The clock is ticking at the state Capitol in St.

Friday, June 29, 2001

The clock is ticking at the state Capitol in St. Paul.

Today, the score is: one down, five major finance bills to go to avert a possible shutdown of state government.

According to state Rep. Rob Leighton (DFL-Austin), the next 24 hours are the most critical.

Although much work remains to be done, progress finally is being made, according to Leighton, after the omnibus tax bill was passed by a vote of 117-16 Thursday.

"Passage of the tax bill was a major step forward," he said. "The compromise that was reached addressed many of the earlier concerns raised by rural legislators. This tax bill significantly reduces property taxes for all classes of property, and will provide a 24 percent reduction for homeowners and farmers.

"The bill also includes a full rebate of the surplus funds in state coffers as of June 30, which will likely total about $750 million, he said.

Many rural legislators had expressed concerns about property tax shifts and changes to Local Government Aid (LGA) in the original House tax proposal. Leighton said the bill was significantly improved in recent days with respect to rural concerns.

"LGA funding has been increased by about $140 million and rural communities will greatly benefit from the new formula, which was a major concern of Senate Democrats. The new bill also provides aid to equalize school debt service and excess levies, a provision that tends to mitigate the funding disadvantage poorer school districts have with wealthier districts," the legislator said.

Leighton also expressed support for a provision backed by Gov. Jesse Ventura to increase the "rainy-day fund" – money left unspent in the budget in order to help the state through an economic downturn.

"The bill leaves about $250 million on the bottom line for the state to use down the road as a hedge against an economic downturn," Leighton noted. "Given the unpredictable state of our economy right now, this is a prudent thing for the state to do, and I strongly supported increasing the rainy day fund this year. "

Although the House has now passed the omnibus tax bill and four other finance bills, the Legislature must pass five other major finance bills to avoid a government shutdown, which would begin at midnight Saturday.

Leighton said he is disappointed the special session has dragged on this long, but remains "upbeat" all the necessary work can be completed on time.

Call Lee Bonorden at 434-2232 or e-mail him at lee.bonorden@austindailyherald.com.