(00:00:00) Four degrees above zero winds from the southwest at 8:11 degrees below wind chill. This is a reminder that you're listening to midday on NPR a listener-supported service. (00:00:11) You are tuned to ksjn FM st. Paul and Minneapolis. (00:00:28) from Minnesota Public Radio (00:00:32) Good (00:00:32) afternoon, everyone live from the state capitol. And st. Paul Minnesota Public Radio presents Governor Al cui's State of the State message to a joint meeting of the Minnesota Legislature. This broadcast is made possible in part with the financial assistance of the Minneapolis Tribune. I'm Bob Potter speaking from the gallery of the Minnesota house chamber and immediately upon the completion of the governor's address. My colleague Pat Kessler will be on the house floor obtaining reaction to the governor's proposals from House and Senate leaders from both political parties. The State of the State address is an annual event in which the governor outlines his legislative goals for the year ahead. The occasion is a ceremonial one and follows to the letter a traditional script the House and Senate are meeting jointly justices of the state supreme court the Constitutional officers former governors and the lieutenant governor have all been escorted to their places by National Guard officers members of the Senate arrived about 10 minutes. To noon and the joint convention was called order by the Speaker of the House Harry sieben joining him at the speaker's diocese is the president of the state senate Jack Davies from Minneapolis. Although he probably will not say very much about it in his address today Governor cui has on his desk a major budget reduction and tax increase bill passed by the legislature on Monday. He would announce tomorrow whether he will sign or veto that bill and his decision will have a major impact on the agenda for this legislative session if Governor Qui signs that bill the session can proceed in a normal fashion. But if he vetoes it the financial problems of state government will once more dominate developments at the state capitol. (00:02:17) The (00:02:17) sergeant-at-arms has now announced the arrival of governor cui and he legislators who are forming the escort party have arrived and are bring him in and that Applause greets the arrival of Governor key here in the house chamber. Among the Constitutional officers on hand our state treasurer Jim Lord Secretary of State Joan grow and attorney general Warren Spanish is so far. The only officially announced dfl candidate for governor in the fall election. Several former governors of Minnesota are here for this event as well. Among them. Former Governor Harold stassen our Anderson Wendell Anderson and Harold levander 703 now shaking hands with lieutenant. Governor Lou Wong Burger. And acknowledging the Applause of the members of the legislature and the invited guests here at the Capitol. Here is the introduction now by Speaker Harry sieben. I present to you the governor of the state of Minnesota The Honorable Albert H Qui. How's the governor now shaking hands with house speaker? Sieben and Senate President Jack Davies? (00:03:36) And here he is mr. Speaker, mr. Chief justice. justices fellow constitutional officers members of the 90 or the 72nd State Legislature and Governor's distinguished guests friends and fellow minnesotans. We're gathered here in this chamber. The main people who have the responsibility to solve our present state governments problems and also to chart a course for a better tomorrow and we're finding Creative Solutions. We know that the national economy is struggling and because of this we know that Minnesota's economy is struggling, but we also know that we will rebound from these difficulties and that we will be stronger because of them. And this is as certain as our people strength and our lands abundance and just as certain as the fact that government will not be the same in the future as it's been in the past. In part because of current economic problems part because of economic problems that may persist but in largest part because of winds that awakened the nation the role state government plays will be different. It will be more trusting and the roles local government families and individuals in the private sector will play will be different too. They will be larger. These changes will be good for Minnesota and for our nation. I want to talk this afternoon about these changing roles and my proposals and ideas for enhancing them in the next year the next five years and the years to come. These changes have been spurred nationally and at home by millions of votes and millions of voices. Why do we face our current economic problems will members of both parties don't agree on every point, but there is uniform agreement on the major cause a national recession that's hurting 33 states in the same way. That is hurting, Minnesota. There are additional factors causing our projected budget shortfall farm income is down significantly reducing tax revenues depressing Farm communities and hurting Farm families and state government has assumed too many obligations. We must change the current Arrangement so that local communities have a greater chance to run their own Affairs free of State intrusion. We must look to the Future realistically and responsibly we must change our policies so that we avoid as much as possible again having to make the terrible painful and disruptive choices that we must take now, but more than a change in policy. We need a change in Attitude. Americans have come to realize in a relatively short period the real limits of our present energy resources and the need to conserve them and in the same way that wasting energy was second nature to many of us a few years ago saving energy is now instinctive and we must develop the same responsible attitude towards government and its capacity only in this way. Can we plan wisely the times demand that we do better in providing Public Services the men and women who carry out these services to a commendable often excellent job and our public institutions are not without cause for phrase. We must not fall into the Trap of criticizing and never nurturing them. But the fact remains that government has grown too big and too expensive and we must look for new ways of serving the public new ways that meet our responsibilities as a caring people but ways that halt prohibitive rise in the cost of government and we can find new ways and we are finding new ways the proposals that I will make the this legislature are in six major areas. Number one because jobs mean individual dignity and economic health. I will propose steps to improve the capacity of Minnesota's private sector to create jobs 2 & 2 because we must increase the equity and local responsibility and education. I will propose improvements in the way in which we fund our schools. And three because we must strengthen the relationship people have with local government. I will proposed reforms in the financial relationship between the state and local units of government for because we must show greater trust in the wisdom and compassion of local officials will proposed elimination of stifling State mandates and regulations 5 because we must find less disruptive ways of settling our public labor-management disputes. I will propose changes in the public employment labor relations act so that the public is better protected and six Because drinking drivers are killing innocent people as well as themselves. I will propose a stronger program to end this utterly senseless Carnage by getting them off the road. Well, let me describe these initiatives and greater detail. First the legislation I propose will mean more jobs for minnesotans and jobs jobs jobs there what we must have or else everything falls apart individual lives are paid families break apart and the economy collapses and I'm determined that we do all we can to assure a good future for Minnesota's working men and women. Let us lift the burden that we have heaped on the private sector so that we can free the creativity and Industry of our people my program for improving our job climate includes the following points. The first is to bring our workers compensation system into competitive posture with those of our neighboring states. This can only be done through a substantial change in the benefit provisions of Minnesota's workers compensation law the report presented to the legislature Yesterday by insurance commissioner Michael Markman recommends. This change is the only way to bring our system into line with those of our neighboring states. We must control costs for employers while fully maintaining a workers compensation system that provides adequate benefits paid promptly and equitably to men and women injured on the job. Second is improve our unemployment compensation system so that it doesn't run it a deficit as it now does and so that it doesn't have to borrow from the federal government as it's done for years. Our current system is forced to do this despite. The fact that our unemployment rate is significantly lower than the national average. My proposal will lead to a solvent trust fund a more equitable distribution of costs based on Direct experience of employers and assurance that workers who lose their jobs will be treated fairly The Proposal will also encourage unemployed workers to obtain suitable employment as soon as possible several points of my job climate proposals call for eliminating obstacles to job growth and Minnesota's tax system changes would take effect in the next biennium. We must recognize the importance of small businesses in the creation of new jobs for this end. I recommend that we reduce the corporate tax rate to 6% on the first one hundred thousand dollars of income the second text change. We must reduce commercial industrial Texas. Now recommend that the first $50,000 of commercial industrial market value be assessed at a reduced rate of 30% 25% of the commercial industrial property in the metropolitan area and 40% of says property in the non metropolitan area of Minnesota's have property values of below 50,000. And we must bring three additional taxes into Conformity with Federal schedules to capital gains taxes the estate taxes and the depreciation rates. I will also recommend to initiatives that recognize the important role played by high technology and Minnesota's future and the increasingly important role that must be played by the private sector and helping meet the community and human needs. The first proposal is a challenge grant that will meet dollar-for-dollar private contributions 23 research centers at the University of Minnesota's Institute of Technology. These are the micro Electronics enter the productivity Center and the biotechnology Center and the second is a corporate social responsibility tax credit and this credit will encourage businesses to help neighborhood and other nonprofit organizations. This total program will help keep Minnesota competitive with other states as it will get rid of the serious obstacles to job growth and let me make this point clear the goal behind this program is not just to get businesses to relocate Minnesota research shows that this kind of approach doesn't work. Well rather the goal is to make certain that we don't have unnecessary disincentives to the businesses starting here or coming here for growing here or staying here. The fun this job climate program and budget estimates show that we need it. I will recommend that the 1% increase in the sales tax that was passed last spring. He continued Beyond a schedule 1983 termination. My second initiative, I'll propose legislation to significantly reform the basic funding formula for Minnesota school districts in order to assure a greater equity and local discretion our current system of school finances not working. Well, it does not achieve the equity and educational opportunity. That was hope for when the program was put in place in 1971 moreover the current system limits local discretion too much. I assure you that greater local discretion and improved Equity are compatible goals. In place of the grandfather Revenue declining enrollment revenue and the discretionary Revenue programs our recommend legislation that will authorize local boards to obtain up to $400 per pupil unit in additional equalized revenue. And this will be above the basic equalized Foundation allowance besides this school boards will be able to Levy Above This total if they choose The Descent the decision about what level of Revenue to seek would be that of the school boards and not the state This new program will be phased in over three years starting with the 1983-84 school year. My proposal will also eliminate many of the mandates and regulations as possible and this will apply not only to schools but to other programs as well. Third I will propose a series of changes that will improve the relationship between local governments and the state as well as the relationship between local governments. And the people that they represent these changes recognized that state aid to localities must reflect actual rather than projected state revenue there for All State aids dispensed to local governments and schools will be paid in a shared prorated manner based on actual State revenues collected that is the state revenues are unexpectedly low local and school aides will fall by the same margin up to 5% on the other hand if State revenues are unexpectedly High local and school age will increase by the same margin again up to 5% my proposals recognize that our current property tax system is too confusing. Therefore. I'll recommend that the homestead credit system be ended and that instead Homestead property taxes be held down by lowering the portion of Market value which is taxable taxes would be no higher and this new system and in the current system. Agricultural property taxes would be determined in the same way by reducing the portion of market value which is taxable and this would make up for the elimination of homestead credit and the agricultural mill rate credit my proposals recognize that local Citizens need to understand the real costs of local services and that a useful tension should exist between taxpayers and local officials. Therefore, I will recommend that Levy limits for the cities and towns and counties that are scheduled to be lifted in 1983 not be reinstated local communities and schools will be better able to decide for themselves how they should conduct their affairs. I would ask each of those who are here at state government as each day of we'd start the day and say people and local communities are intelligent and capable and can be trusted fourth our recommend the program to eliminate now and in the future are necessary State mandates and regulations. We must free the hands of local officials to the greatest extent possible. These changes will be made by Statue and by departmental action to get off to a good start. I'll recommend the immediate elimination or amendment of 16 State mandates. I'll recommend the creation of a permanent procedure for cataloging analyzing and evaluating existing state mandates. The goal will be to remove at amend as many mandates as possible our recommend that the office of local government and Department of energy Planning and Development be responsible for this job. I have chosen the office of local government rather than a new task force or commission. So as to avoid the very duplication and red tape that we hope to exercise. And I will recommend that all proposed legislation affecting local governments from this point on clearly identify potential costs for those communities. V I will propose changes in the public employment Labor Relations Act which will take into account our experience over the past year. He'll ra as amended 1980 has produced over 50 strikes. I'll propose amendments and power that will lead to more voluntary settlements and fewer stripes and this will be accomplished by strengthening the role of mediators in the collective bargaining process in addition automatic time frames for strike legalization will be eliminated and this will encourage a greater degree of good faith bargaining as and will be fair to all concerned. And I will propose that certain State Hospital workers be given essential status similar to that covering local hospital workers. This will ensure that the mentally ill and other residents of our state institution received basic care without interruption. And sickness and last I want to talk about saving lives. I will recommend specific unflinching steps to get drinking drivers off the road. We must further lead the way attending the nation's amazing and difference to Highway death and injury almost seven out of ten drivers killed in traffic accidents in Minnesota have been driving or have been drinking before hand. Now proposed legislation that will enable Law Enforcement Officers to increase their arrests of drinking drivers and to ensure that repeat offenders are dealt with more severely and more effectively Minnesota already has one of the best driving while intoxicated control systems in the country and I thank the law enforcement officials who make it so but we must do better drivers must know that tough enforcement will become even tougher and that certain and immediate consequences will follow all that drinking and driving offenses. I will propose legislation that will broaden the authority of Law Enforcement Officers to give all alcohol test to traffic violators any driver with an alcohol concentration of more than .05 will be considered impaired and repeat drunken drivers who test Point 100 or higher will be charged with a gross misdemeanor strict enforcement and heavy penalties will be the rule that we will not back off on our weather Minnesota to Rehabilitation we must convince the people that they have the deepest personal responsibility not to drive if they drink. These then are the proposals that I'll be presenting for your consideration in this session. They're in keeping with the principles of frugality and individual at local responsibility. But let's look further into the future beyond the constraints of this legislative session. We are seeking a society in which there are good jobs for everyone who is able to work. We want a society in which communities are warm and neighbors are compassion. We seek a society in which families are strong for their loving arms of the arms that hold the nation together. Now these of course represent Noble thoughts and our hopes more than they do a government plan for the future all good things cannot and should not be in the hands of government officials. What we must expect from public officials is leadership and charting government's course the long-term changes. I envisioned and public services are so fundamental that can they can only take root outside of government as things now stand government not only funds rate numbers of programs. It also manages them. Why how can we expect government to provide effective and efficient service that there are few Alternatives shouldn't people have a greater opportunity to shop around for the services that they now receive shouldn't the private sector be given a greater opportunity to offer these services at competitive prices and shouldn't public officials have substantially more flexibility than they now have in carrying out welfare sanitation law enforcement in any number of other public services. Well, my answer to all these questions is absolutely yes. For these things to happen government must become less parochial less cell per self-protective and less fearful of competing on the open market but government cannot accomplish these changes alone or even lead the way leadership must come from the private sector my stand ready to offer it to as much help and encouragement as I can and enabling creative people in the private sector to play a larger role in carrying out needed Services services that have been monopolized by government and I also call upon individuals and groups to rethink in the most fundamental way the way in which we provide Public Services. We must make certain that good public services are not dependent on ever increasing taxes suggestions have been made recently in newspapers and elsewhere that says studies be made and I agree. I have asked Ken Declan the commissioner of energy Planning and Development to convene a diverse group from both in and out of government to take a sharp. Look at Minnesota's future. Ladies gentlemen, these are difficult days. They're difficult for political leaders who must make decisions that please no one there are difficult for employees for public and private who are afraid for their jobs and their difficult days for those who foot the bill for government as we go about our work the session we must balance to at times conflicting goals. We must provide exemplary public service for the people of Minnesota of the same time. We must remember that these very same people are neighbors and others who have chosen us to represent them are in a financial corner. Just as I state is and I urge us to be responsive to their (00:24:12) wishes. And there you have Governor, lt's State of the State message through this joint session of the Minnesota Legislature. The governor shaking hands with house Speaker a savings and a president check Davies Chief Justice of the Supreme Court of this and all and he is being escorted slowly out of the chamber Now by National Guard officer just a few moments Pat Kessler will be going to the floor of the house to seek reaction from legislative Solution that's been listening to the speech along with us. In his speech the governor hit very heavily on his belief that the job climate in Minnesota needs to be improved spoke of the need for major reform in workers compensation and unemployment compensation laws. He called for some changes as well in school aid formulas for a change in the way. The local Aid formulas are distributed interesting point. There is that the state's Surplus or deficit should be shared with local communities up to five percent plus or minus Appropriations be called as well for tougher penalties for people who are convicted of drunken driving. That will be heading down to The Well of the house chamber in just a few moments to speak with some of the members of the legislature said of a journey to Roger mole speaker. Sieben minority leader Robert Ash back House minority leader blend Sherwood and others will be staying around here. This joint convention has been dismissed now joint convention is a very ceremonial occasion on it. Which admission is By Invitation Only galleries of the house are controlled and so is the floor and now let's go down to Pat who's standing by with Senator Roger mole on the floor. Thank you Bob as we know the speech has just ended the floor is quite crowded right now. We are going to speak with Senate Majority Leader Roger mobile join an interview in progress are certainly legitimate issues to be talked about in the context of a campaign many of the things that he recommended were recommended effective in 1983. So I guess I'm a bit disappointed in the message will try to do some of the things that he laid out in terms of the recommendations dealing with it. As I said drunk driving and certainly committees are going to look at unemployment comp and workers comp and all of the rest. I would just simply add some of those tax items are in the Bill that's on his desk now. I hope he would sign it and use that as a vehicle for accomplishing some of the things that he recommended because thank you very much because all of those recommendations are in that bill. Do you think it's going to be easier for him to sign it? Well, I would hope so he has certainly got an opportunity right here to accomplish just that there are there good good Provisions. We agreed to them and he ought to sign them in context of solution of the overall budget problem. It's been said by somebody a Fellers today that paints a pretty bleak message to the state pretty bleak picture. What's your reaction here? Well, he he does that I guess to a certain degree. I'm I am surprised though that he would spend all of his time talking about issues that the certainly can be addressed in the context of a political campaign without even talking a bit about the immediate crisis that we have before us. I find that surprising if you find anything good to say about this speech Senator, I agree with the governor that we ought to get you drunk drivers off the road. That's about it. That's about it as right now, I think that for him to recommend doing a way of the egg credit and the homestead credit is just nothing more than a shift of the costs of government onto the home owners and farmers and small business people of this state and at the expense he's doing that certainly by granting attacks forgiveness to those who seem to have some means all of the recommendations. He makes and tax breaks are to corporations to the wealthy and the powerful and the state and to shift it back onto the back. Serve the low and middle income people. I find appalling. Thanks very much Senate Majority Leader Roger Mo Bob. I'm going to make my way over in front of the podium to another dfl leader. Excuse me. Just a moment. All right Pat if you right next to you there is a war in Spanish. You might want to pick up some comments. Thank you. It's hard to see down here. Yeah. Okay. Well, I've got several of these spotted Focus old some of these shifts and so I don't think that his program really was there was nothing new in it. Certainly a lot of it was were things that he talked about but there's no funding Provisions whatsoever. What is the difference between the job climate and the business climate is so far as categorization of this issue. Well, I think that it depends on who you're talking to, you know, I prefer to refer to it as jobs that because I think that's the primary responsibility and I everyone feels that if there are jobs that obviously business will be doing well as I pointed out earlier Pat as I read the governor's prior three State of the State message is last night and I Did not see anything about jobs or economic development in those programs and no speeches. And so what troubles me is the fact that this is merely an election day speech and the things that he's talking about today is jobs is the thing that government governor should be concerned about the first day takes office. Not merely when there's another one. There's a he realizes there's an election just around the corner and the other thing is there's no funding Provisions in there. A lot of the things he talks about in that bill or are in the Bill that's on his desk. And obviously the real thing that we're all concerned about is what's he going to do with that bill. The first thing the state has to do is to get back on track as far as predictability and stability and he didn't even mention whether he's going to sign or veto that bill, which is the primary of primary concern everybody in the state right now. Do you agree with the governor that do you agree with the governor that he that local government age should be restructured. The relationship should be restructured that something is wrong right now. Obviously, there's something wrong right now. We're going through a very difficult period Do not agree with him. I like a system where we have a fair and Equitable system of Taxation. And then we re lay that money on to local governments who can provide the services very efficiently. So I disagree with him you support extending the sales tax extending the sales tax in what respect for the business tax relief. No, I don't I think that first of all we have to find out exactly where we are what it's going to cost before we talk about extending the sales tax. I think we've got to give business some better incentives than that and I'm going to be talking about some incentives that make more sense that are more immediate and that are something new and not merely rehashing it to shifting One Fund from some from One Fund to another you know, that money that's in that 1% is already committed and I don't think that you can spend money twice. At least that's what the governor is proposing. What do you propose? What do you propose? Well, I will have a very I think comprehensive and good plan that Comes in with new ideas for jobs and business development and I will have that sometime before the end of the month. But this is the governor's day and knives wanted to comment that I think that many of the things he's talking about are in the Bill and are on his desk and I'd like to see what he's going to do with that bill attorney general Warren Spanish. Thank you very much Pat. If you had this through that huge crowd of reporters, they're over by representative blend Sherwood's desk that is where you can find him when Sherwood is the minority leader of the house and who hear him will have an opportunity to hear what one of the Republican leaders of the legislature has to say about Governor alkies State of the State message today attorney general warrants panis, of course is the leading dfl candidate for governor at this time. There were a number of other former governors in the audience today, but Rudy perpich was not he of course is another possible candidate for governor on the dfl side and Pat. I see you're ready with minority leader Sherwood right now house. Party leader Glenn Sherwood your reaction. Generally first to the governor's address. I thought it was perhaps the governor's most thoughtful speech that he may have made in his career. He dealt with the fundamental issues of the struggle that's going on here in the legislature as well as nationally dealt with in a compassionate way and projected six methods in which we could could deal with the economy as well. As other things that affect our lives. I thought it was excellent. The major thrust of the speech. Most agree is the job incentives of stimulating the private sector attorney general Warren Spanish who is also running for governor has said just a few moments ago that he should be thinking about jobs the first year in office, not the third year in office going into his fourth year. Well, of course, you can expect that kind of sort of sour grapes comment, and I'm sorry for it. The governor has has laid down some specific points here and I think that they're on Target and we are we are ready for them. What kind of chance does some of these do some of these Job incentive proposals have in This House of Representatives, which is closely divided. Difficult, it'll be the similar struggle that we've been going through over these last five weeks in the special session because that also has a head overtones of economic recovery. We haven't gotten very far. I'd have to be candid and say that we will have great difficulty in dealing with workers compensation in the like, how could you outline for me what you think are the major proposals briefly of this speech and what you think we'll get through. Well one that I will jump to First was the last one the governor talked about dealt with DWI driving while intoxicated that proposals should have bipartisan support. I applauded it's something we need to do is something that has frustrated me for some time. So I look upon that as a something that we will accomplish out of those the others that dealt with with the job climate the business climate will be in fact more difficult changes proposed relative to the relationship between state government and local government. I believe we will get some of those through and some of the mandates will be removed that have stifled local government and and school operations. So unbalanced. Will happen in some things won't one final question many of the proposals the governor made in his State of the State address are included in the government in the compromise budget bill passed on Monday. And now on the governor's desk. Is that going to enhance the possibilities for a signing that bill? Well, I don't I don't believe that there are very many in that bill that sitting on the governor's desk. It's true. There are a few but I would call those a sweetener or token compared to what the governor is talking about. And I don't know I have indicated that I am hopeful that he will not sign a bill. I'm hopeful that he will veto it but I don't know how it will impact on him. You still oppose the bill? Yes, I do. Thanks very much House. Minority leader Glenn's Sherwood Pat. I have been straining my eyes trying to see the Senate minority to Robert Ash back, but I do not see him. I will make my way through this crowd here Bob. However, Pat I do see Senator Jim yulin from Duluth the Republican senator from Duluth a very if you look just to your right he is standing sort of with his Back to you and you might be able to get a comment from him. So we would have at least something here immediately from the Senate Republicans senator uhland from Duluth and I see that you have indeed found him. Go ahead Senator Jim Newland your reaction to the governor's address all pad. I think what the governor did was to set the legislature on a course to address the long-term problems of the Minnesota economy, which is that of being competitive with are joining States and to becoming attractive once again to employers if that occurs, then we can start generating some tax revenue and address the proper responsibilities of state government the question of the day among dfl or seems to be that some of these proposals are already included in this budget compromise bill now on the governor's desk. Do you think that's going to enhance the chances for passage? I think in my judgment the governor is going to sign that bill at today. I'd say there's about an 80% probability that he will those there are three relatively minor Provisions about 20 million dollars worth in the current. I think those are helpful, but I don't think those speak to the comprehensiveness of his proposals today, which address the overall economic climate in Minnesota. Those were three of maybe 20 separate issues. I will ask you what I asked House minority leader Glenn Sherwood attorney general Warren Spanish says the fourth year of a governor's term is not the time to lay out a program for job incentive for business incentive their response to that boy. We're in such an uncompetitive stance now that I'd lay it out if it was the last day of my term just to try to give the legislature some direction and try to keep the issue one of public discussion. If we don't address that problem, we're going to be in a revenue shortfall situation for the decade of the 80s and it simply irresponsible not to make us competitive again, what kind of support what kind of chances does a program like the governor has outlined have of getting out of the Senate whenever you put forth the program of economic recovery. You don't expect it all to pants. I think he says these are the African portions and he'd like a majority of them addressed and allowing for the legislative input. I wouldn't expect them all depends. But we want to start the legislature focusing on the long-term problem rather than always bailing out the sinking boat. We want to fix the boat so we can stop bailing. Thank you very much Republican. Senator Jim uhland of Duluth Pat. I'm not sure you can make your way through that that crowd that if you can how speaker Harry sieben is right in front of the house. Well down there right in front of where the chief clerk at verdict stands talking to a number of reporters and you may be able to worm your way through there. The aisles are rather narrow and the facility is not built for the kind of traffic. It's getting right today. But this is a typical kind of Burden that we have on these state-of-the-state messages and budget mesogens and Pat has indeed found his way to house Speaker Harris even so let's go to patent Bob will join this interview in progress and Ben Revenue Cuts spending cuts or another tax increase of that magnitude or a combination of the tool and without addressing that question is completely irresponsible and we're not going to do it (00:38:47) period (00:38:50) do you ever recall a governor making a proposal of this nature in a non-budget year. Well, there were traditionally we've done the non-budget year State of the State message is we don't have them very often but when we have had State of the State message has a non-budget years. They haven't dealt with much in the way of fiscal items this year. Of course we seem to be always in a budget period it's always a fiscal crisis. So I think it was appropriate for him to talk today about today's fiscal problems, which he didn't do he talked about the next biennium in the biennium after that much of that might be appropriate for the next budget message in January of 1983, but and I don't mind him talking about it and I think the business climate issues. He talked about are important and they're worthy of exploration by this session of the legislature. But the pay for them with dollars. We don't have is something that we are not willing to do mr. Speaker. I'm just joining this interview. The governor has proposed job incentives and business incentives rather and also some property tax hike on the local level by changing the relationship between state and local government. What is your general reaction to that kind of proposal? Well, my general reaction to the governor's speech is that I think there's some good and bad in it. We and you didn't mention the parts that I think are good. So I want to dress them right now. But but we are going to strongly resist his efforts to raise property taxes. I don't think we had to abolish the homestead credit. I don't think that we had a shift the burden of education on to the property taxpayers. I think we had to continue to have that balance between State and property to State raise taxes and property taxes about the same ratio that we have now. I don't want to go back to the system of Education where the rich get a better education. And then the Bordeaux that's what we had before 1971 and Minnesota. I don't want to regress to that the governor didn't say that's what he was recommending. But that would be the effect of his programs. It's a matter of degree. I suppose as it affects the sales tax, if we take one penny on the sales tax and transfer it to business tax relief incidentally much of his business tax recommendations were passed by the legislature already. We did it a few days ago. It's sitting on his desk. He wants them to become law of any out of sign it I don't mind exploring those business tax incentive ideas and the other Pro business ideas, but we can't pay for it with money that we don't have and it'll get us in another fiscal crisis or a worse one than we have now by taking 450 million out of General Revenue funds. That's what one penny and the sales tax is expected to raise in the next biennium maybe a little bit more than that and taking a General Revenue and transferring it to a new program without saying how those expenses are either going to be State expenses are going to be cut or how a new She's going to be raised to cover that 450 million dollars. That's irresponsible because of the points the business points in his speech. Do you think it's going to make it easier for him to sign this bill? I think the the pro-business items in the tax bill this the budget bill that just passed the legislature are in keeping with the governor's business philosophy. So there are some things in that bill that he has strongly urges to adapt today. So we'll change this to the Labor Relations Act paralog. We're willing to explore that. I don't know what some of those recommendations mean and I guess we'll have to see them in Bill form and I guess it advised the governor to hurry up with the bills faster than he did last year with his bill introductions because if he does sign this bill today, I don't know if the the budget Bill there tomorrow that's on his desk. We're going to have a very fast regular session and anybody including the governor that wants her ideas explored are going to have to get them in to us in a hurry what from the governor's speech is going to pass this. Just later. Well, I think his ideas is the effect drunken driving are worthy of a full discussion by the legislature. All of them are worthy of discussion. And we're going to hear anything that he wants heard for that matter anything that he has introduced the drunken driving ideas are any spent some time on that and speech are in keeping with the thinking of many legislators in both parties the business tax incentives, as I mentioned that the governor recommended have been accepted by the legislature already most the Democrats. So all of them except seven in the house voted for them a few days ago, we would be willing to go after those programs again in the future there in the governor's recommendations. We think there is a a lot of good in his speech the biggest we have several problems with it. Of course, the biggest problem we have is a tremendous shift on the property taxes in the tremendous shift increase, especially in homeowners property. X is in farm owners property taxes, that would be caused if the governor's programs are implemented. Thank you very much. I'll speaker Harry sieben. All right Pat. Thank you very much. Looks like the house chamber is slowly beginning to clear out we have now managed to hear from representatives of all the major political parties and the major leadership positions in the legislature along with attorney general Warren Spanish who of course is dfl candidate for governor this year. So at this point we're going to conclude our broadcast of this address live from the state capitol. You heard Governor cui's annual State of the State address the governor's message focused, of course on legislative initiatives to improve Minnesota's job climate in the speech. He called for significant changes in unemployment and workers compensation laws several tax changes. The governor recommends are included in the budget balancing bill that lawmakers passed on Monday that bill is now sitting on the governor's desk. He would announce tomorrow whether Sign or veto that piece of legislation this live broadcast from the Minnesota house Chambers was made possible in part with the financial assistance of the Minneapolis Tribune technical director was Linda Murray with Pat Kessler. This is Bob Potter speaking. This has been a presentation of Minnesota Public Radio.