For more information contact: Ted Modrich 651-296-5809
As I write this column, the prospect of a state shutdown looms larger with each passing day. While I remain hopeful that a budget agreement can be reached before the June 30 deadline, Governor Dayton and the Republicans in charge of the legislature actually seem to have become more entrenched in recent days.
According to my friend, State Rep. Pat Garofalo (R-Farmington), some Republican legislators are now saying they are hoping for a shutdown. Not helpful.
As a Democrat in the minority, I am admittedly frustrated with all involved.
It would be easiest to just throw up my hands, like some of my DFL colleagues have done, and say, “Hey, I’m not in charge, it’s not my problem, don’t blame me." Easy? Yes. Right? Of course not.
While I may not be in control of the legislature, I intend to keep doing all I can to bring the two sides together to reach a solution and avert a shutdown. As recently as this past Wednesday, I sent still more budget-solving ideas to both sides. Previously, I sent several cost-saving ideas.
There is a theme underlying each of my recent proposals. All of the ideas I put forth try to answer the same question: Are there ways to make additional revenues available in the state budget, in order to avoid what the governor has termed “catastrophic cuts,” without raising taxes and without resorting to additional accounting shifts?
Here are some of the ideas I shared with both sides.
1) Secure an updated state budget forecast. While the state traditionally gets new budget forecasts in November and February, almost five months have passed since the last forecast was prepared. A more up-to-date forecast would presumably reflect stronger economic conditions that have occurred since the start of 2011, creating a reasonable expectation of additional state revenues available for the budget being negotiated.
2) Restructure the state’s long-term debt. Just as homeowners refinance their mortgages and municipalities restructure their debt to lower interest rates or better fit with available cash flow, the restructuring of the state’s long-term debt may present an opportunity to free up revenues for other needs.
3) Escheat unclaimed gift card revenues to the state. Depending upon the look-back period, several hundred million dollars are available. These funds belong to Minnesotans, not to the retailers currently holding the unclaimed funds.
4) Tweak Minnesota’s gambling laws to boost revenues. Simply allowing charitable gambling organizations to use electronic means to play already-lawful games will dramatically enhance revenues, not just to the state but to charities. Other gambling proposals exist as well.
Additional ideas, such as ending certain sales tax exemptions and creating a straightforward flat tax without all of the exemptions and deductions, were also raised.
As you can see, each of my recent proposals tries to find common ground between the governor and the Republicans in charge of the legislature. That doesn’t mean they’re perfect, just practical. The governor gets new revenues to avoid the most catastrophic cuts, while the Republicans in charge of the legislature can say they didn’t raise taxes.
By finding ways that allow both sides to stick to their principles and by avoiding the petty political finger-pointing that seems to be the hallmark of politics nowadays, I am confident we can soon reach a budget-solving solution. It’s time to come together.