Transcripts

MARK STEIL: Ventura told about 100 people in Worthington he was surprised that even fiscal conservatives in the state legislature have complained his budget spends too little. But Ventura said state government is growing at a better than 6% annual rate, something that can't continue.

JESSE VENTURA: I told my commissioners-- and I gave them marching orders-- straight and clear, that was unacceptable to me. I will not accept permanent government growth at that level.

MARK STEIL: Ventura says the response to his budget has been outstanding. But many groups have been critical. Some state legislators say more money is needed for local schools. Many districts face budget deficits because of declining enrollments, increased energy bills, and higher teacher salaries.

Ventura's plan to reform the state's telecommunications system is also under fire. Ventura wants to virtually end a system of subsidies, which he claims hinders needed competition. The governor says effective competition to challenge entrenched phone companies is the best way to bridge the digital divide and bring high-speed data lines to all parts of the state.

Some groups have criticized the plan, saying it will lead to higher phone rates for rural customers, where subsidies have kept phone bills down. Ventura's Commerce Commissioner Jim Bernstein told the Worthington audience, that will not happen.

JIM BERNSTEIN: The allegation was that what's going to happen is the governor is going to raise the prices of rural phone service to subsidize metro. That is not what is happening. We would never allow that to happen. Now, it is possible that in some cases, heavily subsidized area, the rates are going to go up. But for much of Minnesota, the rates are going to come down because that's what competition does.

MARK STEIL: But many local telephone companies are skeptical. Minnesota Association for Rural Telecommunications Director Randy Young says the Ventura plan could double or even triple some local phone bills. He also disagrees with Ventura's claim the proposal will foster competition. Young says the governor's plan drastically reduces what are known as access charges, the fee long-distance carriers pay to use local lines to begin and end calls. Young says that's a prime revenue source for small telephone companies.

RANDY YOUNG: That loss of revenue may very well make it not feasible to go in and compete with an existing telephone company in a rural community. That's going to hurt competition. That's going to hurt rural Minnesota.

MARK STEIL: The governor would offset the access revenue loss with a new tax-supported fund designed to increase competition. Young says, rather than enact the Ventura plan, the legislature should create programs that will help boost demand for high-speed phone lines. He says that could include training people how to use computers and the internet effectively and perhaps helping low-income people buy computers. Mark Steil, Minnesota Public Radio.