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Published - Friday, December 05, 2008
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Mock group takes a look at state deficit

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Ears perked up when new budget numbers came into the governor’s office.

State Rep. Gene Pelowski informed Gov. Ethan Kastello and Lt. Gov. August Judisch the deficit had ballooned to $4.8 billion. Balancing the budget would be that much harder.
Model Governor Ethan Kastello discusses Minnesota’s budget deficit Thursday along with, clockwise from top, August Judisch, Brooke Brewer and Myles Beckman during Model Legislature for area high school students at the Tau Center in Winona. (photo by Katie Derus/Winona Daily News)

The executive branch of the 2008 Winona Model Legislature didn’t panic. It had a plan in place. Bills generating revenue were already in committee, and the two had a powerful ally: Speaker of the House Shay Thompson.

The three are key players in this year’s Model Legislature, an annual project led by Pelowski, a teacher at Winona Senior High School, in which students learn hands-on how the Minnesota government works. Eight schools were represented this year, along with Winona State University students who helped the high school and middle school students navigate the bills and the process. This year, students this year focused on balancing the budget, much like the real Legislature will do in a few months.

Kastello and Judisch had run on a platform promising minimal cuts. They needed Thompson’s help to fulfill that promise.

“We want to try to avoid cutting programs as much as possible,” Kastello said.

The executive team huddled with allies in the House and hatched a plan. A bill increasing the sales tax to 6.875 percent would be further increased to 7 percent by an amendment on the House floor.

Thompson and Kastello were confident it would pass, raising over $700 million in revenue. They didn’t expect any attempts torpedo their priorities. Judisch was more cautious; he sensed opposition bubbling.

“I feel it out there,” he said.

A new roadblock occurred. Pelowski informed Kastello that the state’s current budget was almost $500 million in deficit, a twist the Model Legislature hadn’t considered.

Kastello sighed. Bills devoted to hot button issues or lighthearted pet projects such as legalizing drinking while riding on the back of a tandem bicycle would be shelved as the Model Legislature tackled the budget.

“I wish I had been elected last year,” he said.

The House and Senate took to their chambers to vote on revenue bills, including the sales tax, but as soon as the bill was read it was clear Judisch was right about opposition to the governor’s agenda. The revenue from the tax was supposed to go toward closing the deficit, but instead, it was divided up, leaving little for the general fund.

Debate was light on the bill, and it seemed sure to pass, until its author Josh Jacobson proposed the amendment increasing the rate to 7 percent. Opposition quickly formulated. It was ill advised to raise taxes that much in a recession, many said. The amendment was roundly defeated, though the original increase eventually passed.

Kastello and Judisch received news of the bill’s fate. “We’re going to have to get it amended in the Senate,” Kastello said.

They packed up and headed to the Senate chamber to put the full weight of the governor’s office behind the bill. If more revenue wasn’t put toward closing the deficit, the ax would soon start falling on programs.

Pelowski shook his head and wondered aloud about the recent developments.

“I don’t know what they’re doing,” he said. “They’re starting to act like us.”

Apparently, the model works.
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misisipifin wrote on Dec 5, 2008 3:24 PM:

" I now know why this state continues to churn out tax first liberals. The focus of this class was to fill the budget gap, and raising taxes seems to be the popular course of action. Wow! how creative, who cares what the consequences are now that you're taking more money out the consumers pockets during the biggest economic down fall in 50 years. I'm sure these students performed just fine for Mr. Pelowski, the fact is that he and his democratic controlled House and Senate are in a big way, responsible for most of this short fall. Had Pawlenty not put his foot down on these tax first liberals, we'd be in a much darker place that we are now. "


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