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All-encompassing bills for attacking a $935
million budget deficit consumed the Legislature on Thursday,
setting up the three-way negotiations that will bring the 2008
session to a close.
      
The separate plans awaiting House and Senate votes both rely
heavily on dollars shifted from the state's checking and savings
accounts. But they also bite into payments to hospitals, courts,
colleges and many other government programs.

      "During a time of economic downturn it is appropriate that we
use rainy day funds to help address this budget deficit,"
Democratic House Majority Leader Tony Sertich said at the outset of
a debate that promised to last into the night. "We cut the budget
where necessary."

      Technically, the budget doesn't have to be fixed until next
June. But state leaders don't want to wait because the choices
diminish as time passes and as payments go out the door. Already,
lawmakers exempted schools, nursing homes and local government aid
programs from cuts - taking more than half of the budget off the
table.

      If the DFL-led Legislature and GOP Gov. Tim Pawlenty fail to get
a negotiated deal, the constitution gives the governor the power to
make cuts on his own after depleting state reserves.

      Pawlenty said Thursday he was bothered by the bills that had
taken shape, noting that many ideas he championed fall under the
ax.

      "Their budget bills are filled with stuff that defunds my
priorities," he said. They are "putting together bills they know
are unacceptable to me."

      As an example, both bills squeeze his QComp program that base
teacher raises more on performance than seniority.

      The bills don't just deal with money. The House version also
would rename the Boxing Commission the Combative Sports Commission
and give it jurisdiction over other combat sports, let welfare
recipients who have babies get higher payments and ban a plastic
used in baby bottles and sippy cups.

      House members stripped out a provision allowing bars in cities
within 10 miles of St. Paul's Xcel Energy Center to pour two hours
longer during the Republican National Convention. Rep. Joe Atkins,
DFL-Inver Grove Heights, promised a full airing in a committee
hearing next week.

      "This is St. Paul's opportunity to be considered a big city,"
said Rep. Phyllis Kahn, DFL-Minneapolis, who argued for keeping the
measure.

      In a twist, Republican Rep. Pat Garofalo of Farmington tried to
remove a $14 million guarantee for convention fundraisers from the
bill, and Democrats argued to keep it. The move failed.

      "I'm glad that they chose us," said Rep. Loren Solberg,
DFL-Grand Rapids.

      Discussions in the House were so drawn-out that by 4 p.m.
Garofalo moved to suspend a rule requiring debate to end by
midnight. Usually such motions don't happen until well past dark.
He withdrew his amendment after objections.

      The Senate voted to remove freestanding policy provisions that
didn't have any money attached to them. But there were still dozens
of pending amendments holding up a final vote.
    
  Senate Finance Committee Chairman Dick Cohen acknowledged that
the budget bill wouldn't please everyone.

      "In a perfect world, I would vote no on this bill," said
Cohen, DFL-St. Paul. "But this budget and our circumstances today
are not the perfect world."

      Sen. Geoff Michel, R-Edina, took issue with the amount being
taken from reserves and the cash-flow account when budget problems
are expected to linger.

      "It's just going to be tougher next year to just put a little
Band-Aid on it this year," he said.

      The Legislature has until May 19 to complete its work, but there
is a growing sense that lawmakers can reach the finish line early
for a change. They passed a construction projects bill Wednesday
and a sizable transportation finance plan earlier in the year.

      "It's bonding, budget and bye-bye," said House Republican
leader Marty Seifert of Marshall.

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Both the House and Senate were engaed in a lengthy debate trying to pass a final version of a budget bill.

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