Kim Strassel reports that Minnesota governor Tim Pawlenty took on his Democratic legislature over spending and tax hikes. And amazingly, Pawlenty won. Strassel:
Upon receiving the last spending bill, [Pawlenty] announced that he would exercise the power of "unallotment," which has been on the books since 1939 and which has been used four times. Under it, the governor is allowed to "unallot" (take away) any state spending for which there is no money to pay. Panicked, the DFL passed tax legislation to cover its blowout spending bills, 10 minutes before the session's end. Too late. The governor said he'd veto the bill and would not be calling back the legislature to do any more mischief. Mr. Pawlenty is now free to strip $2.7 billion from state spending to balance the budget. Tax hikes are dead. He tells me this will be one of the first times in modern Minnesota history that the state will reduce the size of government in real terms, not just slow its rate of growth. "The correlation in recent history has been between job growth and states that have reasonable government cost structures," he says. These cuts, he says, will position Minnesota to take advantage of the recovery when it comes.
The governor's "unallotment" power was central to Minnesota avoiding California's fate. But having a governor committed to low taxes and balanced budgets helped, too.