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Budget Transmittal Letter/Page 2 • <br />As I said in the State of the State address, I don't want to manage government, I want to change <br />it. While the challenges before us are great, and sacrifices will be required, we should also view <br />this as a great opportunity to focus government on what's most important and to improve the <br />way we do things. The primary way we'll accomplish that is through our spending <br />recommendations: "doing the right things well," and eliminating spending that is not a high <br />priority or not a particularly appropriate role for government in a time of scarcity. But we will <br />make other important changes as well: <br />• Recreating the state Department of Education, focusing its efforts more directly on the <br />core mission of improving public education and holding it accountable; <br />Implementing the long-planned merger of the Department of Trade and Economic <br />Development and Economic Security to reduce administration and improve the <br />performance of our workforce development efforts; <br />Changing funding practices so that entities such as the Racing Commission, Gambling <br />Control Board, Amateur Sports Commission, and Campaign Finance and Public <br />Disclosure Board are paid for by user fees_ <br />Finally, we must work to return the state to fiscal stability. My budget restores the Budget <br />Reserve to $500 million by the end of the biennium. Part of the responsibility to balance the <br />budget is to prepare for the possibility of economic conditions worsening by putting some money <br />aside for a future rainy day even while it's still stormy outside. The budget also assumes a return <br />to structural balance in the 2006-07 biennium, including some modest growth in the basic K-12 <br />education funding formula. These provisions are crucial to the state's financial health. <br />The challenges before us are daunting, but we are up to the task. The citizens of the state deserve <br />no less than our collective courage to make the difficult decisions that are required. <br />Sincerely, <br />`~ ~--, <br />Tim Pawlenty <br />Governor of Minnesota <br /> <br />