Where is the deficit? We talk about 'You got to raise taxes, government has to invest.' I'll say it again, government in the state of Minnesota is scheduled to get a 7 percent increase in the next biennium. Government will have more money to spend in the next two years than it is spending right now.
You see, Minnesotans? There is no spoon. Whoa. The deficit is all in your head! If the budget crisis doesn't exist --bam-- no plan needed.
Even with his attempt to melt our minds by going all Neo on us, no one is fooled. Despite Emmer's selective accounting, we know we're facing a historic budget crisis, and as Tom Scheck immediately points out, the major reason for the uptick in state spending cited by Emmer is that Tim Pawlenty's kicking of the budgetary can is coming home to roost. (Mixed metaphors win elections)
With over a billion in school shifts and half a billion in temporary cuts coming off the chopping block, many of the gimmicks bullied through the legislature by Tim Pawlenty--with the full support of Tom Emmer and House Republicans-- are putting the state in an even worse situation next year.
Instead of owning up to his role in the budget debacle we find ourselves in -- and provide us with what would actually be a "new direction" -- Tom Emmer has decided to try and confuse us. Whether it's mashing up $20 billion and 20%, or comparing Minnesota to a wagon full of Clydesdales, Tom Emmer is willing to say anything, except what he would actually do to the services we all use and rely on if he became governor.
The problem? It's pretty hard to dance around the fact that he introduced things like cutting the minimum wage while pushing for lower taxes on corporations. We wont forget that --when he bothered to show up to vote-- that he consistently sided with big businesses instead of working Minnesotans. For the new direction the Minnesota needs someone ready to make the hard decisions to move us forward. We need someone who can lay out a plan to get Minnesota back on track, not more Pawlenty-styled governing by press release.
Last week, the Minnesota Supreme Court, on a 4-3 decision, ruled against Governor Pawlenty's choice to unilaterally cut the state budget. The Star Tribune's Lori Sturdevant explains:
The 2010-11 state budget was never balanced. A $3 billion deficit remains. Only when a budget is lawfully enacted and state spending is "allotted" for the biennium can a governor "unallot," Chief Justice Eric Magnuson's opinion said.
As the regular legislative session winds down, the question on Minnesotans' minds is what now? With Governor Pawlenty's unilateral budget cuts from last summer erased, now is the time for a balanced approach to balancing the state budget.
The legislature obviously agrees--the Minnesota House, on a decisive and bipartisan vote (105-27), decided not to ratify Pawlenty's cuts. Only the most conservative members of the House voted to ratify Pawlenty's cuts, which shows just how little support Pawlenty's approach had.
This morning, the House and Senate put forward a plan to balance the state budget. The plan ratifies most of the Governor's unallotments; however, most of them are temporary cuts, not permanent reductions. More importantly, the legislature's plan includes $435 million in new revenues to solve the budget crisis.
There still seems to be a feeling that the state's budget crisis could be solved before the legislature adjourns on May 17. Hopefully the legislature will recognize, after this past year's unallotment, the need to quickly pass a balanced budget.
I don’t envy congressional candidate Allen Quist. He has to take on Gov. Tim Pawlenty, who has a record three entries in our 2010 March Badness bracket. Before you get too worried about his chances, let me tell you that he could have a come-from-behind victory on his hands.
Quist said that beating “radical” liberals in Washington is an even bigger battle than fighting terrorism. “Terrorism? Yes. That’s not the big battle. The big battle is in D.C. with the radicals."
His opponent is Unallotment Pawlenty, who should be charged with a flagrant foul for his potentially unconstitutional use of unallotment power over the summer. His unallotment sucker punched local governments by cutting critical services.
Tim Pawlenty and the GOP legislators who backed up his cut to the Renter's Credit thought they were off the hook. They were hoping that the many months passing between their cuts and your lighter wallet might make you forget who was responsible.
But they were wrong. Already, hundreds of Minnesotans -- including you -- have stood up and called for the Renter's Credit to be fully restored.
With the start of the legislative session just around the corner, we have an important opportunity to reach out to our elected officials and make sure our voice is heard.
It's really easy to use our Renter's Credit Rebate Calculator to find out how much Pawlenty and friends took from you -- just enter your monthly rent and income. If you're not a renter, you can use it to find out how many dollars were taken from the pockets of folks who would've been spending that money and supporting local economies.
As our legislators prepare to head back to Saint Paul, they need to hear from all of us who will lose out on a much-needed boost to our budgets during these hard times. Your personal story is one of the best weapons we have in his fight and will help raise awareness in the legislature about the need to restore the Renter's Credit.
We're getting closer and closer to the next legislative session, and with Governor Pawlenty's reckless unallotments' coming under fire, there is real momentum building to get our full renters rebate back if we make our voices heard.
Because our hearts aren't "two sizes too small" like Tim Pawlenty and his cut to the renter's rebate program, we thought we would give all of you sorting through your inboxes after the holidays two more days to enter the contest.
Right now Peter S., Lydia H., Bao H., and Michael B. are in a dead heat for the most e-cards sent, but there's still time to play catch-up, but only if you hurry.
Remember: the more people you tell, the more chances you have to win the IKEA gift card.
When we set off on the Make Minnesota Thrive Drive over the summer, we learned about the things that makes our state above average. But we also learned how cities across Minnesota were coping with budget cuts and unallotments and reductions in lifeguard staff, firefighters, and police officers were among the solutions.
As winter sets in and the holidays begin, cities across Minnesota are relieved that they won't see their local government aid reduced in December; however, the city of Minneapolis will still make staff reductions. MPR reported today that the city is dealing with a multi-million dollar reduction to its police budget, which means it will lay off 25 police officers.
The majority of the soon-to-be unemployed officers are a group of 19 recruits who are graduating from the academy this week...The new officers will work for five days before the layoffs take effect.
Budget cuts and unallotment have meant that the department has to lessen the staff in order to cope with the multi-million dollar reduction in its budget. The department is hoping to receive a federal grant so that it can rehire at least some of the officers that were let go.
What does Minnesota’s anticipated $1.2 billion deficit and no hope for a special session mean for Minnesotans as the first real snow begins to fall? In the summer it meant fewer lifeguards on duty and cuts to parks and public works budgets. This winter you might notice that the streets are snowier on your way to and from work. Mayors across the state are holding their breath, waiting to see if Tim Pawlenty will cut even more local government aid this month. Politics in Minnesota reports that Mayors Chris Coleman and Wayne Wolden asked the Governor to call a special session to avoid such cuts:
“Minnesota cities are so close to the financial edge that any reduction in the December [local government aid] funding will spell disaster in the form of closed libraries, deeper cuts to police and fire protection and a sharp reduction in critical services, like winter snowplowing,” today’s joint statement from Coleman and Wadena Mayor Wayne Wolden, a spokesman for the coalition, said.
The Governor's office said no, and Minnesota's cities are getting worried. If Pawlenty plans to unallot more LGA this month, Rochester will have no choice but to take the money out of its reserve funds, according to the Post-Bulletin. The St. Cloud Times reports that Sartell would have to postpone road repairs and maintenance to cope with the loss of funds.
How will LGA reductions will impact snow removal this winter? According to Kare 11, Mankato is dealing with a ten percent cut in the snow removal budget because of state aid cuts. Anyone who has driven through Minnesota in the winter knows how dangerous the roads can get when it’s snowing heavily. This winter, we might have to be extra cautious and hope that there isn’t a drastic increase in accidents with more snow on the roads.
Our friends over at Growth & Justice write about a new report by Transportation for America which found that service cuts and fee increases disproportionately affect the poor and people living in rural areas. It makes sense when you think of the two types of riders who use public transportation systems -- those who ride by choice and those who are "transit-dependent."
Especially in urban areas, there are two types of transit riders — those who ride by choice and those who are transit-dependent. Bus service cuts and fare increases may drive the "choice" users back to their cars, but for the households without a vehicle their options shrink. In rural areas, where transit may be their only link to employment, medical care or other services, the impact of underfunding goes far beyond "transportation."
As someone who has been "transit-dependent" in the past, I can tell you that fare increases add up, especially when they're coupled with reductions in services and/or changes in the transfer policy. Many service reductions translate into even longer commutes for transit riders. For working parents, a transit service cut could mean the difference between getting home. in time to tuck the kids into bed and getting home long after they're asleep. More from Transit for Livable Communities:
"Transportation services are not a luxury for people living in rural areas – they are a necessity," says Jeanette Porter, Transit Director with Western Community Action. "When transit providers are forced to shift so much of the financial burden onto our passengers, or agencies helping their clients, it creates a devastating cycle that is already beginning to take effect. Services are meaningless if people can’t access them and when people can’t afford to get to social events, medical appointments or jobs, their quality of life is compromised. Often people must move to a larger area where more options are available. This not only affects those who depend on public transportation, but the economic and social vitality of their communities, as well."
In 2009, the Minneapolis/St. Paul area faced the 5th highest fare increase in the country, with bus fares going up 25 cents over the past 10 months. Governor Pawlenty also unalloted over $1.7 million from Metro Transit’s budget on Friday. Although this won’t immediately result in service cuts or fare increases, it further demonstrates the lack of a long-term funding plan to maintain, let alone grow, the bus system.
“There is absolutely no excuse to cut transit service or raise fares,” said Sarah Mullins, a member of ISAIAH. “The success of our region depends on a transit system that works for all of its residents, ensuring that all can access opportunity and participate fully in our communities. Our state agencies have developed a long-term transit plan, and it is our collective responsibility to ensure that we dedicate the long-term operating funds needed to make it happen.”
Via Thank LGA and Minnesota 2020 we come across an editorial in the Mankato Free Press about Tim Pawlenty and his allies' cuts to local government aid, and how they endanger communities in greater Minnesota. From the editorial:
Reinstatement of state aid doesn’t seem likely anytime soon, so small communities will be forced to raise taxes or cut services to levels that may be OK to some, but that may also deter growth, both residential and commercial...
That would create an entirely different outstate Minnesota, an entirely different small-town Minnesota. There is likely to develop, under this scenario, a mishmash of fees and costs uneven across cities in Minnesota. It will create a tax and fee structure that will be less understandable, and less accountable for businesses and residents.
On our Make Minnesota Thrive Drive, we talked with Wayne Wolden, the mayor of Wadena, and he echoed the words in the editorial. The cuts to LGA are pushing city budgets to the brink, and communities like Wadena are left with little choice than to levy regressive fees. Instead of making the tough choices, and showing the leadership that our state needs right now, Tim Pawlenty--with the help of those who sustained his veto of a balanced budget--shifted the choices to communties like Wadena that do not have all of the tools needed to make these decisions in a fair way.
The small towns throughout the state, like Wadena, are a big reason why our state has thrived through previous recessions. If the reckless budget decisions of the past several years continue we may be seeing a shift away from all cities having the basic services that we all use and love, to only those with people wealthy enough to pay higher property taxes and fees being able to afford them.
Update from the Road:The city of Rochester is really impressive, particularly in the downtown area. From the civic center, to the library, the public investments in this city really make the downtown area striking. But what made all of this possible was an innovative and thriving medical community around which other sectors have organized. The world-leading facilities down here attract people from all over (we'll save health care access and other issues for another post) the world seeking help. These unallotments really begin to chip away at that status. They take a successful and thriving model and begin to build in more uncompensated care and erode the base of not only the hospital system, but the community at large, through which these sorts of investments in these impressive facilities is possible.
According to the Minnesota Hospital Association, the medical facilities I mention will all lose significant funding from Governor Pawlenty’s elimination of General Assistance Medical Care (GAMC).
St. Mary’s Hospital will lose $15,012,274
Rochester Methodist Hospital will lose $4,400,642
Olmsted Medical Center will lose $917,403
Mayo Psychiatry and Psychology will lose $1,355,711
All together, those hospitals will lose over $21 million courtesy of Governor Pawlenty’s cuts. People do not stop needing care because we are in a recession, and denying poor childless adults GAMC simply means those people will end up sicker and in the emergency room. Help us make sure Minnesota doesn’t just survive these tough economic times, but thrives, by sharing how you or your community are affected by reckless budget cuts.
The result of Governor Pawlenty’s budget cuts at Minnesota State University in Mankato? New professors are only being offered one-year contracts, administrators have “interim” before their title, and class sizes are increasing, according to the Mankato Free Press. The university has already cut $8 million from its budget, and Governor Pawlenty has imposed an addition $100 million cut for state colleges and universities for 2010.
Funding cuts at MSU have forced reductions in the number of clinicals offered at the School of Nursing, meaning fewer students are being accepted. In this economic climate, more students are heading to school, increasing class sizes at universities even as faculty and staff are reduced to lower budgets. The astounding impact of this can be seen at MSU:
Faculty reductions have forced class sizes up to the point that there aren’t lecture halls large enough to handle some sociology courses, forcing MSU to hold classes in the movie theater across the street from campus, said Don Larsson, head of the MSU faculty union.
Can you even imagine taking a class in a movie theater? It seems that the days of advertising small class sizes and student-to-professor ratios are over and speaks to the fact that budget cuts have forced universities like MSU to cut faculty to a bare minimum.
Governor Pawlenty also vetoed for the second time the state’s share of a proposed $13 million women’s hockey center at MSU. According to the Mankato Free Press, this facility would be where the women’s hockey team played their games, and would also serve as a facility for the men’s hockey team to practice. The construction of a new center for Minnesota’s favorite winter pastime would also have created jobs in a downtrodden economy.
Hockey and high quality education are two things that make the state of Minnesota so great—and they are both in jeopardy in Mankato. For more on how education is affecting statewide by budget cuts and more from the Thrive Drive, head over to our website.
At a speach at the Humphrey Institute at the University of Minnesota-Twin Cities, I once heard a Harvard professor talk about how it was great that Harvard had a big endowment even in the tough economic times, but for the nation to continue to lead the world in innovation, the larger university system had to be well funded as well. This is true for the nation, as well as for the state. It's nice that we have a large University of Minnesota system that has locations in more of the larger cities in the state, but if we continue to cut funding to the state university system, the economic engine in many of these communties is going to take a hit.
The St. Cloud Area Economic Development Partnership, Inc., a public-private membership organization knows the importance of institutions like SCSU, especially with the solid business programs at the school. From the partnership's site:
Business-related programs at St. Cloud State University abound. The University is home to the nationally accredited G.R. Herberger College of Business, which offers a wide range of undergraduate and graduate programs in disciplines such as accounting, finance, marketing, and general business administration. In addition, the College of Business also directs the Harold Anderson Entrepreneurial Center, which reaches out to those involved in start-up enterprises, owners of developing businesses, or those who have been in business for awhile but need specialized help. Beyond business, SCSU provides more than 70 major fields of study, from computer science and engineering programs to social/physical sciences and humanities and education programs. SCSU offers traditional day programs as well as evening and customized options.
Despite the important role the school plays in the community St. Cloud State, like MSU-Moorhead, is a part of the $50 million dollar unallotment that Tim Pawlenty handed down to these schools that make up an essential economic and educational network throughout the state. St. Cloud State expects to be about $2 million short for their 2011 budget, and with the mess Tim Pawlenty is leaving behind, the budgets of schools like St. Cloud could face even bigger problems. These are the things that make our state grow, and they're being put in jeopardy. We'll have some stories later on how these cuts are impacting some students to go along with this big picture budget take.
The Make Minnesota Thrive Drive made a stop in East Grand Forks today, where the City Council decided against hiring a new police officer and firefighter last week. Although the city plans to cut more than $400,000 from next year’s budget because of state aid reductions, City Council President Dick Grassel warns that more cuts could be on the way, according to the Grand Forks Herald.
“We are going to wait until we get into the budget process,” he said. “We don’t know if we have to cut some more. Some feel strongly we should hire a police officer and a fireman, but we have to really take a look at everything.”
Because of state aid cuts by Governor Pawlenty and his allies in the Legislature, many cities in Minnesota are facing similar reductions; however, putting off hiring police officers and firemen could mean fewer business hours and longer wait times for police or firemen to arrive because there are fewer employees. Careless budget cuts and unallotment have meant that some cities, like East Grand Forks, must consider cutting down public safety services to reduce their budgets.
After surviving the last unallotment and bracing for the next, cities truly are in survival mode—scrutinizing every aspect of their budget for the next two years to see what is not absolutely necessary. This isn’t the Minnesota we know and love, and stories like these should be motivation to make sure Minnesota is once again a state that thrives. That’s what the Thrive Drive is all about—learning what things make our state so great but are being jeopardized by reckless budget cuts by the Governor and his friends in the Legislature.
Wadena Mayor Wayne Wolden sums up the conflict between Xcel Energy and the city of Red Wing nicely: "How can Minnesota ask a city to host a nuclear power plant and then cut the critical aid that helps protect that city in the event of a nuclear incident?"
The Prairie Island nuclear power plant is located in the city of Red Wing, one of two nuclear power plants in the state. Xcel energy has claimed that the money it pays Red Wing in property taxes and reimbursements exceeds the city's cost of providing emergency services. This is where city officials in Red Wing, already hit hard by Governor Pawlenty’s budget cuts, disagree.
Red Wing will see a reduction in state aid of almost $900,000 next year, making the city question its ability to provide the emergency services required by having a nuclear power plant. The combined effects of state aid cuts and Xcel’s reduced property tax payments have left the city with 15 percent less revenue since 2002. Marshall Hallock, Red Wing’s finance director, told the Star Tribune that the drop in Xcel’s property tax payments would result in $2.3 million less for the city next year.
By next year, he added, state aid payments to the city will have dropped by $1.07 million annually since 2006.
The combination of state aid cuts and Xcels reduced property tax payments means the city cannot ensure it has the capacity to remain the first responder to plant incidents. Although Xcel has its own fire brigade, Red Wing’s emergency management director Roger Hand believes it’s nothing more than a stop-gap measure. According to the Star Tribune,
While Xcel Energy has its own Prairie Island fire brigade, the city is responsible for helping control incidents and responding to anything that extends beyond the plant's physical boundaries -- a role that could include evacuation, decontaminating emergency workers and sealing off roadways.
This brings us back to Mayor Wolden and the question of how the state can ask Red Wing to host a nuclear power plant without giving it the resources and funding to be able to respond properly in the event of an incident. Without the funding to protect its citizens from potential disasters, Red Wing cannot adequately provide public safety, a crucial service. On the Defend MN website, you can track all the cuts cities across the state have to make thanks to unallotment, including to the provision of public safety services. If you have a story to share with us about how the budget cuts affect you, use this form to tell us.
The George Washington University-based Campaign Finance Institute released a statement today calling Governor Tim Pawlenty's decision to eliminate the Political Contribution Rebate an elimination of "an important force for democracy in Minnesota government."
Based on its research over the last five years, the Campaign Finance Institute has found that the PCR rebate is an important part of the "unusually large role" that small donors play in Minnesota's state elections. In Minnesota, small donors (those who gave $100 or less to any one candidate) accounted for 45% of the private contributions to candidates for state office, while in most other states they accounted for less than 10%.
"Eliminating the rebate would remove an important force for democracy in Minnesota government," said CFI's Executive Director Michael Malbin, who is also a professor of political science at the University at Albany (SUNY). "The refund promotes greater equality by building up from the bottom. It deserves significant credit for the role of small donors in Minnesota. The PCR deserves to be imitated, not destroyed."
Because small donors play a larger role in state elections, candidates are more likely to look to average citizens, not wealthy donors, for campaign funds, making them more accountable to the people.
Common Cause, a government watchdog group, has called Governor Pawlenty's elimination of the refund a "seeming abandonment of Minnesota's long held principles of good government." They're hosting a free speech and panel discussion titled "Is The Era of Good Government in Minnesota Over?" with Common Cause President Bob Edgar next Monday, July 13th. Click here for more information or to RSVP.
I don’t envy congressional candidate Allen Quist. He has to take on Gov. Tim Pawlenty, who has a record three entries in our 2010 March Badness bracket. Before you get too worried about his chances, let me tell you that he could have a come-from-behind victory on his hands.
What does Minnesota’s anticipated $1.2 billion deficit and no hope for a special session mean for Minnesotans as the first real snow begins to fall? In the summer it meant fewer lifeguards on duty and cuts to parks and public works budgets. This winter you might notice that the streets are snowier on your way to and from work. Mayors across the state are holding their breath, waiting to see if Tim Pawlenty will cut even more local government aid this month. 
Wadena Mayor Wayne Wolden sums up the conflict between Xcel Energy and the city of Red Wing nicely: "How can Minnesota ask a city to host a nuclear power plant and then cut the critical aid that helps protect that city in the event of a nuclear incident?"
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