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State Representative David Bly
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-0171
For more information contact: Michael Howard 651-296-8873
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LEGISLATIVE SESSION CONCLUDES
LAWMAKERS SEND GOVERNOR A ‘PAY AS YOU GO’ BUDGET THAT PRESERVES MINNESOTA VALUES
ST. PAUL - The Minnesota State Legislature concluded its legislative session on Monday night, passing a balanced budget that solves the record shortfall with targeted cuts that would protect jobs, preserve health care and hospitals, and maintain a strong commitment to schools. The Governor has indicated he will veto on-going revenue included in the balanced budget and replace it with deep cuts to hospitals, higher education and local property tax relief. Rep. David Bly (DFL - Northfield) said the session included many significant accomplishments, but was disappointed the Governor would refuse to join the Legislature in a “pay as you go" budget solution.
“In these historic times, it is more important than ever I to listen to many voices. I heard from my constituents and colleagues about how to most responsibly balance our budget expressing many different opinions along the way, but I remain convinced we are one Minnesota,” said Bly. “The values we share are the priorities I supported in our effort to solve our budget shortfall responsibly. I heard we must invest in schools, health care, hospitals and care for the elderly and the disabled. Our revenue bill focused on these important commitments.”
Both the Legislature and Governor offered plans to resolve the record $6.4 billion shortfall that included cuts and revenue. Agreement was reached on about 5/6 of the budget, which was signed into law. The budget includes strategic cuts that reduced wasteful spending with a minimal impact on jobs. In addition, they held flat K-12 school funding, minimized college tuition increases, preserved public safety funding and veterans programs, and reduced mandates to local government and schools.
“A budget deficit - even if it’s $6.4 billion - isn’t an excuse to ignore our responsibility to protect our most vital services and prepare for our future,” said Bly. “We made difficult spending cuts, but not at the expense of our education system or the quality hospitals and nursing homes we all depend on.”
The difference boiled down to what kind of revenue was needed to prevent catastrophic cuts. The Legislature passed a “pay as you go” approach, while the Governor favored a “borrow and spend” approach. The borrowing plan would have raised $1 billion by pushing $1.8 billion in debt out for the next twenty years, but it got voted down in the Minnesota House on a vote of 131 - 2. The Legislature favored on-going revenue sources, such as income tax increase on the highest earning Minnesotans, in order to preserve basic services such as hospitals, schools and nursing homes. The Governor vetoed on-going revenue proposals and refused to negotiate about a permanent solution to the budget deficit.
“Reckless borrowing was a big reason we got into this economic recession and budget crisis. It’s not responsible to use the same strategy to balance our budget,” said Bly. “It’s unfortunate the Governor insisted on borrowing and spending instead of a pay as you go approach.”
The Governor has signaled he will use a process called unallotment to unilaterally resolve the gap he left with his vetoes. It will likely include a funding shift to schools, which is a way of forcing schools to borrow to meet their financial obligations. But also deep cuts to health care, hospitals, higher education and local government aid. The result will be significant job losses, the closure of rural hospitals, double-digit tuition increase, and massive property tax increases. Bly said the Governor’s decision in very disappointing for his community and added he will continue to work throughout the year on a permanent solution to restore Minnesota.
“Our challenges are not over because the session has ended, because the challenges aren’t ending for hundreds of thousands of Minnesotans who are struggling in this recession,” said Bly. “Together, we must work to support the solutions our communities and state need to emerge stronger for generations to come.”
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News Items
- Rep.-elect Bly Selected as Vice Chair of Housing Finance and Policy Committee - (Posted: Dec 21 2012 12:06PM)
- House Passes Flood Relief for Southern Minnesota in Special Session - (Posted: 2010-10-18 00:00:00)
- Governor signs eminent domain law to protect landowners - (Posted: 2010-05-03 00:00:00)
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