake fire victims would have received help, tax loopholes for foreign operating corporations would have been closed, and much more.
The governor said that he supported much of the tax bill. In fact, several provisions he specifically wanted were included. He stated that he vetoed the bill because, in the future, the state government would have been required to be consistent and include inflation when predicting expenses as well as for revenue.

A few years ago, the state changed its practice and included inflation for revenue only. This resulted in a false sense of Minnesota’s fiscal forecast and does not serve us well — as was seen in this budget cycle. Without inflation factored in, it appeared as though the state had a $2 billion surplus (by predicting an inflationary increase for revenue only). Once inflation is included for expenses as well, the true surplus is cut in half to $1 billion.
As with our personal budgets, the state budget should include the actual dollars available to spend and the actual cost of goods and services. Minnesota should either include inflation on both sides of the ledger or not at all. This prudent step does not mean that programs would receive automatic increases. It simply ensures that we have a reasonable understanding of Minnesota’s financial forecast. I predict that if you ask your local city council, county commissioner or school board, they agree and use the consistent approach that this bill hoped to restore.
The governor’s veto of this bill, the twentieth veto this session, not only reduces state payments to local cities— it will likely result in another increase in property taxes. The June 1 edition of the Mankato Free Press quotes local officials who indicate that local property taxes will likely increase because of the governor’s veto.
Reducing property taxes was a major DFL goal this session, yet the governor vetoed the property tax relief bills as well. The governor has not served the people of Minnesota well with this veto. It’s time to restore a sound budgeting policy in the state of Minnesota and offer tax relief to property owners, farmers and veterans.

Printed in the Mankato Free Press 6/10/07