ST. PAUL -- Gov. Tim Pawlenty and legislative leaders want Minnesota counties to ignore a one-sentence provision in a new tax law, but the request angers county leaders because they want flexibility the new law would offer.
As written, the law would allow counties to reduce spending in areas ranging from health care to libraries. But Pawlenty and leaders decided the provision was a mistake and promise to eliminate it soon after lawmakers begin their 2009 session.
In a rare move, the Pawlenty administration and top lawmakers are sending letters to county officials suggesting they follow the old law. Pawlenty and Democratic-Farmer-Laborite legislative leaders discovered the provision too late to change it before lawmakers adjourned for the year late May 18.
Letters from Pawlenty do not carry the weight of law, so counties could go ahead and reduce spending.
But Pawlenty and leaders say they will overturn the provision and make the new law retroactive to this year.
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If that occurs, counties that ignore their advice could end up with large past-due bills if they cancel services now.
Pawlenty on Thursday signed the tax bill containing the provision into law, along with other remaining bills from the 2008 legislative session. Among provisions becoming law are those establishing Lake Vermilion State Park, a new veterans' home and property tax relief.
He also signed a measure reforming health care in the state. One lawmaker called it the most important health policy Minnesota has adopted in at least 15 years.
The legislation attempts to make health care more affordable, more accessible and of a higher quality, Pawlenty said. Making those changes are difficult because the health care system is large and complex.
The Vermilion park, which would be the first major new state park in three decades, remains up in the air. State negotiations to buy the land from U.S. Steel could continue for months, Pawlenty said.
Pawlenty said it is "very likely" that a deal will be reached. A public works funding bill Pawlenty signed Thursday included $20 million to buy 3,000 acres for the park, as well as money for a new Minneapolis veterans' home and for a new passenger rail line between St. Paul and Minneapolis downtowns.
The senator in charge of funding public works projects, such as the park, said he has mixed feelings about Vermilion.
Sen. Keith Langseth, DFL-Glyndon, said he likes the "preservation aspect" of securing new park land, but said adding a new facility could hurt overall state park operations and funding because state money already is tight and it will be stretched thinner with a new park.
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A tax bill Pawlenty signed includes $130 million in property tax relief, partially coming from placing a limit on how much cities, counties and townships can raises property taxes.
Cities and counties also will receive more state money in hopes that keeps property tax increases down. About 70,000 Minnesotans will receive larger property tax refunds as part of the tax-relief measure.
