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ST. PAUL, MN – It was a busy day at the State Capitol this Monday with the House passing a jobs-focused Capital Investment bill and the Governor Pawlenty unveiling his budget plan to close a $1.2 billion through deep and damaging cuts. State Rep. Tom Anzelc, DFL – Balsam Township, said the days events shed light on the differing priorities shared by the Governor and Legislature when it comes to jobs and the economy.
“By the Governor’s own admission, Minnesotans will lose jobs as a result of the cuts in his budget," said Anzelc. “With a quarter million Minnesotans out of work now, that’s not the direction we should be going.”
In order to create jobs and grow the economy, Anzelc joined a large majority in the Minnesota House, voting – to – to pass a jobs-focused Capital Investment bill to invest in public works projects across the state. Projects of local significance include:
• $285,000 for a joint Koochiching and St. Louis County project to pre-design a wastewater treatment facility at Voyageurs National Park, Kabetogama and other border waters.
• Modifies language to allow Koochiching County to move forward with a project to design a plasma torch gasification facility that coverts solid waste into energy.
• Modifies language to assure state grant funds can be used to move forward the Essar steel mill project in Nashwauk.
The House bonding bill comes in at just over $1 billion and reflects three key priorities aimed at spurring economic growth and development across the state: higher education investments, transportation and transit improvements, and clean water infrastructure. Coming in well under the administration’s new debt service guidelines, the bill is regionally balanced and is designed to take full advantage of federal and other non-state matches. Conservative estimates indicate the bonding bill will create 10,000 jobs, many of which that could begin in a matter of months.
“This bill will create good paying jobs in a matter of months at a time when nothing is more important for our region,” said Anzelc. “I am hopeful we can move forward quickly and get people back to work. As I’ve said many times, we can’t tax or cut our way out of our economic dilemma. We need to grow jobs.”
As the House worked on their jobs bill, the Governor was laying out a budget proposal that relied on deep cuts to close a $1.2 billion shortfall. Details of the Governor’s budget include:
• $347 million in health care cuts, which would eliminate health care insurance for 20,000 working Minnesotans and reduce services for 20,000 more.
• $250 million from local government aid (LGA), which is on top of the $300 million unallotment made last year.
• $47 million in cuts to higher education.
• $181 million in state agency cuts.
• Reliance of $387 million in extended federal economic stimulus dollars that have not been authorized by Congress.
• $35 million in cuts to Northeastern Minnesota. $30 million is taken from Doug Johnson Economic Protection fund and $5 million is taken from 21st Century Minerals fund.
• $20 million in new spending for tax cut for corporations and businesses.
“This is the same playbook we have seen from this Governor and it will produce the same result for the average Minnesotan - higher property taxes, increased health care costs, higher tuition, fewer jobs, and in two years another budget deficit,” said Anzelc. “The only way to stop the cycle is to end the Governor’s failed economic policies that starve middle income families while shielding the wealthiest from any kind of sacrifice.”
During the Governor’s tenure, property taxes have increased by $3 billion, fees have increased by $1.2 billion, tuition at colleges and universities has increased by over 80% and the cost of health insurance has doubled.
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