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We two former Minnesota governor Tim Pawlenty -- two point seven billion dollars budget thanks to Republican governor's cuts to balance the state budget.
Have angered some democratic legislators no shock there but some businesses protect him.
His plan includes delaying -- 63 million dollars worth of capital equipment sales tax refunds.
Starting in 2011 businesses will wait up to three months and that's of sending Minnesota manufactures -- governor Pawlenty as a leading GOP presidential contender.
The governor joins us once again live here on mine for breakfast good morning governor good to see you.
Good morning Alexis could -- be with you so you employed.
A rarely used law to close your State's budget deficit.
Without reason -- Explain to people what you did and war only -- garnered a fair amount a controversy.
Well of course Minnesota has a budget deficit like most other states with just a few exceptions so we have to balance our budget unlike the federal government which is out of control by the way and thank you for your earlier segment on that.
But that we have to balance our budget and so we had a big budget deficit we agreed with the Democrat controlled legislature on many budget bills but not all.
I vetoed the tax bill the other bills they sent me spent more than we had -- the so we had to bring our budget into alignment.
And that -- could come to agreement with the Democrats on that so I used an executive power called on allotment to finish the job and bring the budget.
In to balance it's not easy we're not choosing from ideal options.
But just like families just like small businesses in these times government has to live within its means.
Tighten its belt and live on a little less for now this -- same experience that most minnesotans and most Americans have right now.
Living within its means is that setting your manufacturing base.
Eating clues the decision to eliminate subsidized medical care for about 30000 low income residents.
-- important constituents.
What do you say to.
Well to the manufactures of course in Minnesota we have a sales tax rebate so if you buy a piece of capital equipment.
You get your sales tax rebate a -- a little bit after the purchase.
Actually we wanted to have that be up front as one of our proposals but our budget doesn't allow that so we're deferring that rebate by a little bad.
What I say to them is that's not ideal and I empathize with them.
But that deferral of payment is a lot better.
Then the bucket load up permanent tax increases that the Democrats were about to dump on the head as an alternative so if you don't like the delay in payments and this rebate.
The alternative would have been much worse so I hope they will put it in some kind of -- Next you have said GS did -- in order for the Republican Party.
To garner some -- -- you've got to work within your means and that means tightening the reins and cutting spending.
You suggest in some way that that's the premise to revitalize the party.
Well Lexus says that as your earlier segment and highlighted it just one of many examples the federal government spending is out of control it is irresponsible it is unsustainable it is reckless they can't even pay their bills if you were a CFO you would certify the federal government as insolvent.
We had secretary of state Hillary Clinton recently in China on rhetorical bended knee begging the Chinese to continue to buy our debt because if they don't we can't continue to pay.
Our bills I mean that is a very sad state of affairs and this administration.
Just exponentially multiplied that problem with the spending that they put on the table so it is a major problem.
We're going to have the federal government debt and financial crisis equivalent.
Of the mortgage meltdown within twenty years you can see it coming you can see the handwriting on the walls.
-- policy makers in Washington need to stand up to that reality and say enough is enough we are going to stop spending money.
President Obama said in a recent interview we don't have any more money well with all due respect Mr.
President we don't have any more money stop spending it.
He actually -- Advent ironically governor at the end at -- baseball game last night the all star game when there was talk about whether or not the National League should get a bailout -- -- losses he's and we don't have any money.
It was kind of kind of amusing but what but the situation is not amusing across the country particularly in places like California.
If it's been difficult decisions have to be made does that mean part of those difficult decisions may include seeing tax hikes across the board.
Well I can just tell you from Minnesota's perspective where are ready to highly taxed in this state we're trying to reduce tax burdens or at least keep a lid on in Minnesota not make it worse.
If you look at the spending patterns understood that the federal government or even in Minnesota's case -- I became governor they were well into double digits every budget cycle.
There are unsustainable they were way beyond even the good old days of GDP growth of three or 4%.
And you could see -- them the math isn't going to work and so tough decisions have to be made and all of us as Americans have to stop thinking.
That progress is defined by how much more can government do.
We can't afford what we have we certainly can't afford the projected growth in these entitlement programs at the federal level.
The math doesn't work and the situation in California and the situation in New York.
Is a preview of coming attractions in terms of the federal fiscal crisis that's self and understand and other states as well.
So governor if you on the hill would you suggest that this is not the right time to push forward Health Care Reform or is the right time because -- we don't do something about health -- Medicare and Medicaid.
That financial tsunami could be in worse.
-- Alexis of course we have to do something about Health Care Reform the current system is broken but the Democrats are defining Health Care Reform as expanding the program.
Taking care of the uninsured and expanding access to health care is only one piece of Health Care Reform.
Another piece is called cost containment and what they have on the table now is not going to reduce costs it's going to increase costs.
And if you look at the most recent similar model to what they're trying to do in the state of Massachusetts.
While they expanded access somewhat it's costing two or three times what they predicted -- from a cost standpoint that's not sustainable either.
You recently said that governor Sarah Palin's resignation and is an example why the GOP needs -- drastic make over.
A lot people talk about you for 2012.
What would that make over look like.
Well -- I didn't say governor Palin's is -- resignation was an example of a make over I think she's done a remarkable leader from Alaska.
But -- -- -- Alaska but for the Republican Party more broadly obviously we're in the minority for a reason.
Our competitors have done a better job -- getting market share in gaining support of our customers in recent elections.
So we need to do better how do we do that well let's first of all being optimistic and civil and and have an agenda going forward and there's a number of ideas I have in that regard.
But number two we've got to do a better job of solving problems not by just defining it -- how much more can government do in Health Care Reform in education reform and energy and down.
The -- ideas matter we have to have some new ideas the Republican idea factory of late has been stale.
Governor Pawlenty to be continued thank you very much great -- morning all right.
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