DFL Legislators tried to raise taxes up until the very last minutes of the legislative session that officially ended Monday at midnight. House leadership had hoped to enact $1 billion in new taxes and $381 million in new Health and human Services spending over the governor’s objection, but the House Republican Caucus held together, standing firm against the two veto override attempts. The Governor has promised no special session and the legislature is adjourned.

 

In a crafty move, Governor Pawlenty signed spending bills, but vetoed the tax hikes. The end result is an unbalanced budget, but with no possibility of a government shutdown like those that resulted from past budget negotiation impasses. With a budget shortfall to rear its head while the legislature is out of session, the governor will have the executive authority to unallot funding to bring the budget into balance. The budget will therefore be balanced via spending cuts without any tax-hikes.

 

The governor had indicated that he’d be willing to work with the legislature on alternatives to solving the budget, but the governor held firm on his word that tax hikes were out of the question. Democrats in control of the House and Senate were completely unwilling to consider any budget solution that didn’t include tax increases, but the governor’s move, bolstered by a cohesive House GOP caucus rendered the tax-raisers powerless.

 

Take Action: Governor Pawlenty has demonstrated an unwavering commitment to hold the line on taxes and brilliant strategic leadership on the budget issue. Contact Governor Pawlenty’s office now to thank the governor for stopping plans for big tax hikes in their tracks.