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Palace holds first of monthly movies
The first of what will become a series of monthly movies at the Palace started this past weekend with ET.

According to BMAT board chairman, Ben VanderKooi, approximately 150 tickets were sold for the three events, shown Friday and Saturday night as well as a Sunday matinee.

One of the models being used for the Palace is a similar theatre in Fergus Falls. According to VanderKooi, that theatre typically averages 25 to 50 patrons per show, so the 150 for the three shows is encouraging.

If you have any suggestions, as to what movies you would like to see at the Palace, call the Carnegie Cultural Center to leave your ideas, or you can e-mail them to info@rockartsrock.com.

Fitness Center’s new equipment arrives
The much anticipated new exercise equipment for the city owned fitness center has arrived in town.

City crews spent all day Tuesday and Wednesday assembling and installing the new equipment, with the first patrons giving it a test run on Wednesday night.

The According to Darrell Huiskes, Luverne Public Works Director, the eleven new stations are all state of the art equipment.

The total bill for the fitness center upgrade is approximately $30,000 according to Huiskes.

Although the new equipment is available for use immediately, an open house is scheduled for Jan. 21, which will also coincide with the grand opening of the ladies only fitness room.

With Christmas over, can the Winter Carnival be far behind?
Of course not. This year the Luverne Music Booster’s Winter Carnival, will be on Saturday, Jan. 25.

The Winter Carnival is a primary fund raising event for the Music Boosters to help pay for such projects as Music Camps, band and choir trips and scholarships.

The event runs from 5 to 9 p.m. in the Luverne High School Gymnasium and all of your favorite events, such as the cake walk, Bingo, games, booths and raffle drawings will be held.

Historical Society to hold annual meeting
If you like history, particularly Rock County’s, you should try to attend the first of the tri-annual meetings of the Rock County Historical Society.

The meeting will be held at the Hinkly House at 1:30 p.m. Saturday, Jan. 18, 2003 .

Since their most recent project was moving the Fitzer Century barn to a foundation at the Rock County Fairgrounds, the program will include a talk on historic barns.

The barn is now sitting south of the 4-H building on Freeman street if you want to drive by and check it out.

The Historical Society plans to use the barn as a farm related museum with items that pertain to rural life in Rock County.

Dayton pushes for funding promises
Senator Mark Dayton announced he would be introducing legislation to require the federal government to fully fund its long-promised 40 percent share of special education costs.

The legislation would provide an additional $250 million in additional funds for Minnesota schools this year to educate special needs students.

Dayton’s goal is to get the government to increase from its current 16 percent program cost to 40 percent beginning in fiscal year 2004.

Currently, schools are absorbing the shortfalls with other school funds, according to Dayton.

What this means in Luverne is that roughly $250,000 in special education funding comes out of the district’s general fund, when it should be coming from the federal government.

Publisher Roger Tollefson can be contacted by e-mail at tolly@star-herald.com

Robert Baustian

Robert "Bob" Joseph Baustian, 41, El Cajon, Calif., formerly of Luverne, died Monday, Jan. 6, 2003, in his home.

Services were Saturday, Jan. 11, at St. Catherine Catholic Church in Luverne. The Rev. Andrew Beerman officiated. Burial was in the parish cemetery.

Robert Baustian was born to Lester and Leora (Schievelbein) Baustian, on Aug. 25, 1961, in Luverne. He was baptized and confirmed at St. Catherine Catholic Church in Luverne. He graduated from Hills-Beaver Creek High School in 1980. He was active in the wrestling program in school.

He married Rose Boll in 1980 at St. John Lutheran Church in Luverne. The couple later divorced. He attended Lakes Area Vo-Tech Airline Mechanic School in Watertown, S.D.

He entered the U.S. Navy in March 1983. He served as crew chief as a specialist mechanic on jet engines for more than 13 years. After the Navy, he joined the Army National Guard where he was head mechanic in the tank division. He had only five months left until a 20-year retirement. He recently worked as a mechanic on trucks and buses for Sterling Ford Motor Company in Miramar, Calif.

Mr. Baustian loved hiking, fishing and scuba diving with his two daughters. He was always joking.

Survivors include two daughters, Mallisa Baustian and Malinda Bustian, both of El Cajon; his parents; four brothers, Paul (Denae) Baustian, Harrisburg, S.D., Brian (Barb) Baustian, Garretson, S.D., Greg (Beth) Baustian, Worthington, and Kevin (Wendy) Baustian, Knoxville, Tenn.; three sisters, Anne (fiancée, Doug) Baustian, Black Hawk, S.D., Susan (Kevin) Culligan, Apple Valley, and Mary (Don) Olson, Denison, Iowa; and 14 nieces and nephews.

Dingmann Funeral Home, Luverne, was in charge of arrangements.

Panther boys stroll past Minneota Friday

By John Rittenhouse
The Ellsworth boys’ basketball team improved its season record to 13-1 with a 65-41 Camden Conference victory in Minneota Friday.

The home-standing Vikings kept the game close through three quarters of play, but the Panthers canned nine of 12 shots in the fourth quarter to spur a 24-7 scoring run that gave EHS its fourth consecutive victory.

"The defense was there, and we made up our minds to run our offense in the second half. Those were the keys," said Panther coach Ken Kvaale.

A lack of patience hurt the Panthers during the first two quarters of the game, which ended with Ellsworth sporting 14-9 and 27-26 leads.

The Panthers increased the difference to seven points (41-34) by the end of the third quarter before putting the game away with a big fourth period.

Curt Schilling, who had 10 rebounds, was plagued with foul trouble most of the night. He did lead the fourth-quarter charge by scoring all eight of his points in the period.

Brant Deutsch, who led the Panthers with 12 rebounds, scored six of his 14 points in the fourth period. Travis Jenniges, who had five assists and three steals in the game, scored six of his 10 points in the final stanza.

Dylan Kvaale scored a team-high 19 points and distributed five assists in the game. Blake Brommer chipped in three steals to the cause.

Ellsworth plays in Ivanhoe tonight before hosting Lakeview Tuesday.

Box score
Schilling 3 0 2-2 8, Jenniges 3 1 1-2 10, Kvaale 5 3 0-0 19, Sieff 0 0 2-2 2, Deutsch 6 0 2-3 14, Brommer 1 2 0-0 8, Gacke 1 0 0-0 2, Klaassen 1 0 0-0 2.

Team statistics
Ellsworth: 26 of 59 field goals (44 percent), seven of nine free throws (78 percent), 44 rebounds, nine turnovers.

Patriots set pace in RRC with 7-0 mark

Hills-Beaver Creek sophomore guard Tyler Bush drives to the basket during the first half of Tuesday's boys' basketball game against Mountain Lake-Butterfield-
Oden in Hills.

By John Rittenhouse
The Hills-Beaver Creek boys’ basketball team went 2-1 while playing three games in a six-day span.

The Patriots beat Fulda by five points in Fulda Thursday before Lincoln HI snapped their three-game winning streak in Ivanhoe Monday. H-BC returned to the court Tuesday in Hills, nipping Mountain Lake-Butterfield-Odin by one point to up their Red Rock Conference record to 7-0.

The 8-4 Patriots host Westbrook-Walnut Grove Friday before playing West Lyon near Inwood, Iowa, Saturday.

H-BC 51, ML-B-O 50
The Patriots overcame a rough start to remain unbeaten in RRC play with a one-point victory over the Wolverines in Hills Tuesday.

ML-B-O dominated play on the inside while opening a 17-10 lead in the first quarter, but the Patriots regrouped to outscore the Wolverines 41-33 the rest of the way to notch a win.

H-BC moved into a 30-27 lead by halftime after outscoring ML-B-O 20-10 in the second quarter, and the difference remained three points (42-39) in H-BC’s favor heading into the fourth quarter.

ML-B-O did have the ball with five seconds remaining trailing by one point, but a running shot in the lane drew iron and bounced away from the target as time expired.

"ML-B-O is a pretty good team," said Patriot coach Steve Wiertzema. "They are big and quick. We did a lot better job of playing defense and rebounding in the second half. They only had three offensive rebounds in the second half, and they were killing us on the boards in the first half."

Tyson Metzger scored 17 points, pulled down seven rebounds and charted three steals for H-BC. Trey Van Wyhe netted 11 points and collected nine caroms. Tyler Bush contributed seven assists, six rebounds and three steals to the cause. Kale Wiertzema added six rebounds and six assists.

Box score
Bush 3 0 0-1 6, Wysong 0 0 0-0 0, Roozenboom 2 0 0-0 4, Wiertzema 1 1 2-4 7, Metzger 5 1 4-7 17, Leuthold 3 0 0-0 6, Van Wyhe 4 0 3-4 11.

Team statistics
H-BC 20 of 49 field goals (41 percent), nine of 16 free throws (56 percent), 36 rebounds, 15 turnovers.
ML-B-O: 20 of 54 field goals (37 percent), seven of 10 free throws (70 percent), 27 rebounds, nine turnovers.

LH 93, H-BC 69
A three-game winning streak came to an end for the Patriots when they ran into a hot-shooting Lincoln HI team in Ivanhoe Friday.

The Rebels drained 57 percent of their field goals in a game that belonged to LH after the first quarter.

H-BC led 21-20 after eight minutes of play, but the Rebels outscored the Patriots 73-48 the rest of the way to win by 24.

LH went on a 30-11 scoring run in the second quarter to open a 50-32 halftime lead that H-BC sliced to 13 points (70-57) by the end of the third quarter. The Rebels iced the contest by outscoring H-BC 23-12 in the fourth quarter.

Metzger scored 20 points, collected eight rebounds and passed for six assists for H-BC. Wiertzema added 18 points, seven rebounds and six assists, while Tyler Bush scored 10 points, distributed six assists and charted four steals. Van Wyhe added six rebounds to the cause.

Box score
Bush 4 0 2-2 10, Wysong 0 0 0-0 0, Jackson 0 0 0-0 0, Roozenboom 3 0 3-4 9, Broesder 0 0 2-2 2, Wiertzema 3 3 3-3 18, Metzger 4 4 0-0 20, Leuthold 1 0 0-2 2, Van Wyhe 3 0 2-4 8, Spykerboer 0 0 0-0 0.

Team statistics
H-BC: 25 of 62 field goals (40 percent), 12 of 17 free throws (71 percent), 30 rebounds, 18 turnovers.
LH: 37 of 65 field goals (57 percent), 11 of 15 free throws (73 percent), 29 rebounds, 19 turnovers.

H-BC 56, Fulda 51
The Patriot boys won their sixth consecutive conference tilt when they bested the Raiders by five points in Fulda Thursday.

The Raiders were billed as one of the RRC’s top teams in the preseason, but surprising H-BC continued to turn the heads of area fans by besting Fulda in its own gym.

H-BC led 11-8 after eight minutes of play before outscoring the Raiders 22-17 in the second quarter to boast a 33-25 advantage at the intermission.

Fulda trimmed the difference to five points (46-41) by the end of the third quarter before falling by five when both teams scored 10 points in the fourth period.

Metzger had another big game for H-BC by leading the Patriots with 26 points and sharing the team lead in rebounding with Leuthold by picking up seven caroms.

Wiertzema contributed 11 points and seven assists to the winning cause. Bush added seven assists, six rebounds and three steals.

Box score
Bush 2 1 1-2 8, Wysong 0 0 0-0 0, Roozenboom 0 0 3-4 3, Wiertzema 0 3 2-9 11, Metzger 4 3 9-14 26, Leuthold 0 0 4-6 4, Van Wyhe 2 0 0-1 4.

Team statistics
H-BC: 15 of 34 field goals (44 percent), 19 of 36 free throws (53 percent), 27 rebounds, five turnovers.
Fulda: 18 of 48 field goals (38 percent), eight of nine free throws (89 percent), 27 rebounds, 15 turnovers.

Bonnie Johannsen

Bonnie Johannsen, 57, Luverne, died Thursday, Jan. 9, 2003, at Luverne Hospice Cottage in Luverne. She first battled breast cancer in 1990 and then had a recurrence in 2000.

Services were Saturday, Jan. 11, at First Presbyterian Church in Luverne. The Revs. John Pehrson and David Feltman officiated. Burial was in Maplewood Cemetery, Luverne.

Bonnie Smith was born to William C. and Marguerite N. (Schuld) Smith on Jan. 29, 1945, in Pipestone. She spent her early years near Kenneth. She attended school at Willow Lake, S.D., Brandon, S.D., Hatfield and Pipestone. Her family moved to Luverne in 1959. She graduated from Luverne High School in 1963. She worked for NW Bell Telephone as an operator from 1963-1970.

She married Jim Johannsen on Oct. 3, 1965, at First Presbyterian Church in Luverne. She was the dispatcher and bookkeeper for Johannsen Trucking until her husband retired in 1998.

Mrs. Johannsen was a member of First Presbyterian Church in Luverne. She taught Sunday School for more than 25 years, was a member of Mary Circle since 1966 and played in the bell choir. She enjoyed playing pinochle and bridge and never missed Tuesday morning coffee. She loved to quilt and sew.

Survivors include her husband, Jim Johannsen, Luverne; one son, Mark Johannsen, and his friend, Karrie, Minneapolis; one daughter, Crystal (Cory) Tiesler, Luverne; one grandson, Tannin Brooks Johannsen; her mother, Marguerite Smith, Luverne; one brother, Randolph R. Smith, Swansville; four sisters, Linda L. (John) Feikema, Orange City, Iowa, Susanne L. (Arlan) Stegenga, Austin, Shirlee A. (Kevin) Haraldson, Sauk Rapids, and Lanette J. (Scott) Szymkowicz, Mason, Ohio; numerous nieces, nephew, cousins; and other family and friends.

Mrs. Johannsen was preceded in death by her father.

Engebretson Funeral Home, Luverne, was in charge of arrangements.

Ellsworth girls are unbeaten in January

By John Rittenhouse
The Ellsworth girls’ basketball team put together its second four-game winning streak of the season after posting a pair of victories since Friday.

Ellsworth nipped Minneota by five points in a Camden Conference clash played in Ellsworth Friday. The Panthers beat Southwest Star Concept by 12 points in Okabena Monday.

Ellsworth, 8-4 overall and 4-1 in the conference, hosts Lincoln HI Friday and plays in Cottonwood Tuesday.

Ellsworth 60, SSC 48
The Panthers extended their streak to four straight wins by besting the Quasars by 12 points in Okabena Monday.

Jenna Groen led the way by scoring 30 points and sophomores Laurel Drenth, Marla Groen, Brittney Kramer and Amy Timmer scored a combined 29 points for an EHS squad that led at every quarter break.

"I was very proud of the all-around play of the Panthers," said EHS coach Dean Schnaible. "It was a great team victory. Jenna Groen was very difficult to stop, and the sophomores scored from the inside and the perimeter."

Groen, who had five assists and three deflections in the game, scored 20 points in the first half to help the Panthers take 20-14 and 35-32 leads at the first two quarter breaks.

The Panthers led 45-40 heading into the fourth quarter, when Groen scored seven points to lead a 15-8 scoring cushion that gave EHS a 12-point win.

Box score
M.Leuthold 0 0 0-0 0, Jenniges 0 0 0-0 0, Drenth 3 0 0-0 6,, J.Leuthold 0 0 1-2 1, M.Groen 3 0 0-0 6, J.Groen 8 1 11-16 30, Kramer 3 0 0-0 6, Timmer 4 0 3-6 11.

Team statistics
Ellsworth: 22 of 44 field goals (50 percent), 15 of 24 free throws (63 percent), 26 rebounds, 14 turnovers.
SSC: 17 of 35 field goals (49 percent), 14 of 21 free throws (67 percent), 24 rebounds, 13 turnovers.

Ellsworth 57,
Minneota 52
The Panthers turned in a complete performance while upending the Vikings by five points in Ellsworth Friday.
Ellsworth opened a five-point lead in the first quarter and never trailed in the game before winning by five points in the end.

"We’ve been playing really good basketball, and this was the best game we played all year," said Panther coach Schnaible.

"We took good care of the ball, and converted some pressure free throws down the stretch. It was a great team effort. All of the girls who played were on the same page."

Ellsworth led 13-8 at the end of the first quarter before sporting a 25-17 lead at the intermission. Minneota trimmed the difference to five points (36-31) in the third quarter, but the Vikings couldn’t catch an Ellsworth team that drained nine of 13 free throws in the fourth quarter.

Jenna Groen scored 24 points and passed for three assists in the game for EHS. Drenth, who had a double-double with 15 points and 10 rebounds, blocked three shots and registered four deflections for the winners. Timmer added 10 points to the cause, while Missy Leuthold had three blocked shots, two steals and two assists.

Box score
M.Leuthold 2 0 0-0 4, Jenniges 0 0 2-2 2, Drenth 6 0 3-5 15, J.Leuthold 0 0 0-0 0, M.Groen 1 0 0-0 2, J.Groen 7 2 4-6 24, Kramer 0 0 0-0 0, Timmer 4 0 2-2 10.

Team statistics
Ellsworth: 22 of 49 field goals (45 percent), 11 of 15 free throws (73 percent), 25 rebounds, 11 turnovers.
Minneota: 23 of 50 field goals (46 percent), five of 13 free throws (38 percent), 29 rebounds, 11 turnovers.

Dragons knock off key RRC foes

Adrian’s Jenna Honermann (21) and Kylie Heronimus (right) wrestle for a loose ball with a Fulda player during Monday’s Red Rock girls’ basketball game in Adrian. Adrian nipped the Raiders 75-71 in overtime to up their RRC record to 8-0.

By John Rittenhouse
The Adrian girls’ basketball team recorded a pair of crucial Red Rock Conference wins to take control of the chase for a league championship.

The Dragons bested Red Rock Central by 16 points in Adrian Friday before nipping Fulda by four points in overtime Monday in Adrian.

Adrian’s record is 10-2 overall and stands as the RRC’s lone unbeaten team in league play with an 8-0 mark. The Dragons take a four-game winning streak to Westbrook tonight and they host Mountain Lake-Butterfield-Odin Tuesday.

Adrian 75, Fulda 71
The Dragons outscored Fulda 12-8 in overtime to pull out a four-point victory during an exciting game played in Adrian Monday.

AHS appeared to be in control of the game when it took a 46-35 lead into the fourth quarter, but the Raiders opened the final period with a 20-3 run to take a 55-49 advantage with 4:15 left to play in regulation.

The Dragons climbed within two points of the Raiders five times as the period progressed before knotting the score at 63 when Ashley Cox converted a layup with 13.1 seconds remaining.

When Fulda’s final shot of regulation play drew iron in the final seconds, the game went into overtime.

Adrian never trailed in the overtime. Maria Gengler snapped a deadlock at 66 with a field goal at the 1:39 mark, giving the Dragons the lead for good. Jenna Honermann drained four consecutive free throws with less than one minute remaining, and Cox and Andrea Lonneman added one charity shot each to help put the game away.

Gengler, who had 23 points and 14 rebounds for the winners, gave the Dragons a 10-4 lead with a field goal with 3:40 remaining in the first quarter. Fulda, however, trimmed the difference to five points (16-11) at period’s end.

Field goals from Cox and Gengler in the first two minutes of the second quarter increased Adrian’s lead to nine points (20-11) before the Raiders countered with a 12-6 surge that made it a 26-23 game with 2:23 remaining in the first half.

Fulda didn’t get any closer to catching AHS and trailed 32-26 at the intermission after Lonneman recorded a field goal with three seconds left.

A 6-0 run capped by a field goal from Kylie Heronimus to start the third quarter gave the Dragons their biggest lead of the game at 38-26. Fulda closed the gap to nine points twice as the third period progressed before facing an 11-point deficit at quarter’s end.

Honermann contributed nine assists, seven rebounds and five steals to the winning cause, while Heronimus charted seven assists. Lonneman scored 21 points.

Box score
Heronimus 5 0 2-4 12, Honermann 2 0 4-4 8, Henning 1 0 0-0 2, Cox 2 0 5-6 9, Lonneman 9 0 3-4 21, Gengler 10 0 3-6 23, Wolf 0 0 0-0 0

Team statistics
Adrian: 21 of 50 field goals (42 percent), 17 of 24 free throws (71 percent), 30 rebounds, 19 turnovers.
Fulda: 22 of 56 field goals (39 percent), 16 of 21 free throws (76 percent), 21 rebounds, 17 turnovers.

Adrian 67, RRC 51
The Dragons removed thorns from their sides when they bested the Falcons by 16 points in Adrian Friday.

RRC is the team that ousted AHS from the post-season playoffs last season and handed the Dragons their first loss of this season during a tournament game played in Lamberton in December.

Adrian wanted some payback against the Falcons and got it by outscoring the visitors 44-24 in the second half.

"This was a good win for us to get," said Dragon coach Randy Strand. "It was good defense and good rebounding on our end that made the difference."

The Dragons, who led 15-11 after eight minutes of play, found themselves facing a 26-23 deficit heading into a third quarter in which AHS outscored RRC 22-8 to gain a 45-34 lead. Adrian continued to play well in the fourth quarter, using a 22-17 scoring cushion to make it a 17-point difference in the end.

Andrea Lonneman, who had 10 rebounds for the winners, scored 13 of her team-high 26 points during the decisive third quarter.

Maria Gengler had a triple-double for the winners by registering 20 points, 12 rebounds and 11 blocked shots. Gengler also had six assists. Kylie Heronimus had 10 rebounds and 10 assists for AHS. Jenna Honermann contributed six assists to the cause.

Box score
Heronimus 0 0 3-4 3, Honermann 2 0 2-2 6, Henning 1 1 3-4 8, Cox 2 0 0-0 4, Lonneman 9 0 8-10 26, Gengler 9 0 2-3 20.

Team statistics
Adrian: 24 of 57 field goals (44 percent), 18 of 23 free throws (78 percent), 42 rebounds, eight turnovers.
RRC: 17 of 60 field goals (28 percent), 11 of 14 free throws (79 percent), 26 rebounds, six turnovers.

Rust brothers dedicated to Air Force

Kenneth natives Justin (left) and Nathan Rust greet each other at Osan Air Base, South Korea, near the C-130 that JJ flew in on en route to Japan. JJ was able to "pull some strings" to arrange for a Dec. 11-12 visit with Nathan, whom he hadn’t seen for 2 1/2 years.

By Lori Ehde
U.S. Air Force members Justin and Nathan Rust reunited for a long overdue visit in December after not seeing each other for 2 1/2 years.

Sons of Kraig and Patricia Rust, Kenneth, the two brothers have a combined nine years in the Air Force.

Nathan enlisted 6 1/2 years ago and is now a senior airman with the 731st Air Mobility Squadron in Osan Air Base, South Korea.

He works as a passenger service representative there, handling 1,600 passengers per week.

Justin enlisted 2 1/2 years ago and now serves as an airman first class with the 517th Airlift Squadron.

He works on C-130 Communication Navigational Systems in Elmendorf, Alaska. He’ll soon be promoted to senior airman.

According to Nathan, his little brother had to pull some strings to coordinate his visit to Korea while on his way to a two-week deployment in Japan.

The two Rusts were able to spend 20 hours catching up Dec. 11-12.

"We hadn’t seen each other since JJ’s graduation," Nathan told the Star Herald Friday.

Nathan’s wife, Andrea, and their children, Tyler, 2, and Alexis, 4, live in Delaware.

The whole Rust family, including their older sister, Marie, who lives in Kentucky, will be home in Rock County in June for a wedding.

'Tax-free zones' would spur rural development

By Lori Ehde
In a time of projected state economic shortfalls, rural Minnesota needs to be especially vigilant in protecting its development interests.

Another tool may be available to outstate cities to attract business growth and to protect economic development already underway.

House Majority Leader Erik Paulsen and Rep. Doug Magnus recently circulated southwest Minnesota communities to talk about "Tax Free Zone" legislation.

Gov. Tim Pawlenty and House legislators are proposing the initiative to stimulate development and create jobs in economically distressed areas of greater Minnesota.

"Tax-free zones are the tools our border communities in southwestern Minnesota need to attract and retain job providers," Paulsen said.

"Tax-free zones will give our southwestern Minnesota communities the competitive edge they need when competing for new business and jobs."

Modeled after similar programs adopted in Michigan and Pennsylvania, the legislation would allow up to 10 tax-free zones with a maximum size of 5,000 acres (roughly 7.8 square miles) each to be established in greater Minnesota.

Two years after Pennsylvania designated 12 tax-free zones in February of 1999, the move was attributed to creating 5,700 jobs and retaining another 3,100.

Businesses operating within the zones would not pay property taxes or state income taxes.

"The state’s conventional development strategy can use a jump-start in southwestern Minnesota," Magnus said.

"To revitalize our part of the state, we need to be bold and think outside of the box. Tax-free zones have helped create thousands of new jobs in Michigan and Pennsylvania, and they can do the same for southwestern Minnesota."

It’s too early to tell what the legislation could specifically mean for Luverne, but Economic Development Authority Director Dan Statema said the discussion itself is encouraging.

"I can see there being some pretty stiff competition among regions for this tax-free designation," Statema said.

"But the most exciting thing about this is the governor and Legislature are recognizing the need for economic development incentives in greater Minnesota."

The initiative shouldn’t be confused with existing border city legislation, which allows tax breaks for qualifying new business construction.

Tax-free zones can apply to any economically distressed rural area, regardless of proximity to a border. It’s just that border communities are particularly vulnerable to losing business and labor resources to neighboring states.

"Every day another one of our kids leave southwestern Minnesota for a job in Sioux Falls or the Twin Cities," Magnus said.

"For years we’ve been looking for a tool that will allow more of our kids to find a job where they grew up. That tool could be tax-free zones."

Paulsen said tax-free zones for greater Minnesota will be a major initiative of Gov. Pawlenty and the state House in the 2003 legislative session, which began last week.

Magnus represents the newly redistricted House District 22A, which includes Rock, Pipestone, Murray and three-quarters of Nobles County.

Rock County used to be represented in the House by Richard Mulder, Ivanhoe, when it was part of the former District 21B. Mulder did not seek re-election last fall, and voters chose Republican Magnus over DFL incumbent Ted Winter for the job.

Ethanol subsidies on deck for cuts

By Lori Ehde
A bus load of Rock County farmers and ethanol investors left Luverne at 5:30 this morning to see lawmakers in St. Paul about proposed cuts to ethanol subsidies.

"We want to make our presence known that rural Minnesota is taking a disproportional hit in the budget cuts," said David Kolsrud, manager of CornerStone Cooperative.

CornerStone is the 200-plus member co-op that owns the majority of the Agri-Energy Ethanol Plant in Luverne.

"We borrowed money and made the investments all with the understanding that the money would be there. … There are those who have loans out there, and you don’t just pull the rug out on those deals," Kolsrud said.

"When a new administration decides to pull the funding, it’s reneging on a contract, as far as I’m concerned."

In what is by far the biggest line item in Gov. Tim Pawlenty’s proposed budget cuts, the plan would eliminate $26.8 million in payments to 13 plants.

This represents three-quarters of what the state was set to pay out in subsidies this year.

"If they get by with this — getting our farmers and investors to put money in the plant and then reneging on the deal — farmers aren’t going to be interested in doing other programs with the state," Kolsrud.

Current subsidies provide 20 cents per gallon of ethanol produced — up to $3 million to each plant, including Luverne’s, annually.

Producers and investors in Luverne’s Agri-Energy Ethanol plant say the proposed cuts are unfair to rural Minnesota and would set back the value-added and renewable energies movement.

"It would put a severe crimp in the value-added market," Kolsrud said.

He and local producers were prepared to share some of these thoughts with Minnesota Public Radio in a 5 a.m. interview scheduled before they left town today.

"There’s a lot of money that has circulated throughout the community by farmers who have added value to their grain prices," Kolsrud said.

"It’s just an unfortunate situation when years worth of work can be undone by a new governor."

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