DFLers freak at Gov. Pawlenty's State of the State proposal for $500 million in new tax cuts amid the $5.5 billion deficit, the PiPress' Bill Salisbury reports. But local Fed guy Art Rolnick, a Dem hero, says the proposal to halve tax rates should be considered, according to the Strib's Pat Lopez and Mark Brunswick. Still, with the guv proposing $300 million more for the state's costliest program, education, his plan doesn't add up. Wait for the budget address Jan. 27.

If you're going to suspend fiscal disbelief for a moment, the Strib's Norm Draper says Pawlenty's education increases will mandate QComp, which guts seniority but Minneapolis has embraced. Does it really work? The PiPress' Megan Boldt quotes educators saying only when it's not forced, but no evidence provided. A plan to tie pay to improved test scores raises ton of questions about whether high-achieving wealthier areas will get richer.

Salisbury's piece has a good rundown of other details, including a plan not to kick kids off MinnesotaCare; adults should be worried. The program has a surplus that DFLers want spent on expanding care; no word if or how Pawlenty will raid it. Expect big cuts in Local Government Aid and social service spending. KSTP looks at the guv's proposed two-year wage freeze for state workers; how 'bout limiting tax breaks for an equivalent period?

The PiPress' Opinionuendo casts a withering glance at Pawlenty's "kitchen table" analogy but serves up some yummy morsels about John Johnson, the former governor referenced in the speech. Strib editorialists note Minnesota's effective business tax rate is actually below national averages, but we should still rely less on corporate taxes. They pump for "high-quality preschool for low-income children." Everybody's spending!

You know the Star Tribune declared bankruptcy last night, right? The paper's Dave Phelps covers the bad news admirably; the paper has created a bankruptcy web page here; my slightly less politic FAQs are here. The bottom line is all the contract arguing goes to a New York bankruptcy court and the paper keeps publishing. We will know a lot more about the Strib's financials; they made $26 million last year, down from $115 million two years earlier, but their debt is crushing.

Election contest minute: The Strib's Mike Kaszuba notes Franken wants the trial to start Jan. 26 and last three working weeks; Coleman — who proposed Feb. 9 and a longer schedule — complains. A three-judge panel will begin deciding today. The Franken forces say their opponent hasn't shown how he'll pick up necessary votes, according to the PiPress' Dave Orrick. Cameras likely will be allowed in the courtroom, AP's Patrick Condon writes.

Not two senators, but two Senate offices: The Strib's Kevin Diaz reports Coleman's Senate office will be allowed to stay open until Feb. 4 to process constituent requests. It had been shut down; Coleman wanted until early March.

That whole global warming thing? Hey, it's winter! The Public Utilities Commission approved transmission lines for Big Stone II, a South Dakota coal-spewer. The Strib's H.J. Cummins notes the owners are unhappy expenses got capped; environmentalists are bummed by 4 million new tons of CO2 annually. A smaller, dirtier plant will be closed. MPR's Stephanie Hemphill says green forces plan to appeal.

MPR has been doing great work on the housing crisis, and Brandt Williams checks in with a fascinating report on repopulating foreclosure-heavy neighborhoods. Folks qualified for a $10,000 Minneapolis Advantage loan if they bought a house on a block with as few as one board-up. Citywide, the loans have gone to mostly white folks, which has some northside African-Americans upset. Others call it diversity. Half of north side buyers came from the 'burbs.

Great, forward-looking Strib ops piece by a local researcher, who notes the retail collapse leaves us with a lot of new, ugly, useless malls we'll wish we'd never built. One-eighth of U.S. retail space will soon be vacant, and these single-use concrete canyons will drag down nearby home values for years. The first rule of holes is to stop digging, and localities must limit new development to soak up the newly abandoned parcels.

Yummy from the Strib's Lora Pabst: Fifty Bloomington kids get a "biodiesel day" off when cold temps gum up school buses' alternative fuel. Below minus-10 is a problem, but that never happens in Minnesota. Other districts apparently have difficulties, stemming from a state 2 percent alt-fuel mandate. KSTP video here.

KSTP says Minnesota apple growers are mad orchards in Canada and Washington are selling Honeycrisp apples. They claim the 'foreign' apples taste bland and want to limit where they can be grown commercially.

Nort spews: Lawrence Westbrook displayed cojones the size of cantaloupes as the Gopher men's hoopsters beat Bucky Badger in his own lair, 78-74. The Gophs move to 4-1 in the Big Ten; lovely Sore Loser here. And the Wild keep scoring goals, beating Edmonton 5-1. Canadian Sore Loser here. The Business Journal's John Vomhof Jr. reports that U.S. Bank will be a major Target Field sponsor.