QUESTION #3 - October 28, 1994: Today, Minnesotans feel government is less relevant to their lives and are having a hard time seeing how the benefits associated with government are worth the costs. As the chief executive of Minnesota's state government, how will you demonstrate the importance of state government to the citizens of Minnesota. In other words, where are the costs resulting in clear societal gains? Suggested issues you might address include information infrastructure, public education, health care, etc. Governor Carlson's response to the third question. When Minnesotans discuss government, their first concern is the amount of money that comes out of their pocket to pay for services. I believe the price of government must not increase further; in fact I would like to see the cost go down. In order for this to happen state spending must not grow faster then the growth of personal income. This was not the case in the late 1980's when state spending grew at a rate of eight percent and personal income grew by 6.9 percent. Since 1991, we have reversed this trend - personal income has grown an average of 5.6 percent compared to 5 percent government spending growth. I have been very clear and consistent on the need to hold the line on spending. I have vetoed over $500 million in new taxes, and signed a tax-cut bill that reduced taxes by $57 million this year and $128 million next year. I was able to sign that bill because the state is in good financial shape. After inheriting a $2 billion deficit in 1991, we were able to put a stop to run-away government spending and today we enjoy a $623 million surplus. In addition to the cuts contained in the 1994 tax bill, we also included a requirement that the governor propose and the legislature adopt a target percentage that state and local revenues comprise of personal income in the next two bienniums. This publicizes the "Price of government" for the taxpayers, and provides them with one more effective tool to use in evaluating the cost of government. The process for setting this figure for the 1995 session is one that wil be done jointly by the Commissioner of Revenue, the Governor, and legislative leadership Minnesota is renowned for its superior quality of life, partially enhanced by our government services. However, we need to maximize efficiency and streamline management to deliver service needed at the lowest possible costs. We must evaluate current services and make sure that those which are not proving beneficial or are inefficient are reduced or cut, and that those programs that do work are better funded. The state has an important role to play in maintaining a modern highway system, providing top-rate public education, and working towards the goal of market driven reforms of the health care system. These are some of the areas where government can and should do its best work. But if we are going to increase state money being pumped into any of these areas we must demand quality results. If we can increase the quality of government by demanding efficiency and results, we can hopefully regain the trust and respect of the citizen of Minnesota. Changing government to fit the needs of the people does not seem to be a goal of my opponent. He has pledged to increase the cost of government by raising taxes and increasing the size of government. Sen. Marty does not seem to understand history. No nation has ever taxed itself into prosperity. We need to encourage investment and achievement, not penalize success and hard work. My question for Senator Marty is about making tough choices to curb the cost of government. If faced with a budget deficit, similar to the $2 billion problem Minnesota faced in the early 1990's, would you have the courage to cut government programs to balance the budget? Would you be able to stand up to the government unions and tell them you are freezing wages for one year?