 As Republicans refused DFL Governor Mark Dayton's offer to raise income taxes only on those earning more than $1 million a year, 0.3 percent of all MN taxpayers, in the final hours before a midnight deadline June 30, Minnesota began a historic government shutdown. "This is a night of deep sorrow for me," Dayton remarked in an address that was punctuated by jeers and hisses from Republicans, including some lawmakers.
Read the remark's Governor Dayton made on the MN government shutdown. View the video of his speech.
A Star Tribune editorial suggests that legislators "resolve to avoid one-time fixes to deal with what is clearly a structural shortage of state revenues, not runaway state spending." The editorial points out that Republican legislators proposed temporary patches that would push today's problems into future years. They offered to add $1 billion to their $34 billion budget, but about $800 million of that $1 billion came in the form of another big delay in school aid payments and borrowing against future state tobacco lawsuit settlement revenues. See "Dysfunction is on display in shutdown."
Bob Hume points out that Republican legislators want to cut everything they claim they don't want to lose in a shutdown. What they don't tell us is that if their budget becomes law, these cuts will become permanent. See Hume's comparison of GOP rhetoric on the effects of the shutdown with the effects of their permnent cuts: "Beyond Shutdown Rhetoric are the GOP's Painful, Permanent Cuts to Minnesotans."
Watch Cenk Uygur interview DFL Chair Ken Martin on the shutdown and on Governor Pawlenty's role in creating MN's huge budget shortfall on MSNBC. The state's $5 billion budget gap is the result of decisions made during Pawlenty's administration. About $2 billion in one-time federal stimulus dollars and a $1.9 billion delay in school payments allowed the state to support more programming in the last biennium than it had in cash. At a press conference at the airport, Martin stated, "The last thing Minnesotans and the last thing Americans need at this point is fiscal policy and budget advice from Tim Pawlenty."
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“Each of us started our budget proposals by making a choice. I chose a balanced approach to our budget; one that included both significant cuts, but asked the top two percent of Minnesotans to pay more to ensure our quality of life and the services millions of Minnesotans depend on. . .
“Compromise is never easy, because each person must give up something that is important. . . I am returning this and the other budget bills to you with the hope that you will choose to work with me, to find a fair, responsible, and balanced solution.” Press Release from Governor Dayton's Office
See the Uptake's 5 minute Video from Governor Dayton's statement on his compromise budget.
Following Governor Dayton's compromise offer, the St. Cloud Times editorial Board wrote, "Republicans in the Minnesota House and Senate are about to make a choice — govern in the best interests of most residents or for the richest 2 percent of the state. . . Dayton, whom this board did not endorse for governor, offered a stellar solution Monday when he asked Republicans to meet halfway in resolving the state’s $5.1 billion budget shortfall." See the full editorial.
Lori Sturdevant reminds Republicans that Mark Dayton likely learned more before the age of 12 about how to succeed in business from his father Bruce Dayton than most people ever learn. She points out that Dayton's views follow in the tradition of Republican Governor Elmer Andersen who believed that taxes spent wisely to support the state's shared human and physical capital were good for business.
"Andersen's ideas run longer and deeper in Minnesota, back to the New Englanders who arrived at the Falls of St. Anthony in the 1850s and the Scandinavians who followed them, through the mid-20th century Republican Party and forward to Dayton and today's DFL Party.
They help explain why Dayton is trying to avert GOP-backed spending cuts for higher education, health care, transit and the rest. In his view, those things are essential ingredients for prosperity," Lori Sturdevant, "At the Capitol, a Historic Competition of Values."
Try balancing Minnesota's budget yourself. Your task is to close a gap of $5 billion for the years 2012 and 2013. MinnPost set up the options. You make the decisions, and the remaining deficit is calculated after each decision you make. You can get the job done in 10 minutes! Click here to get started.
Republicans have passed budget bills with the goal of protecting the richest 2% of Minnesotans and large corporations against an increase in their taxes. Their cuts only budget will have a dramatic impact on seniors, health care for low income Minnesotans, the education of our young people, and the future of our state's economy. The FrameShop summarizes at whose expense keeping wealthy Minnesotans' taxes at a lower rate than other Minnesotans pay will come:
Middle-class Minnesotans: GOP budget increases property taxes by $1 billion over four years, and will drive up tuition costs for families, making it more difficult for Minnesotans who are still struggling.
Seniors: Seniors are hit by higher property taxes, cuts to transit, and over $50 million in health care.
Kids: GOP cuts funding to our children’s schools by $50 million, including deep cuts to special ed and elimination of early childhood education, which experts advise is essential for closing the achievement gap.
The sick, disabled, and vulnerable: GOP budget takes away health care from 150,000 Minnesotans and makes devastating cuts totaling more than $260 million to the disabled.
Colleges and Universities: The GOP budget makes the biggest cuts to colleges and universities in our state’s history. It slashes $411 million from higher education, a 14% cut, after many years of cuts.
Jobs and the Economy: The GOP budget is bad for our economy: it eliminates nearly 30,000 jobs (mostly from the private sector) and guts higher education and workforce training.
For further details, see the FrameShop's Hot Stuff for May 18.
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GOVERNOR DAYTON IS RIGHT
THE RICH SHOULD PAY THEIR FAIR SHARE
Wealthy pay less than average in MN Taxes.
Minnesota's most affluent residents pay a smaller share of their incomes in state and local taxes than the average MN family according to the Minnesota Department of Revenue's 2011 MN Tax Incidence Study. Minnesota's taxes have become more regressive because the state has shifted towards using local property taxes for public services instead of state income taxes.
The average household paid 11.5% of their incomes in state and local taxes. Comparable figures were 10.3% for households in the top 10%, people with incomes of $129,567 and up, and only 9.7% for the wealthiest 1% of households with incomes more than $429,000. Governor Dayton and most Democratic legislators are in favor of raising the income tax of the highest income households so they will pay their fair share of MN taxes to help with reducing MN's Budget deficit.
Last Updated on Monday, 29 August 2011 13:07
“Each of us started our budget proposals by making a choice. I chose a balanced approach to our budget; one that included both significant cuts, but asked the top two percent of Minnesotans to pay more to ensure our quality of life and the services millions of Minnesotans depend on. . .
“Compromise is never easy, because each person must give up something that is important. . . I am returning this and the other budget bills to you with the hope that you will choose to work with me, to find a fair, responsible, and balanced solution.” Press Release from Governor Dayton's Office
See the Uptake's 5 minute Video from Governor Dayton's statement on his compromise budget.
Following Governor Dayton's compromise offer, the St. Cloud Times editorial Board wrote, "Republicans in the Minnesota House and Senate are about to make a choice — govern in the best interests of most residents or for the richest 2 percent of the state. . . Dayton, whom this board did not endorse for governor, offered a stellar solution Monday when he asked Republicans to meet halfway in resolving the state’s $5.1 billion budget shortfall. See the full editorial.
Lori Sturdevant reminds Republicans that Mark Dayton likely learned more before the age of 12 about how to succeed in business from his father Bruce Dayton than most people ever learn. She points out that Dayton's views follow in the tradition of Republican Governor Elmer Andersen who believed that taxes spent wisely to support the state's shared human and physical capital were good for business.
"Andersen's ideas run longer and deeper in Minnesota, back to the New Englanders who arrived at the Falls of St. Anthony in the 1850s and the Scandinavians who followed them, through the mid-20th century Republican Party and forward to Dayton and today's DFL Party.
They help explain why Dayton is trying to avert GOP-backed spending cuts for higher education, health care, transit and the rest. In his view, those things are essential ingredients for prosperity," Lori Sturdevant, "At the Capitol, a Historic Competition of Values."
Last Updated on Monday, 29 August 2011 12:17
For the first time, the State of Minnesota will have a competitive bidding process for providers of state health care that will focus on outcomes instead of procedures. Governor Mark Dayton also today signed an Executive Order requiring regular audits of health plans, and demanding full public disclosure of the profits, reserves, and administrative expenses of state contracted health care providers. These changes represent a fundamental shift in how the state provides and pays for health care in order to better serve taxpayers.
Under the Pawlenty Administration, state managed care contracts have gone largely unchecked, basing health plan payments on previous year’s costs. Managed health care currently costs the state more than $3 billion annually to cover more than 500,000 Minnesotans. Over the past ten years, these costs have increased dramatically from five percent to eleven percent of the state budget. The Dayton plan to introduce competitive bidding into the process will finally rein in costs on one of the state’s biggest and fastest-growing expenditures.
Read the Dayton Administration's Press Release on Health Care.
Last Updated on Monday, 29 August 2011 12:20
Governor Dayton's State of the State Address
 Governor Dayton's State of the State address emphasized investing in education, jobs, and infrastructure; protecting Minnesota's most vulnerable citizens; and improving government quality and efficiency while reducing its cost.
He stated his father's favorite quote from the Bible: “To whomsoever much has been given, of him shall much be required.” He asked of Minnesota's most successful citizens, "to please help your state, your children and grandchildren, your friends and neighbors, to regain what you and I have enjoyed so much and benefitted from so greatly during our lives here in Minnesota."
Listen to Governor Dayton's State of the State Address or read the transcript
Governor Dayton fulfilled his promise to make his first official act as Governor the signing of a provision in the Affordable Health Care Act that allows Minnesota to use Medicaid to cover adults without dependent children who earn up to 75 percent of federal poverty guidelines. Christina Wessel, the MN Council of Nonprofits' Budget Project Deputy Director, explains the many benefits Minnesotans will gain as a result of Governor Dayton signing the provision opting into Medicaid for low income adults in "Medicaid for Minnesotans could mean a Happy New Year." 1) Close to 100,000 very low-income Minnesotans will gain access to a full set of benefits, won’t face enrollment limits and will be able to get their care closer to home. 2) Health care providers will get higher reimbursement levels than under the limited GAMC program, and those reimbursements won’t be capped. 3) Minnesota will gain more than $1 billion for health care costs during the next biennium.
Dayton invited "tea party" protestors to be present at the signing and allowed them to speak. He commented, "This is an office where all points of view are honored and respected." Read more details of the signing in "They came to protest, but Dayton gives them the floor."
Governor Dayton released his jobs bill this week, rolling out a bonding bill that creates jobs now, jobs for the future, and economic growth for communities and businesses across our state. Governor Dayton proposed $531 million in investments in over 300 critical infrastructure projects. And, in an unusual, if not unprecedented approach, the Governor invited the Legislature to fill the other half of the bill ($470 million) with projects it deems most important.
The projects funded are estimated to create up to 28,000 jobs - starting right away and getting Minnesotans back to work rebuilding Minnesota. The Governor's bill includes 300 projects in communities in every corner of our state. A list of projects covered by the Governor's plan is available here.
Watch the governor talk about his proposal at Monday's press conference (12 minute presentation and 18 minute Q and A).
Dane Smith covers the business community's enthusiastic reaction to Governor Dayton's bonding bill, and emphasizes the good that the projects would do for Minnesota in the long term. Read Smith's article on the projects contained in the bill and their contribution to local economies throughout the state.
School district leaders and policy makers gave Mark Dayton high marks for his seven-point education plan [PDF]. In particular, educators praised the emphasis the governor placed on early-childhood education and kindergarten readiness as a means to closing the achievement gap. Dayton aims to create a comprehensive pre-K-12 system in the state.
He will place Education Commissioner Brenda Cassellius in charge of early-childhood initiatives, revive the Statewide Early Childhood Advisory Council, and re-establish the Children’s Cabinet.
Last Updated on Monday, 29 August 2011 13:39
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School district leaders and policy makers gave Mark Dayton high marks for his seven-point education plan [PDF]. In particular, educators praised the emphasis the governor placed on early-childhood education and kindergarten readiness as a means to closing the achievement gap. Dayton aims to create a comprehensive pre-K-12 system in the state.
He will place Education Commissioner Brenda Cassellius in charge of early-childhood initiatives, revive the Statewide Early Childhood Advisory Council, and re-establish the Children’s Cabinet.
Last Updated on Monday, 29 August 2011 12:22
Governor Dayton released his jobs bill this week, rolling out a bonding bill that creates jobs now, jobs for the future, and economic growth for communities and businesses across our state. Governor Dayton proposed $531 million in investments in over 300 critical infrastructure projects. And, in an unusual, if not unprecedented approach, the Governor invited the Legislature to fill the other half of the bill ($470 million) with projects it deems most important.
The projects funded are estimated to create up to 28,000 jobs - starting right away and getting Minnesotans back to work rebuilding Minnesota.
The Governor's bill, as introduced today, includes 300 projects in communities in every corner of our state. Read more about how the Governor's plan will help your community, here.
Watch the governor talk about his proposal at Monday's press conference (12 minute presentation and 18 minute Q and A).
Last Updated on Monday, 29 August 2011 12:23
Governor Dayton fulfilled his promise to make his first official act as Governor the signing of a provision in the Affordable Health Care Act that allows Minnesota to use Medicaid to cover adults without dependent children who earn up to 75 percent of federal poverty guidelines. Christina Wessel, the MN Council of Nonprofits' Budget Project Deputy Director, explains the many benefits Minnesotans will gain as a result of Governor Dayton signing the provision opting into Medicaid for low income adultss in "Medicaid for Minnesotans could mean a Happy New Year." 1) Close to 100,000 very low-income Minnesotans will gain access to a full set of benefits, won’t face enrollment limits and will be able to get their care closer to home. 2) Health care providers will get higher reimbursement levels than under the limited GAMC program, and those reimbursements won’t be capped. 3) Minnesota will gain more than $1 billion for health care costs during the next biennium.
Dayton invited "tea party" protestors to be present at the signing and allowed them to speak. He commented, "This is an office where all points of view are honored and respected." Read more details of the signing in "They came to protest, but Dayton gives them the floor."
Last Updated on Monday, 29 August 2011 12:25
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Governor Dayton opened his State of the State address by comparing it to life. "In a State of the State Address, as in life, it’s important to assess where we are, remember how we got here, decide where we want to go, and then determine how best to get there.' 
