Pawlenty: Property tax cap is key to passing a budget

Governor Tim Pawlenty
Gov. Tim Pawlenty says the passage of a cap on local property taxes is the key to passage of a budget bill.
MPR Photos/Tom Scheck

Gov. Tim Pawlenty wants to use substantially less money from a health care access fund to balance the budget, but he's digging in his heels on a property tax cap.

The Republican governor met with House and Senate leaders over the weekend, trying to close a projected $935 million state budget deficit.

Pawlenty's latest budget offer would use about $50 million from the health fund, down from his earlier proposal of $125 million. During a Capitol news conference today, Pawlenty described approval of a cap on local property taxes as the key to a budget deal.

"We cannot be fiscally irresponsible. We can't be adding spending that is unsustainable," Pawlenty said. "We have a tight economy that families and businesses across Minnesota are tightening their belts. Government has to do the same thing. And a key part of that is the property tax cap, and we're putting that front and center in the discussions."

Senate Assistant Majority Leader Tarryl Clark, DFL-St. Cloud, said she's pleased the governor backed off on the health care access fund. But she says Democrats still have concerns about the remaining $50 million he wants to use.

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