Pawlenty’s plan includes the benefit of no new taxes. In fact, there’s a one-eighth cent sales tax cut to help offset the recent transportation bill increase. There also is no reduction in K-12 education or cuts to local government aid. New initiatives including Strategic Entrepreneurial Economic Development, military and veterans support and K-12 education reform are included.

The governor’s plan to balance the budget reduces the growth in state spending by $341 million. We also would access $250 million from our budget reserve while capturing $250 million from the Health Care Access Fund surplus to maintain health care programs and eligibility for the disadvantaged.

Sacrifice in this plan comes with a 4-percent reduction in most state agency budgets, along with other targeted spending reductions. Note K-12 education and local government aid funding would not be cut. The Departments of Veterans Affairs, Military Affairs and Transportation would be exempt from these operating cuts.

Overall, approximately 40 percent of the budget plan comes from spending cuts and additional revenues, 35 percent from balances or surpluses in non-general fund accounts and 25 percent from the state budget reserve. Despite the proposed spending reductions, the new budget would increase by 9.2 percent over the previous two-year budget.

This plan certainly will be cause for debate in St. Paul and at kitchen tables across the state. There likely will be legislative alternatives to this plan. For instance, tax increases may be offered to prevent state agencies from having their budgets trimmed.