Pawlenty swings at taxes, teacher pay, health care
By Fritz Busch Journal Staff WriterArticle Photos
NEW ULM - At a listening session Thursday morning with area business leaders at the New Ulm Country Club, Gov. Tim Pawlenty took aim at state taxes, an ever-growing state government, the existing health care system and public education pay.
"We need to cut state business taxes by one-third to one-half over the next 10-15 years," Pawlenty said, at a job growth meeting hosted by Rep. Paul Torkelson (R-St. James) and the New Ulm Chamber of Commerce. "The JOBZ (local and state-tax exemptions for new and expanding businesses) needs to expand in rural areas. It's not corporate welfare."
He called for an investment tax credit for angel investors (affluent people who provide business start-up money, usually in exchange for convertible debt or ownership equity) and rural angel investor cooperatives.
Pawlenty likened the attitude of being resistant to change about the state's high national quality of life ranking with General Motors.
"They were making lots of money during earlier tough economic times, became the world's biggest car company, got too complacent, bureaucratic and less entrepreneurial and enterprising," Pawlenty said. "They went from the top of the corporate world to the third-largest U.S. company to ever go bankrupt.
The governor said the state budget grew nearly 10 percent a year from 1960 until 2002 when he became governor.
"We need to keep a lid on state government to avoid pricing ourselves out of the market," said Pawlenty.
He said high health care system costs break the back of Minnesota counties.
The governor said his health care reform initiatives, which will be considered by the 2010 Legislature, would make Minnesota the first state in the nation to purchase health insurance across state lines to cut costs and improve service.
His other initiatives would require MinnesotaCare (low-cost insurance for the needy) and Medical Assistance to price health care services based on quality and cost and add consumer-driven incentives to MinnesotaCare.
"The current health care debate about creating a federal program is so off track," said Pawlenty. "The federal government is busted now, and we want to give them another program to run? That worries me."
Sleepy Eye farmer Greg Bartz said excessive agriculture regulations like requiring manure-hauling permits hinder the viability of agriculture.
Pawlenty asked Bartz and other farmers to write down specific examples of excessive regulations and give them to him.
New Ulm realtor Bill Koeckeritz said when the public sector grows, the private sector shrinks.
Pawlenty agreed, saying too many public employees get paid for doing nothing.
He said the public education pay system based on seniority and retained since the 1930s should be replaced with a results-based system based on student learning, even though teachers unions don't agree.
New Ulm dentist Kenneth Windschitl said Minnesota's health care provider tax drives dentists to other states where there is no such tax and creates a hostile business climate.
Pawlenty said he adamantly opposed the tax but couldn't get it replaced.
August Schell Brewery President Ted Marti said he'd love to cover his brewery roof with solar panels but the payback is too long.
Pawlenty said solar power will become more efficient and costs will fall in the next few years.
"The state needs more nuclear energy," he added. "We're the only state that prohibits nuclear expansion. Geo-thermal (heating and cooling) makes sense too."
There is enough natural gas to power the U.S. for a century," Pawlenty said. "Plus it's clean and affordable."
Brian Mathiowetz of Mathiowetz Construction said most Minnesota townships, cities and counties buy new vehicles and heavy equipment.
"I'm building your roads with '70s and '80s equipment," Mathiowetz said.
He added that the Minnesota Highway Department used gravel on the State Highway 4 shoulder that was hauled from long distances.
"I've got a gravel pit nearby and never got a chance to bid on it," said Mathiowetz. "The highway department doesn't bid work, and there is no incentive to change."
District 32B Rep. Kurt Zellers of Maple Grove, a GOP minority leader in the House, said the listening session input will be used to help create legislative bills next year.
(Fritz Busch can be e-mailed at fbusch@nujournal.com)
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middleclassworker
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10-30-09 5:37 PM
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This guy is the biggest fraud our state has had as governor in YEARS. My life was much easier before he took office. He didn't do crap for my taxes...but my property taxes and other state "Fees" sure went up. I can't wait until he leaves office.
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