Facing a legislature overwhelmingly controlled by Democrats, Republican Minnesota Gov. Tim Pawlenty delivered a state of the state address Jan. 15 chock-full of GOP standards: tax cuts for businesses, performance incentives for schools and streamlined local government.
“Minnesota has to come to grips with this fact: In 2009, it costs too much for employers to create and keep jobs in this state. If we want to build up employment, we need to bring those costs down,” Pawlenty said.
Specifically, the governor said the state should cut its corporate income taxes in half, exempt companies from paying sales tax on new equipment and reduce its capital gains taxes for small businesses.
On education, Pawlenty called for tougher teacher certification tests, changes in laws for teacher union negotiations with school districts and expansion of a program that gives schools more state money if they improve their student performance.
The second-term governor said it was “no secret” the state would have less money to give to counties and other municipalities. But he said the state should reduce regulations on local governments and allow them to work together to reduce administrative costs.
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