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ST. PAUL — Today the House of Representatives passed the Republican State Government Finance Omnibus Bill on a party line vote. The bill contains a 15 percent Executive Branch workforce reduction, $170 million in unsubstantiated savings, and circumvents the collective bargaining process, among other controversial provisions.
State Representative Phyllis Kahn (DFL – Minneapolis), the DFL lead member on the House State Government Finance Committee says that this is another example of the Republican aversion to job growth.
“This is another example of the Republican ‘pink slip agenda,’" Rep. Kahn said. “After pushing for thousands of job cuts in their other bills, this bill seeks to eliminate another 5,000 middle-class, good-paying jobs. They campaigned on job creation, but their governing philosophy has been anything but.”
According to the Census Bureau, Minnesota already has the 10th leanest state workforce in the nation, and spends only 8 percent of General Fund dollars on employee compensation. Minnesota’s state employees have frequently been nationally recognized for their high-quality work.
“Minnesota has one of the most efficient state workforces in the country,” Rep. Kahn said. “These cuts will result in reduced state services and a less responsive government for Minnesotans. Reckless cuts won’t reform government.”
In addition, a recent study from the Economic Policy Institute stated that for every 100 public sector jobs cut, 30 private sector jobs are lost.
“Apparently Republicans aren’t content with cutting middle-class jobs in the public sector; they’re going after private sector jobs as well,” Rep. Kahn said. “This bill alone will result in the loss of 1,500 good-paying private sector jobs as well.”
The bill also unnecessarily circumvents the collective bargaining process, allows outsourcing of state services without limits, and requires any contracts to include a 2 year pay freeze.
“After cutting 5,000 middle-class jobs, Republicans have decided to then go after the workers who are left,” Rep. Kahn said. “These provisions bring Wisconsin-style attacks on the middle class to Minnesota. We should have a higher standard. If we’re going to innovate and have genuine reform, we need to involve public employees and give them a voice, not shut them out of the process.”
The bill also books nearly $170 million in revenue that is not supported by non-partisan fiscal analysis from state government agencies. In one single instance, the bill claims $133 million in savings, while the fiscal note came back with $0 in savings. Additionally, the bill contains several provisions with costs that are not accounted for. Finally, if the proposed savings aren’t realized, the bill requires the Commissioner of Management and Budget to balance the state government’s finances.
“Republicans haven’t done their job,” Rep. Kahn added. “This bill has been put together with phony money and phony claims of savings. Then, when their supposed savings don’t materialize, Republicans pass the buck to somebody else. We were sent here to do our jobs, and make the tough decisions, not run away when things get difficult.”