MAWG: MN Governor Candidates

Incumbent Arne Carlson (IR) and State Senator John Marty (DFL), respond to questions on rural issues put forth by the Minnesota Association of Wheat Growers:

1. What do you think is the most important issue facing rural Minnesota today, and how would you help to address it if elected Governor?

   CARLSON:

   Without a doubt, creating a vital and thriving economic environment. We are currently working on value-added products to create income in rural MN. Those would include ethanol, corn fructose and other processing of raw products here in MN. We need to find new industrial uses for ag products and are working with AURI (Ag Utilization and Research Institute) to achieve that goal. It is also important for us to find more overseas markets to improve the prices farmers get for their commodities.

   MARTY:

   Jobs are the most important issue. Young people shouldn't be forced out of their communities because they can't find good jobs. We need to encourage development of the value-added food industry and the energy industry, including ethanol, biomass, and wind power. Greater MN offers a well-educated work force previously available only in larger cities. We must reform the workers comp. system through allowing farmers to pool workers comp., re-regulating the insurance industry, working to prevent fraud, and removing litigation from the system. We must offer small businesses technical assistance and access to needed capital.

2. Many farmers feel that the regulatory climate, as well as environmental laws and the state agencies that enforce the laws, has become too restrictive in MN. Do you agree, and if so, what should be done to remedy the situation?

   CARLSON:

   I think we need to recognize that farmers have a strong interest in protecting the land. The problem is that it is difficult for farmers to pass along the costs of cleanup, etc. I share farmers' concerns about delays in the permitting processes with state agencies. Therefore, I have urged state agencies involved in protecting the environment to work closely together and help farmers to make changes necessary. I believe we need to try our best to achieve voluntary compliance in implementing more environmentally sound practices rather than using a strictly regulatory approach. Last year, I signed into law first-of-its-kind legislation to make $20 million available in low-interest loans available to farmers to upgrade feedlots and implement other conservation measures.

   MARTY:

   We must look at each regulation or proposed regulation separately in a thoughtful manner to ensure that it is sensible and not overly burdensome. Sound environmental policies and profitable agricultural policies can work hand in hand.

3. What can MN do to encourage greater development of value-added ag processing within its borders?

   CARLSON:

   I have and continue to be very supportive of value-added initiatives. For example, I have been a leader in the nation for the support of ethanol. MN ethanol production has nearly tripled during the time I have been governor and a number of other state ag commissioners have told my commissioner, Elton Redalen, they are envious about the amount of our state's financial support for ethanol. In 1993, we doubled the amount of money available from the state for ethanol producer payments. I signed into law a $1 million revolving loan fund to help construct new ethanol processing plants, added another $1.5 million in 1994, and am proposing adding another $2 million in 1995. I have also signed legislation appropriating $250,000 to the MDA's Rural Finance Authority for a pilot project to help farmers purchase stock in new value-added processing plants. I will seek additional funding for this program in the 1995 legislative session.

   MARTY:

   Governor Carlson's recent veto of the ethanol bill is an example of what not to do. We must provide tax incentives, access to capital, and technical assistance to small businesses, similar to what has been done to encourage growth in the forest products field.

4. Do you think the state's property tax system should be reformed? Would you favor funding education through the General Fund rather than property taxes?

   CARLSON:

   The state now pays more than 60 percent of education costs with the rest coming from local property taxes. The state also funds a variety of equalization measures designed to reduce disparities in local capacity to raise money. I sense that Minnesotans would like to see the state assume an even higher share, and I agree. Each percentage point that we raise the state share adds about $50 million to the budget. Our sales and income taxes are already among the highest in the nation and Minnesotans do not support seeing their taxes raised further. So we need to identify where there are opportunities for shifting state priorities and funding. One cannot really examine the revenue dilemmas without understanding the demands for spending. At my request, the State Planning Agency is conducting a detailed analysis of the driving forces behind state spending. This study will provide the information necessary to lay the groundwork for meaningful tax reform in 1995. I have demonstrated that I am willing to push for tax reform, but the Governor's support alone is not sufficient to change a system this complex and controversial. I am willing to work with legislators to develop a reform plan that can pass legislative muster and that I will be willing to sign into law.

   MARTY:

   Yes, property tax reform is one of my priorities. Because farmers must have large pieces of land for their livelihood, they are forced to shoulder too large a portion of the property tax burden. I believe that it is unfair to base the amount of resources allocated to the education of children on the amount of revenue a community is able to generate through property taxes, and support moving toward funding education through the general fund.

5. Why should rural Minnesota voters select you over your opponent?

   CARLSON:

   My record over the last four years shows concern for agriculture and my commitment for this vital Minnesota industry. I recognize agriculture is responsible for nearly 1/4 of the jobs in this state and my record shows it. I am an extremely strong advocate for value-added industry such as ethanol production. Our administration led the fight in Washington, D.C. to bring home over $466 million in federal flood relief after the floods of '93- this was more than double the original aid proposal. I pushed for a $50 million state-funded flood relief package that was significantly reduced by the legislature. My administration set aside $20 million for low-interest loans to upgrade feedlots and implement other conservation practices. I spearheaded a property tax relief effort aimed at farmers in 1993 which resulted in $30 million in relief, and we added an additional $1.8 million for ag property tax relief in 1994. I have worked closely with Wisconsin Gov. Tommy Thompson to change the federal milk pricing system which unfairly discriminates against midwestern dairy farmers. If re-elected, I will continue to do all I can to support the farmers who form the backbone of our state's economy.

   MARTY:

   My commitment to property tax reform. Gov. Carlson said publicly at the Chamber of Commerce debate, and on other occasions, that he feels residential property taxes should be increased so that commercial/industrial property taxes can be decreased. My commitment to supporting and encouraging rural job growth, fair funding of schools, workers comp. reform, and health care reform. My running mate, Nancy Larson, who works as an advocate for small communities, lives in a rural area (Dassel) and is an eloquent spokesperson for the needs of greater Minnesota. As lieutenant governor, she will be uniquely qualified to help make the changes that are needed to ensure that rural MN has the tools it needs to prosper. My record of supporting farm issues: I have an eight-year legislative cumulative rating of 89% by the Farmers Union.