(00:00:07) a public affairs presentation of Minnesota Public Radio Live from the state capitol in st. Paul Minnesota Public Radio presents Governor alkies State of the State address to a joint Convention of the Minnesota Legislature. This broadcast is made possible with the financial assistance of the Minneapolis Tribune. I'm Bob Potter reporting from the gallery of the Minnesota house chamber following the governor's address. My colleague Pat Kessler will be on the house floor to get reaction to the speech from Key members of the Minnesota House and Senate this joint meeting of the House and Senate convened about 12 minutes ago joint conventions are traditionally held in the house chamber, which is significantly larger than the Senate facility if all members are here, there will be 201 legislators in the chamber 134 from the house 67 from the Senate. This address is characterized by ceremony and pageant members of the Minnesota Army and Air National Guard are present outside the entrance to the house floor and gallery one story above it admittance to the event is By Invitation Only As the dignitaries arrived. They are announced at The Well of the house chamber by Sergeant at Arms Lori Bothwell, he has announced now the arrival of Governor Al quie and he is being escorted to the front of the chamber by a committee of ten legislators by from the Minnesota house five from the Minnesota state senate. Also in attendance at this event by tradition of course are the Constitutional officers of the state of Minnesota the Attorney General the Secretary of State the auditor and the treasury members of the Minnesota Supreme Court that when escorted to the front of the chamber chief justice Roberts Sharon joining the Constitutional officers on the diocese and joining the Speaker of the House of Representatives. Harry sebum is the president of the state senate Senator Jack Davies both of those gentlemen elected yesterday during the opening formalities of the Minnesota Legislature. Members of the Supreme Court and guests I present to you the governor of the state of Minnesota The Honorable Albert H Qui that introduction by the chairman of this convention the speaker of the Minnesota House of Representatives Harry sieben. And here now is Governor elk. We for his State of the State address. Mr. President Mr. Speaker Chief Justice of the Supreme Court associate justices members of the 72nd legislature fellow constitutional officers governors distinguished guests friends fellow minnesotans Let me welcome you back. I'm looking forward to this legislative session as I'm sure you are we have many decisions to make they will not be easy. They never are but we will have a lasting impact on the future of the state. This year the State of the State message cannot be given without looking at the state of the nation. We are gathering at a time of great uncertainty and unrest. Daily, we watch the indicators. How deep is the recession when will we start coming out of it? And how fast? We try to read the signs. We remain fundamentally hopeful, but realistically cautious. For we are still feeling the pain of a great economy struggling for a new life. We have seen prime interest rates or two more than 20% a major auto manufacturer faces bankruptcy a sharp rise in unemployment a decline in average weekly earnings a continued rise in the Consumer Price Index and drastic declines in new housing the Middle East crisis again threatens. Our oil supplies petroleum prices are increasing energy. Rich States beckon industries from energy poor states. The recession has also heard state and local governments two years ago the state and local governments Across the Nation had an annual surplus of 4.2 billion dollars and now just two years later. It is predicted. Their combined deficits will exceed 15 billion dollars. Minnesota has not been spared the effects of this recession. Since we met just nine months ago many of our people have been through difficult times and it's not over yet. I found it necessary because of falling Revenue receipts to fulfill my constitutional responsibility to cut back State spending by 195 million dollars for this fiscal year. If a majority of you and the legislature come up with a different way to handle the shortfall, I'll be glad to work with you to find a nimac about solution for the good of the people since we still have six months till he under the biennium. This recession has meant for our citizens have had to tighten their belts and to live within their means is it any wonder that they expect the federal government and the state government and local government to do the same? That is why the most important message that can come in this state of the state and the most important accomplishment of this legislation would be this guarantee. No action by this legislature, which will increase the income or sales tax rates. Nope. No action, which will cause property taxes or other taxes to rise faster than the rate of inflation over the biennium. Let me tell you why I feel so firmly that we must make this commitment to our people first. This recession has hurt when people are working hard just to make the house payments and pay the grocery bills is no time to increase their taxes. Keep in mind that if we compare the fall of 1979 the fall of 1980. The actual number of jobs available is down 1.3% Keep in mind that Minnesota is 19th among the states in per capita income but 8th in the nation for his total tax burden and 45th, when comparing personal income remaining after state and local taxes. We have the third highest personal income tax before indexing and the fourth highest corporate income tax before 1979 before we indexed our state income tax minnesotans income taxes went up more than a third faster than their income money came into the state coffers as so fast than the 1978-79 biennium Minnesota state government spending grew by twice the rate of inflation. Such a practice had to stop or Minnesota state government spending would continue growing at an astronomical rate. We should bear in mind that in the last 14 years State spending has doubled three times. That is why I made indexing the income tax one of the priorities of my campaign. That is why I continue to believe that the adoption of indexing is one of the most important tax reforms in Minnesota's history. And that is why I will resist any efforts to abandon indexing. This mechanism spreads the income tax brackets so that people whose incomes go up at the rate of inflation state within the same brackets. Now when confronted with requests for new programs, we have to make the choice openly do we want to raise taxes and expand services or do we not raise taxes? And basically let government grow at the rate of inflation. We face that decision this session and it will not be an easy one. There are still decisions to be made on the budget and I will announce those in my budget message in three weeks. In the meantime. There are many optimistic science for Minnesota's future that should encourage us. We need a larger view of our state's future than one which looks only at the next budget period consider agriculture which accounts for about 45 percent of Minnesota's Gross State production food is one of human beings most basic needs. We have a tremendous future as the the demand throughout the world increases for food and fiber but one of the areas of concern for agriculture is transportation, if we produce food and the world needs it no one will benefit if we can't transport the goods over the highways and the rail and the water in here. I mean the port of Duluth Superior and the Mississippi River I have appointed a task force on highways for economic Vitality to review Transportation needs and funding this finished his work and will soon send us report to me. I'm also waiting for a report from your legislative select committee on Transportation. As soon as your task force has reported. I will call the two groups together to resolve any differences and then make my recommendation to you. Minnesota's future also holds bright prospects for dramatic growth that are high technology Industries. Futurist predict that the United States is moving to an Information Society based on very sophisticated or high technology as one informed Observer recently said the United States is rapidly shifting from a mass industrial society to an Information Society and the final impact will be more profound than the 19th century shift from agricultural to an industrial society. Minnesota's computer industry will have a key role in the development of the Information Society and several Technologies. Not just computers. Minnesota will also grow as a national or International leader. Technology intensive Industries provide the state with a broad and resilient economic base of high-quality jobs for our citizens. Minnesota is generating small technology Industries at a rate two to three times the national average. There's not only produce. These will not only produce exciting jobs for minnesotans. But also will Assure America is position as the leader in technical production throughout the United States. We see five technological centers Boston the Washington Baltimore quarter the triangle area of North Carolina Dallas Houston, San Francisco in the midwest. There is no such center with our Industries and with the great research and teaching resources of the University of Minnesota Institute of Technology. We can become the center in the Midwest. We have a tremendous opportunity for new jobs in these high technology Industries and significantly as we seek to meet our social responsibilities. We should remember that these companies have shown they can serve the central cities and reach the minorities and the disadvantaged. in another area Minnesota's Timber resources. Also give us a great cause for optimism for the future more than 17 million Acres of our state is wooded. That's fully a third of all the land in Minnesota and almost 40 million acres are commercial Forest administered privately and by state and federal and County governments Timber production and subsequent harvests can be substantially increased with improved Timber management, according to the University of Minnesota School of Forestry. Minnesota Force production can be increased by 25 to 40 percent. I'll be recommending significant steps to improve Forest management. I want to come in the legislature for the important steps taken by your legislative Commission on Minnesota resources because of your efforts. We are ready for the next step when expanding the production and the Harvest of the use and the jobs that will come with a development of our Timber resources. Now as we take a broader, look at Minnesota's future, let us also remember that we are one of the most minerally rich states in the Union. Minnesota has 25% of the nation's known copper resources 12% of the world's known nickel reserves are mines produce 75 or 70% of the United States taconite and iron ore and Minnesota has the only known Cobalt deposit in the nation. And even though Northeastern Minnesota has recently had economic difficulties because of the slowing and demand for steel think of what the problems would be without the research of dr. Ew, Davies of the mineral resources Research Center who developed the process of utilizing taconite. For a decade, we have neglected mineral research. We must reverse that neglect and again support adequate minerals research and just as the taconite tax policy created that major Minnesota industry. We need tax policies for other minerals and particularly for the mining of copper and nickel the development of our mineral resources can be of dramatic benefit to the people of our state but we must extract and process those minerals in a manner which protects the high quality of our environment. I'm maintaining the quality of life will also help keep strong and other key industry tourism which depends on the great natural beauty of our state 1980 tourism contributed to billion dollars to our economy employed a hundred twenty thousand minnesotans gave us a hundred thirty million dollars in tax revenues. We should not forget the contributions of this industry and our Department of Economic Development will maintain strong support for tourism. I mentioned petroleum prices and supplies earlier, but there are some points of optimism about energy. A crude oil pipeline from the south adequate for our needs is being constructed now and will be completed by this fall if Canadian Oil is cut off in the future. We will have the means of bringing crude oil into Minnesota. We have been successful in maintaining first priority for my Canadian Oil money is coming in for development of alternative fuel. We will be making Headway and District heating conservation efforts are paying off both and heating and in transportation demand for gasoline is down 7% in the demand for fuel oil has been reduced 12% Let me also note that as we continue to be concerned about the problem of jobs leaving Minnesota for the energy-rich Western States. We should not forget that the western states are short of water. Minnesota is blessed with an abundant Supply a good water. That should give us special incentive to make certain that our water is conserved and kept clean. Finally, we must never neglect our most valuable resource our children or forget the state's responsibility for their education. As I have said before one of the most difficult decisions made during my Administration was to cut state aid to Elementary and secondary schools. When our revenues fell last summer the impact of that cutback however was cushioned substantially by the fact that most schools could draw on reserves that they had accumulated when the 89 million dollar cut back was announced. It was estimated that school districts had 285 million dollars in reserves. These were of course accumulated and varying amounts by District. It should be kept in mind that the average amount of the rescission equal $97 per pupil unit. However, 83% of the school districts with over ninety one percent of the students had reserves in excess of $100 per pupil unit. Frankly the main concern I heard when I announced a cutback was not just the impact of the cut this year but as potential impact in future years. Let me repeat my pledge. I will recommend that we restore the base to the level before the cut in each year of the next biennium and I will recommend that we increase the states share of Aid to education by the rate of inflation. These recommendations will give education the largest dollar increase in the history of the state. Father Mayer had like to point out that the actions of the last legislative session reduced the local effort in fiscal 1982 from 26% the cost of Education to 19.3% In other words the local property taxes for operating schools raised four hundred and twelve million dollars in fiscal year 1981, but will we reduce to 331 million dollars in fiscal year 1982. This means that the state will pay 80% of the cost of education and local property taxes will fund 20% Now this funding relationship goes well beyond the intent of the Minnesota Miracle to have the state share 70% of Education costs. So we must review this funding relationship in the context of a commitment not to increase income or sales taxes and not to have property taxes rise faster than the rate of inflation. With this obligation, there is no room to fund my proposal to improve education in the kindergarten through 3rd grade. Explicit State funding for that concept will have to wait but I will continue to urge that parents and teachers become stronger Partners in the child's learning process that schools hold down class size in the early years to provide for more individual instruction and that we continue to seek environments free from disruptions which impaired students learning. What we now begin the session of the Minnesota Legislature as we take up the task of shaping the future of our great state. Let us be mindful of our past. Let us remember our forefathers who worked to build this great state. They farm the land laid out the roads built the port's mine the ores developed the technology. They have given us a great state strong diverse able to provide good jobs for our people. And true we are in troubled times, but we know that our parents and our grandparents suffered hardships far greater than we have now. Their material goods were less foremost the physical work was harder and their lives were shortened by disease. We must also remember that during those same years men and women have come to these Halls setting aside personal gain to seek the public interest. They have given us an outstanding school system an extensive Park system abroad transportation system compassionate social services and a national reputation for good government the challenge before this legislative session is to respect the contributions of the past Century made by millions of private citizens and thousands of public servants and build on their heritage. This is an awesome and never-ending task one that calls forth the best in as all do we have what it takes are we equal to it? Well, can there be any other answer worthy of us than yes. Yes, we can do it if we have faith in ourselves faith in our fellow man and Faith In Our God. Yes, we can do it if we aspire to work at it aspire to fulfill our responsibilities aspire to achieve our ideals. Yes, we can do it. If we care care for those who are different those less fortunate here for the impact our actions have on our own families and on our children's children. Yes, we have what it takes if we care enough to work together to get it done. And there you have it the State of the State address by Minnesota Governor Al quie endeavored to a joint meeting of the Minnesota House and Senate the governor shaking hands now, we'll see President of the Senate Jack Davies and Speaker of the House are receiving knowledge in the Applause from the Constitutional officers who are at the - with him along with lieutenant governor. Luang Berg Supreme Court Justice chief. Justice Roberts Sharon. There are five former governors of Minnesota who were this addresses. Well three Anderson's Wendell Anderson Elmer L. Andersen see Elmer Henderson also held the vendor and Carl robot. Slowly making his way out of the house chamber stopping to shake hands with members of the House and Senate are here and listen to this address. In the speech the governor outlined some of his concerns for the 1981 Minnesota legislative session. We talked in general terms about the state of the economy and concerns about the budget which indeed will be the major focus of concern a little bit later in this session. The specifics of the governor's proposals. Will of course be presented in his budget message which will be delivered to another joint Convention of the legislature in about three weeks The Joint Convention of the legislature now about to adjourn and as soon as it does our reporter Pat Kessler will be on the floor to get reaction to the address from some of the top leaders of the House and Senate who are still on the floor this afternoon. The governor in his address talked about the state of the national economy and how it affects the state of Minnesota said the most important message. The legislature can convey is not to raise income and sales tax rates and no property tax rates beyond the general rate of inflation. Here's Pat Kessler now lie down on the floor with some reaction at Bob and at the front of the chamber's with the minority leader of the Minnesota Senate Robert Ash back Senator ass back first your general reaction to the governor's speech. Well, it was nice to hear an old note of optimism and Hope and Faith in the future for our state second. I was pleased to hear there's not going to be a tax increase and third he listens priorities education among the top with adequate funding as much funding to ever had in the past and more. I was very pleased with that briefly about the taxes. He said that he didn't want a sales tax increase or an income tax increase. However, he seemed to leave the door open about Property taxes. He says Rising with the rate of inflation is that indicate to you that property taxes will be going up. No on the contrary. He's proposed hundreds of millions of dollars for a property tax relief and have local property taxes go up. It has to be up the local units of government that Levi them. Does it seem to you that because of the budget deficit that we will see higher property taxes in the smaller towns around Minnesota on the contrary. I think that's up to local units of government because he intends to increase the amount of age for property tax relief. Thanks very much minority leader Robert - back of the Minnesota Senate Bob. I'm going to step back just a little bit here and finds and what is the Warrens Benes orange banishes the right attorney general warrants panis your reaction to the governor's message. You are a possible opponent of Governor Al cui's in 1982. What was that trusting speech is obviously there wasn't a lot of specifics in there and all of us are waiting for the budget message three weeks from now, too. Find out more what his actual programs are going to be but obviously he's aware of the problems and he was talking about the fact that Minnesota was basically a victim of the federal economy and part of that obviously is true. But part of it of course is is just what I feel some policies that perhaps haven't worked out as well as all of us would have hoped and and so all in all I think that it's premature to say too much at this time until we see exactly what he wants to do with his in his budget message as I mentioned before you are possible opponent of Governor elk we reporter seem to come to you all the time and ask you give you a chance to make news here. What are your plans? Well, obviously this is not the time or place to talk about that. I think that the important thing here today was the governor's speech and it was an interesting speech and and you know, we've got Strahan through a two-year presidential campaign. I don't think anybody wants to start talking about campaigns not at least for another year yet. Great. Thanks very much. Attorney. General Warren Spanish Bob again. I'm stepping back. Once again. The majority leader of the Minnesota Senate is behind me Roger Mo. I'm going to step into an interview in progress and but in if I can a greater portion of the cost of government services back onto the property tax, that's not particularly good for homeowners across the state. It's not good for agricultural land which is a been experiencing a fairly rapid increase in this valuation sales tax the obvious thing to spread it is to put it on things like clothing and food and medicines with the majority ever go that far. Now what he's talking about the items that he mentioned earlier were things like non-prescription drugs. I think that's a needless and a very painful way to attacks generally older people and poor people who cannot go to the doctor who take the time to go to their local druggist enacts. The drug is for something over the counter that will help them with their particular ailment. So I think that's a needless tax for particularly on the old and the poor. You see in this speech any lines drawn on tax policy between the dfl majorities and the governor at this stage. No, there was a very little in this message that would define any kind of lines whatsoever. I think one indication at least again. It's an anticipation of what he might be saying is that I suspect the governor's going to try to delay a lot of things and wait for us to make recommendations to him. I think that's inconsistent with the pattern of executive officers in the state. He's the governor. I expect his budget message in two and a half weeks to be total and complete based upon the letter of the law and if he doesn't have that will just patiently wait until he presents to us. The governor did say senator that he did not want a tax increase for sales tax or for income tax. However, it seemed that he was leaving the door open on property tax increases he mentioned with the rate of inflation your reaction to that. Well, first of all, you have to read his speech a Little Closer He indicated that he does not want to or will not Advocate and change in income or sales tax rates. That does not mean that you can't generate more taxes under the existing rates simply by spreading it on two more items in terms of the sales tax or making what he refers to as adjustments in the income tax. So I think the governor is playing a little bit of a shell game when he talks about rates. The fact of the matter is if you generate more taxes, it's got to come out of somebody's wallet or somebody's purse also on that school aid item. You're exactly right. I think that he will be advocating a shift back onto the property taxes. And I think that that's a not particularly good for home owners and Farmers across the state is it does it look like we will have a property tax increase this year. Well again again property taxes and no question about it traditionally have gone up. We're hoping that we can access pass a tax policy Layton. That keeps the lid on it somewhat which has been tradition of this legislature at least in the past decade. But of course we're eagerly awaiting the governor's message in about two and a half weeks and we expect him to lay out in that particular proposal what he expects us to look at over the next four and a half months governor. Governor. We did set out some legislative goals yesterday in which she said among other things. He would like a reapportionment commission like the one that was defeated in the Constitutional amendment in the election last fall and a stabilization fund. What is your reaction to those two? First of all, I find the the governor's recommendation for commission to be somewhat inconsistent with his rhetoric. The governor likes to say that the people should participate in the people should speak the people have spoken on that issue. It was on the ballot the the people voted it down. It's the legislators responsibility. The legislature will address it. We intend to address it over the next And a half months and if we have to during the interim and hopefully pass a reapportionment plan in the legislature and place it on it on his desk the hopefully for him to sign either this session or next in the 82 session. So I think that's the proper way to do it in terms of a reserve. I'm unless he can lay out to me and to others where he's going to come up with the dollars to do that sort of thing. I'm a little bit surprised because there really is not enough financial resources around now to do what he's advocating besides. I think that the governor has a reserve he has that but almost a hundred million dollars in the bond Reserve account and that's to me an appropriate Reserve if you recall back in 78 when we had surpluses when the government government of this state was run on a fiscally sound manner. He was very quick to criticize a surplus as at that time as being over Taxation. And now it's somewhat inconsistent for him to Advocate having a surplus. What about setting up a mechanism that would allow Revenue? To go into a reserve fund when they exceed the amount needed to spend Bob. I am going to step back just a little bit here and try to catch some other legislators. So I see Harry sieben the Speaker of the House they're in going to work my way over here and but into a conversation in progress. Standing right behind Harry sieben is the man who I think I was a move in the right direction because she major, you know, the biggest reform in this century and financing education occurred in 1971. It has been refined and improved upon in the nineteen seventy nine tax bill. We improve that we lowered the local efforts share the property tax share the 20% I don't think that was a step in the wrong direction and I don't want the governor to go back and the reverse Direction now back to 70 or lower. Well evidently that's what he's going to recommend in the budget message. Don't think that's gonna fly. Well, the legislature is very concerned. The dfl is at least are very concerned about the effect. Our programs have on property taxes. They can make the state government look good by allowing property taxes to go up can make Governors and legislators look good. Maybe at first blush, but I think people realize that what we do the level that we Finance education and other local units of government has a direct effect on property taxes, and I think It's sinking in Minnesota that that is the one tax we have that's probably least based on ability to pay that's one of our criteria. Through that that shift that you fear over the property taxes will not occur. He did say a lot property taxes go up to the rate of inflation. Do you think that's calling for a very sizable increase? Well, it probably calls for it. If it's just using this year as a base year. He's probably talking about increasing them 22 percent over the next biennium the legislature. No doubt will allow them to go up somewhat no question about it and inflationary times. I don't know if 22% if on a 600 dollar tax bill of hundred dollar increase 425 is as acceptable. That's probably too high in my opinion. I don't know what a consensus of the legislature will be on it were concerned about it. I'm more concerned about whether he's going to use 79 or 80 or or 78 as a base year rather than 1980 or 81 because that sounds to me like what he was talking about, but I'm not sure he was light on specific with that. Would you please well, we we find property taxes. We lowered property taxes in effect that percentage that's paid for education and other local units of government in the seventy nine tax bill that is still taking effect property taxpayers are now getting the benefit of the seventy nine tax bill. This is probably the last year that it will have an effect but nevertheless prior to that time 70% of Education was funded by the state after that 80% was funded by the state if he wants to go back to the 7010 ratio. Maybe he's going to use 79 ER or earlier as a base Year. I'm not sure and I look forward to talking with him about it. I'm anxious to do that would make it higher just well by using 79 is a base year. It would make it higher. Mr. Speaker. It seemed in Governor's but the governor's message State of the State message there weren't very many specifics. The budget message is coming up in a couple weeks. What are we going to what can we expect from that? Well, I don't know what to expect in the budget message. I haven't talked to the governor about it. We're very anxious to work with him on his programs and to cooperate with him as much as we possibly can. We're were as much in the dark about his budget message. As you are at this point. I expect that he's going to allow property taxes to go up substantially over the next two years. That is what the dfl ours are going to be very concerned about and one thing the dfl would resist now. I don't know what the alternative to it is. However in we don't that's one of the reasons we're here is to develop those programs everything we do after the budget message will be compared to the governor's programs and rightfully, so and we're just going to have to wait and see thank you speaker of the house Harry sieben Bob. I see the minority leader in the Minnesota house Glenn Sherwood. I'm going to work my way over here. I think Patti if you were to try to jump over some of those rows of desks. She might have a little bit better luck. I think there are more reporters in here than legislators now rapidly turning into that situation. Yes, although they're pretty Cooperative about staying around to talk with the members of the press. They traditionally like to get a few words in after these speeches the State of the State message today the budget I should also point out here is Glenn Sherwood the IR leader in the Minnesota house in the past when the Minnesota Miracle came about was a 70 to 30 percent split and now we're moving up to the 80 20 point. I don't think anyone really ever intended for the state effort to hit 80 percent or greater, and I'm not sure what this is going to mean but he indicated in his talk that we have to look at that at that split again, and I do know that at least in terms of local school districts that while they they like the state money there. They get nervous when that percentage increases more and more and it seems to carry with it more and more State control over local decision-making. So at some point we have to relook at that at that balance there and I think that's what he's suggesting and I think we need to be more responsible as far as raising money when they know that they are not going to get as much from the state. Then I think there's always you'd have to say that there's always a tendency to be more careful with people's money when the folks are right there looking over your shoulder. And so I think that would be a result of that that is not a reflection on individual local County officers, but it's just a natural tendency that the folks are right there and you're doing your taxes you're going to be you're going to be more careful with it. And I think that's healthy representative Sherwood legislators on both sides of the aisle seem to be talking about property taxes and education because of the speech you indicate that it may be time for the state to take less responsibility and in supporting schools. As far as the money goes now putting that means raising the property taxes for the smaller towns can a lot of them. No, I don't think I want to I don't want to be quoted as saying that that's that I'm encouraging that kind of thing. But I think we have to realize that the the extent to which the state can continue to fund education needs to be looked at in terms of that percentage balance between between the state and local government and we don't want to inflict a high burden upon upon local government or pain school districts, but on the other hand, they have told us repeatedly that they they don't like the state interference in local questions. And the more money that they receive from the state. There's always a question of how much how much we're going to tell them what to do and in the past there was a time when when they were reluctant to see it even reached the 70% level of State money versus 30% And now we're almost on the brink of an 80/20. That's that's what the governor said is that he wants to he wants to review that. I think we ought to review that very little in the way of specific proposals in the State of the State address for the legislators. What can we expect in the budget message you as minority leader in the house are probably working with the governor's. That's all. Well only only at this point working in a general way. I can't speak for the Governor's what's going to be in the budget message, but obviously the specifics will be their relative to where we're going to have to make make these discriminate take place, and that's what everybody's waiting for. Of course. In the meantime. We will be coming up with with some some positions ourselves. And from the IR caucus. Can you be specific about what kind of streamlining we're going to see? No, not yet. But but shortly we will be prepared to do that. Thanks very much representative Glenn Sherwood and Bob. I'll take another walk around the floor. All right pat pat Kessler on the floor getting reaction to the State of the State message today by Minnesota Governor Al quie. I think Pat you've just about covered all of the major figures on the Republican and Democratic sides of the House and Senate and unless you See someone else down there that you have not had a chance to visit with we might begin to think about wrapping up this broadcast. Most of the legislators have now left the chamber. There are a few who are still here. Most of whom Pat has talked with as they continue discussing the State of the State message with news people from the print and the electronic media from around the state of Minnesota. This address of course will be followed in much more specific detail by the governor's budget message, which will be coming to you. We believe on Tuesday January 27th at exactly 12:00 noon that will be an event very much like this one with the members of the House and Senate both here in the house chamber the Constitutional officers the former governors of the state possibly some members of the Congressional Delegation and a number of elected or rather a number of invited guests filling the house and the house Galleries and also lining the house floor to briefly recap the governor's address this noon. He said the most important guarantee that the legislature could make this session would be no increase in income tax rates or sales tax rates and no property tax increase faster than the rate of inflation. Now when you consider that 2/3 to 3/4 of the state budget is returned to local governments. We use that money for schools and Myriad of other programs that would otherwise have to be funded from the property tax. The largest single budget item is of course Aid to Elementary and secondary public schools in his speech. The governor said that the state share of local school costs will reach 80% in fiscal year 1982 leaving 20 percent funded by the local property tax. And that said the governor goes well beyond the 1971, Minnesota Miracle goal of having 70 percent of local Education costs. At the state level. So I think that in that particular statement as well as his comment that this has to be viewed in context with the pledge not to raise income tax or sales tax rates or to let the property tax rise faster than the rate of inflation. We may indeed see a hint as to what we'll see in form of specific proposals a bit later in this month. The governor also said that in the long range state of Minnesota can look forward to some growth in several key Industries, one of them being agriculture, of course, in other the high technology Industries, the governor noted that Minnesota could be a major Midwest center of the high-technology computerized Industries when he says you combine the existing Industries here and the research and teaching facilities at the University of Minnesota Institute of Technology. Such a major Center in the midwest would be possible. That to might be a clue as to what we might find in the governor's budget message possibly some recommendations for specific funding of research and teaching programs or some recommendations that the university do a bit of emphasis in those particular areas the timber industry the governor cited as another one that is capable of some expansion said that Timber production could be increased from some 15 to 40 percent and he said that he will recommend significant steps to improve Forest Management in the state of Minnesota are will undoubtedly be some specific language toward that goal in the budget message as well. The governor also called for more mineral Development in Minnesota, noting the 25 percent of the country's copper deposits and 12 percent the world's nickel Supply appear to be in the state of Minnesota and the Minnesota has the only known reserve of cobalt or the Governor said that mineral growth and mineral research has been neglected over the past decade and he says that it's time to reverse that Trend. He also said the tax policies have to be developed for encouraging the growth of copper nickel mining in particular all of this who says the extraction and the processing of the or must, of course be done in a way which protects the environment in the state of, Minnesota. It would appear based on what we have heard from the governor and from the Republican and dfl legislators that we are beginning to see the lines of battle drawn for this 1981 session particularly over the funding of local schools. And the possible increase in property tax rates at the local level will be hearing a good deal more about those and other matters in the weeks and months to come this live broadcast of Governor. Al quie State of the State message was made possible in part with the financial assistance of the Minneapolis Tribune technical director for this broadcast was Linda Murray with Pat Kessler. This is Bob hotter reporting from Minnesota state capitol. This program was a presentation of Minnesota Public Radio a listener-supported broadcast service.