April 23, 2009 at 7:10 a.m.
Local business community, Rep. Party activists welcome Gov. Pawlenty to Wyoming event
The governor took a few questions from the audience. Larry Porter, of the Forest Lake Athletic Association, commented that charitable gambling is "the highest taxed" enterprise in Minnesota and asked Pawlenty to do what he can about it because the tax is hindering non-profit and civic organizations.
Pawlenty explained how the state is freezing some state employees' wages and getting voluntary furloughs. He told the audience that if their county, city or school district are currently approving any pay raises, "...tell your elected officials they are out of step" with what the rest of the world is doing. "I can't force your county or city to freeze wages," Pawlenty added, it's up to the citizens to let their wishes be known.
On Local Government Aid and property tax caps; which the state can and does control, Pawlenty said LGA cuts were needed for the most part. He said large cities have come to rely on the state for large portions of their budget. LGA was only designed to bolster small cities with few resources to pay for necessary services. What the system has "morphed" into is "kind of strange" the governor remarked.
On the issue of healthcare reform he explained how empowering state employees to make choices in their care plans has reduced the rate of increases in healthcare costs at the state level. Pawlenty said when people are involved in their healthcare ie: through the state "tier" system the costs are "more manageable."
Minnesota, under its Constitution, must balance its budget, and the governor acknowledged this will be difficult. He stressed that we are undergoing a "major economic crisis" and state spending can not continue as if nothing's wrong. He noted Minnesota biennium budgets have averaged 19 percent increases since 1960. Under his term(s) as governor he has held the increases to 8 or 9 percent, and still "...the marketplace is telling us we are already too expensive" of a place to start business and to live.
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