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 State budget battle tearing on legislature's image

The governor and legislature are once again going down to the wire trying to figure out how to erase a huge budget deficit.

In our exclusive KSTP/ Survey USA Poll, Minnesotans have some definite ideas about how they'd solve the $4.6 billion problem.

Gambling revenue is very popular with Minnesotans—in fact, 40 percent are in favor a combination of spending cuts and gambling revenue to balance the budget, 30 percent favor spending cuts, and tax increases and18 percent favor budget cuts alone.

While only seven percent favor tax increases as the primary budget solution.

Republican Sen. Dick Day is one of the legislature's biggest boosters of gambling revenue. In particular, he's been a long-time proponent of allowing slot machines at Canterbury Park Race Track.

The poll shows that 79 percent of Minnesotans approve of that idea, while just 18 percent are opposed.

"The biggest problem is we're hung up with the DFL and a few people who are just anti-gambling Republicans," Day said.

If taxes are increased, the most popular is a higher income tax on the wealthy—favored by 34 percent—followed by tobacco and alcohol taxes, across-the-board income taxes, and a sales tax on clothing.

The least popular idea: Taxing Internet downloads.

Gov. Tim Pawlenty has already vetoed a $1 billion tax bill, but he also says that gambling revenue is off the table—that explains why there's another stalemate at the Capitol.