By Forrest Adams

On Monday, with the state government facing a projected $1.2 billion shortfall in the 2010-11 biennium and a $5.4 billion deficit in the next biennium, local legislators called for spending cuts. All three Republicans from Carver County — Rep. Paul Kohls, Victoria, Rep. Joe Hoppe, Chaska, and Sen. Julianne Ortman, Chanhassen — were in one accord, voicing that the state “can’t spend what we don’t have,” in the words of Hoppe. Ortman, the ranking Republican on the Senate tax committee, predicted a “very difficult road ahead.”

Kohls, an advocate of a state spending freeze during the last session, took part in a rally at the state Capitol rotunda to support a spending accountability amendment proposed this summer by Republican Gov. Tim Pawlenty. Kohls is the House sponsor of the amendment, which would limit the state general fund budget to the level of revenue received during the previous budget period.

“It’s time to send the liberals here in St. Paul a message that ‘enough is enough.’ When you’re in a hole, stop digging. When you’re out of money, stop spending,” said Kohls, who serves on the House Tax Committee and, until October was a gubernatorial candidate.

Pawlenty has suggested the amendment be put to a 2010 statewide vote. Before this could happen, it would need to pass through the DFL-controlled state Legislature. Minnesota Democrats are far from persuaded this is the right solution to the state’s budget woes. In a press release on Monday, party chair Brian Melendez said the “amendment would devastate Minnesota.”Ortman and Hoppe, who is on the House Ways and Means Committee, responded to a questionnaire from the newspaper on the projected deficit.

Q: In response to the projected $1.2 billion deficit in 2010-11, Gov. Pawlenty requested that legislative leaders start committee hearings immediately to craft budget reductions that could be enacted promptly at the beginning of the legislative session that gets underway on Feb. 4, 2010. What is your opinion of the governor’s request?

Rep. Hoppe: In light of our economic situation, it seems prudent to ask the Legislature for their input on balancing the budget. I think that we need to realize that the state won’t be taking in the same levels of revenue that we have been in recent years and adjust our spending accordingly. We can’t spend what we don’t have.

Sen. Ortman: As a state we have a very difficult road ahead. We have a $1.2 billion deficit in this biennium, but the deficit balloons to $5.4 billion in the next biennium. Our entire state budget is only $33 billion, so deficits in this range are truly enormous and unprecedented.

Q: What role do you see yourself playing in upcoming committee hearings?

Hoppe: I’m willing to work with anyone to solve our budget problems. I have talked to a number

of my colleagues on both sides of the aisle about solutions both for this biennium and long-term fixes to our revenue shortfalls.

Ortman: The greatest challenge in this biennium is that our $1.2 billion deficit is caused primarily by far lower-than-expected income tax collections (lost jobs, reduced hours, overtime cuts, underemployment, etc.). Raising taxes to fill this large a budget gap is not a viable option, which leaves little choice but to decide on our needs and priorities and cut everywhere else.

Q: “Approximately 70 percent of the shortfall is due to lower-than-projected income tax receipts. State wages make up about 75 percent of the state’s income tax base; however, wages are on track to decline by 5.5 percent in 2009 compared to 2008” (Minnesota House of Representatives Public Information Services). Taking this into consideration, how do you see yourself contributing to a solution that is equitable to the people of Minnesota?

Hoppe: In order to fulfill our constitutional mandate and balance the state’s budget, cuts are going to have to be made. I think that people understand that we don’t have as much tax revenue coming in so we can’t spend as much as was projected. Unlike the federal government, we cannot deficit spend. As far as a long-term solution goes, we need to decide what our priorities for spending are, at what level we feel they need to be funded and how that fits in with anticipated future revenues.

Ortman: Our Constitution requires that we balance our budget each biennium, and as we have already drawn down our reserves, and shifted funds in every way possible, we are simply out of everything but tough choices. Cutting government spending is no longer an option … it’s a constitutional requirement. Yet the better we manage this task this year, the better off the entire state will be in the next biennium, when we will no longer have $2.5 billion in federal economic stimulus money to supplement our own health care funding programs.