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  • District 23 Sen. Kathy Sheran, DFL, debates Republican challenger Peter Trocke at a Greater Mankato Growth event Thursday night at the City Center Hotel. Pat Christman

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October 22, 2010

Sheran, Trocke at odds on how to solve state’s deficit dilemma

Question about Emmer’s proposed cuts sparks biggest debate between candidates

By Tim Krohn Free Press Staff Writer

MANKATO — The debate between State Sen. Kathy Sheran and her Republican challenger Peter Trocke was marked by disagreements on the cause of the state budget deficit and approaches to bring it into balance.

Trocke said the DFL-controlled Legislature’s spending turned a $2 billion surplus four years ago into a $6 billion deficit and called for cuts in “unnecessary” spending, redundant agencies and said tax increases are untenable in a poor economy.

Sheran, serving her first four-year term, said the global economic collapse, not the Legislature, created the deficit, and said that Minnesota is 47th among the states in its per capita debt.

She called for more efficiency in government, cuts to some services, restructuring the tax system, and raising taxes as a last option.

While a civil debate in which both found agreement on several issues, an audience question about Republican gubernatorial candidate Tom Emmer drew the sharpest responses. The questioner stated that Emmer has proposed “drastic cuts” and wanted to know how the candidates thought that could affect outstate Minnesota.

“I know Tom,” Trocke said, “I don’t think his cuts are drastic.” Trocke said he didn’t believe outstate would suffer dramatically or more than other parts of the state.

“There is so much inaccurate in what I heard I don’t know where to start,” Sheran responded.

Saying she has seen Emmer’s work in the Legislature, Sheran said his proposed cuts “are Draconian” and would harm the elderly and others.

Trocke, who worked for 20 years as assistant sales manager at Lager’s in St. Peter and who owns a retail business with his wife, repeatedly called for lower taxes and less regulation on small business. He said only businesses can spur job growth and grow the economy.

“The state needs to get its heels off the neck of small businesses.”

On the question of whether Minnesota’s corporate income tax rate of 9.8 percent should be lowered, Sheran said she would support lowering it because it is among the highest in the country. But Sheran said that when all business taxes and deductions are taken into account, Minnesota business taxes are the 15th lowest in the country.  

Trocke said the high corporate income tax puts Minnesota at a competitive disadvantage. “I would be in favor of reducing or even eliminating the corporate income tax.”

One issue both mostly agreed on is a proposal for a racino.

Sheran said she is open to a racino but said the state needs to be careful with the expansion of gambling and the gambling-related problems it can bring.

Trocke said he supports a racino and didn’t believe it would cause gambling addictions. He said the issue has been held up because DFL lawmakers “receive so much money for their campaigns from the Indians.”

Said Sheran. “Apparently all those contributions aren’t affecting my decision.”

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