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Gambling revenue part of mix to balance state budget

ST. PAUL -- Some legislators are considering gambling revenue to balance the Minnesota budget, one of the few surprises Thursday as the 2010 legislation session began.

Legislators' major job is to plug a $1.2 billion hole in the state budget, a budget with nearly a year and a half left. They also need to look at a much bigger deficit that is likely in the next budget.

The current two-year budget is $30 billion, down $4 billion from the last budget.

Lawmakers came into their session, which must end no later than May 17, with the major divide being simple: Democrats want a combination of budget cuts and tax increases to balance the budget, while Republicans tend to want to balance the budget just by cutting.

On Thursday, a different scenario surfaced, to add gambling to the state's revenue pot.

"Gaming bills are going to get a real look this year, and they should," Rep. Al Juhnke, DFL-Willmar, said.

Juhnke would not say much about the pro-gambling movement, but said a plan could surface in two or three weeks. He said it would include adding a casino to a Twin Cities horse racing track, known as a racino, and video pull tabs in Minnesota bars.

The two changes could bring in $875 million or more a year, Juhnke said.

The key for gambling to success in this year's session, he added, is to spend gambling revenue on a wide variety of areas, such as early-childhood education, a Vikings football stadium and agriculture. If the revenue is spread wide enough, the concept could attract more legislators' votes.

"We are only a handful of votes off in both bodies," Juhnke said of the House and Senate.

Juhnke's leader, however, did not think the gambling proposal has a chance.

While House Majority Leader Tony Sertich, DFL-Chisholm, promised that the proposal would get a hearing, he said that gambling is not a reliable revenue source.

Besides, he added, adding a racino in the Twin Cities would drain business from rural American Indian casinos.

A fair amount of pessimism hung in the air Thursday as lawmakers looked to their job of balancing the budget.

Retiring Sen. Steve Dille, R-Dassel, said he is not optimistic that legislators will be able to put aside partisan differences. He added that he is worried several lawmakers are looking past this session to the election. Eight lawmakers are running for governor and another is in the middle of a congressional campaign.

Dille urged both sides to sit down and focus on the task at hand.

"It has to get done," he said. "It's time for us to put down our sabers."

Sen. Mary Olson, DFL-Bemidji, was slightly more optimistic than some lawmakers, indicating that she senses a cooperative mood among her colleagues.

Rep. Steve Drazkowski, R-Wabasha, was happy to hear Democrats say that at least part of the budget solution is cutting programs.

"Democrats have decided we have to focus on spending," he said. "The public common sense is prevailing."

Drazkowski said he did not see budget cutting high on Democrats' agenda last year, although Sertich said that he must not have been paying attention because Democrats did work on cuts.

"There is hope, as long as we focus on spending," Drazkowski said.