The chief budget adjustment could be replacing $400 million in revenue from the tobacco tax/fee imposed last summer. Tobacco companies have sued, saying the fee is a breach of a settlement they reached with the state in the 1990s.

While Hottinger is hopeful this week’s budget forecast will show enough surplus revenue to cover the potential loss of the $400 million, Rep. John Dorn said the uncertainty about how the courts will rule is troublesome.

“I don’t even know how much we’ll know (by the end of the session),” said Dorn, DFL-Mankato.

Sviggum said the issue will force lawmakers to be cautious, but he noted there’s $317 million reserved from a previous projected surplus for tax relief.

The House will pass property-tax relief and eliminating any harm to married taxpayers from the state not conforming completely with changes in federal tax law, Sviggum said. It will be provided directly to taxpayers rather than as aid to local governments.

“We want it broad-based to affect citizens,” he said.

Hottinger cautioned, however, the $317 million is onetime money, not an ongoing source of revenue for ongoing tax relief.

“Using onetime money to buy down property taxes before an election would not be property-tax relief,” he said.

Sviggum supports Pawlenty’s plan to borrow $2.5 billion for road projects around the state, saying low-interest rates make now an ideal time to borrow — especially when highway construction costs are rising at a much higher rate.

“We can do these projects quicker, we can do them more efficiently and we can do them cheaper,” Sviggum said. “... Highway 14 can be finished between Mankato and Owatonna right now.”

Hottinger doesn’t expect the Senate to go along with the borrowing approach to highway construction. Under the plan, the highway bonds would be repaid with money that ultimately comes from the general fund, leaving less available for schools while leaving debt for Minnesota’s children to repay.

“At some point, politicians need to learn that the short-term solutions have a really negative effect on future generations,” Hottinger said. “But they’re not learning that.”

Whatever the size of the legislative agenda in 2006, the final item — adjournment — must occur no later than midnight May 22.