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State Representative Michael Paymar

563 State Office BuildingState Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-4199

For more information contact: Melissa Parker 651-296-8873

Posted: 2005-01-31 00:00:00
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Column/LTE

GOVERNOR'S BUDGET PLAN WOULD PUT THE SQUEEZE ON FAMILY BUDGETS

State Rep. Michael Paymar
News Column

Minnesota House of Representatives Contact: Melissa Parker
District 64B (651) 296-4199 (651) 296-8873
253 State Office Building, St. Paul, MN 55155 melissa.parker@house.mn

January 31, 2005

GOVERNOR'S BUDGET PLAN WOULD PUT THE SQUEEZE ON FAMILY BUDGETS

As January came to a close, Governor Pawlenty released his budget plan to the legislature and the public. His challenge, and the challenge facing all state leaders, is to adequately fund state government and set priorities for the state. Of course the budget must also be balanced, and this is no small task, especially considering the current $1.4 billion budget shortfall. While tough economic times certainly require tough decision-making, I am disappointed that the Governor's plan places the burden squarely on the budgets of Minnesota families.
We are falling tragically behind in state support for our students and our schools. In 2003, the legislature passed an unprecedented $185 million cut to our K-12 schools. Our St. Paul school district is facing a $24 million shortfall; $20 million of which is a direct result of the loss of state funding. While the Governor's budget includes a modest increase for education funding this year, it falls short of reinstating that cut. At the same time, most of the increase for education funding in the Governor's proposed budget falls on the local property taxpayers. According to his own Department of Education, the Governor's plan for education would mean that our citizens would likely see the portion of the property taxes that they pay to support local schools increase over twenty percent in 2006.
Our students and their families are facing another year of tuition hikes. The University of Minnesota is projecting a 6% increase in tuition if the Governor's plan is adopted; our state colleges and universities system is projecting a 10% increase. This is following on the heels of multiple budgets that fall short on its commitment to our institutions of higher learning. Tuition at the U of M has increased 80% over the last five years.
Under the Governor's budget plan an additional 41,000 Minnesotans are at risk of losing their health care, and Minnesota families will pay the price. The Governor has pointed to 'welfare health care' as a major contributor to the state's financial woes. In response, he has proposed eliminating Minnesota Care eligibility for adults without children and reduced the eligibility for parents with children. Largely, these are not 'welfare' families; they are people working in lower-paying jobs --without employers that provide health care coverage – struggling to make ends meet. They pay a monthly premium for their Minnesota Care coverage. Unfortunately, these Minnesotans forced to go without preventative healthcare will continue to become ill. When they do, they will end up in our emergency rooms and clinics unable to pay. This cost ends up burdening all Minnesota families in the form of increased health insurance premiums and increased property taxes.
It would be far more helpful if the Governor and the Legislature had an honest dialogue—starting with a discussion about how we find ourselves moving from budget surpluses to a cycle of deficits. The deficits and cuts to services are in part the result of the across-the-board income tax cuts made in 1999 and 2001, coupled with the failure of the Legislature to fully fund K-12 Education, a promise made in 2001 as part of the property tax reform initiative. I voted for those bills because, at that time, we had huge surpluses and it was the right thing to do. I never thought that if the economic situation changed that we would follow the Governor’s lead to simply shift the burden to cities, counties, and school districts under a pretense that he isn’t raising taxes. Nor did I think the Governor and Legislature would balance the budget on the backs of the poor and make extreme cuts to the essential government infrastructure that has helped to make us strong and prosperous state.
In addition to the property increases likely if the Pawlenty budget is adopted, the Governor and Legislature have also begun phasing out Limited Market Value (LMV). Limited Market Value has been essential to keeping a lid on property tax increases, which otherwise would increase at a rate mirroring that of the increase in property values. Senator Richard Cohen and I have again introduced legislation to halt the phase out. Without that halt, neighborhoods like Highland Park and Macalester-Groveland will see significant property tax increases, which would be devastating to senior citizens and others living on fixed incomes.
Luckily, the Governor's proposal is just that—a proposal. In the following weeks, the House and the Senate will each work to construct budget plans that reflect their priorities for the state. My colleagues on both sides of the aisle will be working to analyze initiatives within the Governor's budget. I am hopeful that the end result will be to come up with a bipartisan solution to address the budget and the shortfall in a way that reflects our core values.
Minnesotans value education; we value the health and welfare of our families and our neighbors; we value honesty; we value our quality of life and want our children and grandchildren to have the same opportunities that previous generations enjoyed. My hope is that when the Legislature adjourns we will have found a more balanced approach to dealing with the deficit and the cuts that were made in the last biennium. The State of Minnesota has been moving in the wrong direction, and we have an opportunity to get back on track if we work together and find areas where we can compromise.
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