Gov. Tim Pawlenty's proposed supplemental budget, if adopted, would be devastating to Minnesota. Budget reductions focus on Minnesota's most vulnerable citizens and would drag down local governments and increase local property taxpayers.
The Republican governor's budget proposal released Monday also provides an interesting challenge for Republican lawmakers. They can side with the "no-new-taxes" governor, let the cuts play out as election fodder for Democrats, and see utter defeat come November. Or they can try to shape a bill that balances cuts and restoring fairness to the state's income tax brackets and be ready to use the veto override to enact a bill. That way, they've got even ground to compete in November.
The third option, which would hurt Minnesotans even more, is to frame a bill, let Gov. Pawlenty veto it, and again let him unallot what he wills until the Legislature meets in 2011.
To fill a $1.2 billion state budget hole without raising taxes, the governor proposes to cut $250 million from state aid to cities, with $118.1 million this year on top of the $102.4 million he unallotted last summer. To Bemidji, it would mean a total loss of $1.66 million. It's $581,323 on top of cuts already budgeted by the city. No doubt the latest round will force police and firefighter layoffs, little or no street maintenance, closed days for the public library, or a combination of all.
The governor also proposes $347 million in cuts to health care programs that would affect another 40,000 Minnesotans. It just seems cruel, during the Great Recession when more people depend on public assistance to survive, that the door is slammed.
ADVERTISEMENT
He also proposes $181 million in state agency cuts. Now there is probably room there, but such severe cuts will mean laying off public workers and adding taxpaying jobs to the unemployment line.
The governor also proposes to help Big Business by suggesting a 20 percent cut in the corporate tax rate, a capital gains exclusion and four other tax breaks for business.
One could easily make the argument that the well-heeled are unaffected by the supplement budget, even aided, while the downtrodden and average city residents go without shoes.
No one likes higher taxes, but for how long can they be frozen? It's been 11 years since income tax rates have been adjusted -- then to reflect a budget surplus. Meanwhile, at the rate Minnesota is going, a once-innovative state will have a hard time matching Mississippi or Louisiana in quality of life indicators.
Republican lawmakers, especially in the House, hold the key to the budget battle. Which way they swing will move Minnesota toward prosperity or mediocrity.
