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ST. PAUL, MN - The Minnesota Legislature adjourned Monday at midnight after the most challenging legislative session in a generation. With a quarter of a million Minnesotans out of work, a record $6.4 billion budget shortfall, and the deepest national economic recession since World War II, state lawmakers met those challenges with responsible, aggressive solutions. Based on the input of Minnesotans, the House fought to protect jobs, schools, hospitals, and nursing homes - exhausting every available tool and opportunity to prevent irreparable damage to the state’s future.
“This session was about securing our economic recovery, setting priorities, and protecting the things we hold dear in this state from slipping through our fingers during these challenging times," said Rep. Kim Norton (DFL - Rochester). “We fought hard to protect our hospitals, schools, nursing homes, and Minnesota’s most vulnerable citizens from carrying the burden of this deficit. Until the very last hour of session, I joined my fellow lawmakers in continuing that fight for Rochester, for my friends and neighbors, for all Minnesotans, and for the future we share together as a state.”
The legislature consistently offered balanced, sustainable approaches to resolving the deficit that: 1) made responsible, priority-based budget cuts; 2) maximized the use of federal recovery dollars; 3) enacted reform and enhanced accountability; 4) delayed payments to schools; and 5) relied on moderate, ongoing revenue to minimize damaging budget cuts to schools, hospitals, and nursing homes.
Governor Pawlenty signed all of the budget bills sent to him by the legislature - except for the responsible revenue needed to make the solution complete. The governor refused compromise on his plan to 1) borrow $1 billion against future revenues; 2) slash local government aid to force property taxes up another $700 million; and 3) eliminate health care and jobs for tens of thousands of Minnesotans to balance the budget.
Instead, the governor has stated he will cut billions more from the state budget using executive unallotment authority to see his original budget become law without legislative or public input. Unallotment has only been used 5 times in the state’s history (3 times by Governor Pawlenty). The most ever unalloted was $271 million by Governor Pawlenty in December 2008. His plan to unallot $3 billion dwarfs that by a factor of ten.
“In the midst of the worst financial and economic crisis in 60 years, the governor was dead-set on putting this state further in debt and putting thousands more Minnesotans out of work,” said Rep. Norton. “The governor’s unwillingness to part from his borrow-and-spend scheme would have put the state $1.8 billion in debt for the next 20 years and created $5 billion budget gap two years from now. That was something I could not accept.”
“We compromised with the governor again and again on issue after issue, and met him half-way on 5/6 of the budget. What it came down to was his plan to borrow against our children’s future,” Norton continued. “He wanted to borrow and spend. We passed a responsible pay-as-you-go solution. I am deeply disappointed the governor was unwilling to compromise and seek a reasonable solution to the real challenges facing Minnesota.”
While the total impact of Governor Pawlenty’s unallotment plan are not yet fully understood, Minnesotans saw a glimpse of the governor’s deep cutting plans Thursday night when he eliminated General Assistance Medical Care (GAMC) in Minnesota with one line-item veto. This veto cut $381 million from Minnesota hospitals and will put 8,000 health care professionals out of work. It means $23.2 million in cuts to Rochester area hospitals and the loss of health care for 30,000 of Minnesota’s poorest citizens - many are veterans and senior citizens.
“The cuts Governor Pawlenty made to Rochester hospitals will be devastating not only to those who will lose their health care coverage, but to the hundreds of dedicated professionals in our hospitals who could potentially lose their jobs,” said Norton. “We cannot underestimate what a $23.2 million cut to our hospitals means to our community. Rochester’s economy and quality of life is dependent on the health of our hospitals and health care system.”
Additionally, Governor Pawlenty vetoed a measure that would raise $1 billion in new, ongoing revenue to minimize cuts to hospitals, schools, and nursing homes. That revenue would have been raised primarily by making the income tax fairer through a small income tax increase on Minnesota’s top earners, and new taxes on credit card companies that gouge their customers with high interest rates. House Democrats attempted to override those vetoes Sunday afternoon. Those attempts failed on party lines.
“I am deeply disappointed by the outcome of the votes on Sunday,” Rep. Norton said. “Still, I am confident that the strength and resolve of Minnesotans will help see us through these challenging times together. This recession is not over, and there will be pain in the days ahead. While some of that pain could have been avoided, despite these disappointments we need to keep moving forward together.”