BAXTER - State bonding bills, political correctness and teacher-school district negotiations were all part of Friday morning's annual Eggs and Issues session at The Lodge at Brainerd Lakes in Baxter.
Hosted by the Brainerd Lakes Chamber, the event featured a preview of not only the legislative session that starts Feb. 4, but also of an upcoming Republican Senate District 12 endorsement contest between Sen. Paul Koering, R-Fort Ripley, and Paul Gazelka of rural Brainerd.
Lawmakers who addressed issues of taxation and bonding bills included Koering, Rep. John Ward, DFL-Brainerd, and Rep. Larry Howes, R-Walker.
All three of the legislators expressed support for the concept of a bonding bill although Koering and Howes admitted to mixed feelings about such bills.
Sen. Paul Koering (center), R-Fort Ripley, gestured Friday morning while discussing the 2010 legislative session at the Brainerd Lakes Area's Eggs and Issues session at The Lodge at Brainerd Lakes Area. Listening in were Rep. John Ward, DFL-Brainerd, and Rep. Larry Howes, R-Walker. More photos may be seen in our Spotted gallery at www.brainerddispatch.com Brainerd Dispatch/Steve Kohls
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Ward said he favored passage of a bonding bill early in the 2010 session and said he is working to establish a veterans nursing home in the Brainerd area and to expand the Cuyuna Range Recreation Area.
"A bonding bill will create lots of jobs," Ward said. "I really believe a bonding bill is important."
Howes, first elected to the Legislature in 1998, cautioned that it usually takes between 1-1/2 to two years for the jobs to be realized after a bonding bill is passed. He likened a bonding bill to a mirage in the desert because he said the jobs are temporary.
"I also support a bonding bill and will in all likelihood vote for a bonding bill," he said.
Howes reminded the audience the jobs created by the state are established with money taken from its citizens.
"The state doesn't manufacture anything," he said. "We simply take money and spend it."
Koering, a member of the Bonding Committee, questioned the Legislature's priorities when people were asking for $36 million for a new St. Paul Saints stadium, $6 million to give the Target Center a facelift , $8 million for a Minneapolis Sculpture Garden facelift, $45 million to improve Orchestra Hall and $11 million to improve the Como Zoo's gorilla exhibit where zoo patrons currently stand around and look at the animals.
"I guess that makes the gorillas uncomfortable," Koering said.
"Now you tell me if we've got our priorities straight when we're only talking about the fun stuff."
He reminded the audience that years earlier he refused to carry a bill that had been proposed for a $19 million performing arts center on Brainerd's Central Lakes College campus.
Bonding projects he did support included a Minnesota Department of Transportation truck station near Little Falls and a $10 million training facility at Camp Ripley. Projects such as those, he explained, were often included in a larger bonding bill containing projects he didn't support.
Gazelka, who owns a State Farm Insurance agency, told lawmakers he has five employees this year - one less than usual because he didn't replace someone who retired. He said he has frozen wages and cut the hours of one person. He suggested the state consider a hiring and wage freeze or asking employees to take one day off a pay period without pay.
Gazelka said a legislative scorecard compiled by the Minnesota Chamber of Commerce showed Ward voting in sync with the chamber on two of 13 votes. Gazelka said Koering voted with the chamber's position nine of 13 times and Howes voted with the chamber 12 of 13 times.
Howes noted many state employees are union members, whose pay can't be arbitrarily cut. Ward said he's engaged with the Brainerd Lakes Chamber but is less concerned with a scorecard compiled by the Minnesota Chamber.
"I don't care what my rating is with the state chamber of commerce," Ward said.
Koering responded to Gazelka by stating the Minnesota Chamber was a key supporter of the successful effort to raise the state gas tax and that a vote against that hike would have been considered a "bad" vote by the chamber.
He told Gazelka he would gladly compare his own legislative record over seven years to Gazelka's voting record during his two-year term anytime.
Mark Korte of Nor-Son Inc. asked lawmakers when the contract playing field might be leveled by discontinuing advantages granted to women and minority construction contractors.
"I'm handicapped right out of the get-go," he said.
Koering said the topic could be part of a "four-beer discussion" and that he didn't know the answer.
"The world has gotten to be so politically correct," he said. "If you're not a minority you're at a disadvantage."
The two-term senator said that during a previous legislative session, when he tried to remove an amendment that compensated Hmong farmers whose crops had been damaged by hail he was accused of being racist. He subsequently offered an amendment to compensate pumpkin farmers who had been plagued by raccoons and who lived south of Brainerd and north of County Road 2. Koering's amendment failed.
Ward said he believed the help for women and minority contractors was instituted because they were not receiving their fair share of contracts.
Howes told Korte he would look into it and said he'd like a provision that only Minnesota contractors are awarded bonding bill projects.
Jim Klein, a Baxter City Council member, said the state law imposing a fine on school districts ($200,000 in the case of the Brainerd School District) that don't reach a wage agreement with teachers gives an unfair advantage to teachers' unions and asked for the legislators' reaction.
Ward, a former teacher, said the state could look at extending the penalty date for non-settlements and that the law has made negotiations more agreeable.
"If management and labor are fair with each other we don't need any kind of stipulation," he said.
Howes said some sort of stimulus leading to a settlement might be needed but said the current rule punishes the people of the school district.
"There should be a better way," Howes said.
"I don't favor having any deadline or fine," Koering said.
Addressing the expected budget deficit shortfall and tax policies, the lawmakers differed on their approaches.
Koering said he would not support any tax or fee increase during this upcoming session. Gov. Tim Pawlenty is criticized for not budging on his stance of no new taxes, Koering said, but many in his party would like to see taxes cut.
Ward suggested a balanced approach similar to the House tax bill of 2009. That bill, he said, raised taxes on those people earning $300,000 or more (costing them $108 a year), placed a tax on alcohol and beer and granted a sales tax exemption to small businesses and bolstered tax compliance measures.
"It was a balanced and fair approach," he said. "We need to look at accountability and reform. We also need to talk about fair revenue."
Ward said the state has been making cuts since 1998.
"Cuts will happen and will continue to happen along with reform and accountability," he said.
All three lawmakers agreed to study information that Pequot Lakes School District Business Manager Rick Skogen said they should soon receive regarding an outstate revenue disparity gap.
Asked if they would favor a unicameral legislature, Howes and Ward jokingly suggested getting rid of the Senate. Koering said Minnesota's legislative system was designed so that it would be difficult to pass a bill. This helps keep emotion out of lawmaking, he said.
Ward said he couldn't imagine representing more than the 37,500 people he currently represents.
Three different answers were offered to real estate agent and Brainerd City Council member Kevin Goedker's question on whether they would support a sales tax on services such as legal, accounting and real estate services.
Koering said no. Howes said he could consider supporting if it was revenue neutral, balanced by tax relief. Ward said he couldn't give a yes or no answer without seeing a specific bill.
Howes said the governor wants no tax increases and others are suggesting an expansion of the sales tax countered by a lowered business tax.
"Maybe that's not a bad way to go," Howes said.
MIKE O'ROURKE may be reached at mike.orourke@brainerddispatch.com or 855-5860.
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