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State Representative Jerry Newton
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-5369
For more information contact: Matt Swenson 651-297-8406
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STATE LEADERS STRIKE BALANCE, SEND GOVERNOR RESPONSIBLE REVENUE PLAN
ST. PAUL, MN - Anoka-Hennepin School District #11 would face $27.6 million in cuts and Mercy Hospital in Coon Rapids would lose $22.9 million if the Minnesota Legislature adjourns without raising new revenue. Schools would be closed and 700 teachers would be laid off in District #11, up to 300 employees would be let go at Mercy Hospital and area nursing homes, and the state’s ability to aggressively pursue economic recovery would be severely set back. To avoid this damaging scenario, Rep. Rep. Jerry Newton (DFL - Coon Rapids) and 85 of his colleagues in the Minnesota House voted to pass a bill (HF885) today protecting schools, hospitals, and nursing homes from potentially irreparable budget cuts.
“Minnesotans in Coon Rapids and across the state told us plainly at town hall meetings and in personal conversations to resolve this deficit responsibly - without damaging the future of our students or the health and safety of our communities," said Rep. Newton. “That’s what this bill does. Staring down the barrel of a $6.4 billion deficit, the consequences of a cuts-alone scenario are unacceptable. Moderate, progressive revenue will keep our hospitals open, our students learning, and ensure our elderly are well-cared for.”
Governor Pawlenty has acknowledged $1 billion in new revenue is needed to help fill the budget gap. The governor would pay for it by taking out a payday loan - a plan that would create an additional $800 million in interest payments. The governor’s plan was soundly defeated in the House with bipartisan support by a vote of 130 to 2.
“We can’t pass this debt on to our children,” Rep. Newton said. “It’s not responsible. The people of Minnesota elected us to lead - no matter how difficult the circumstances. I take that responsibility seriously, and I don’t want our children to still be paying for Governor Pawlenty’s deficit 20 years from now. We need to address today’s problems today with responsible, straightforward solutions.”
The House plan would raise $987 million in new revenue by: 1) creating a temporary 4th tier income tax bracket of 9% for Minnesota’s highest earners ($250,000 and above); 2) increasing the alcohol tax for by about 5 cents a drink; and 3) a 30% tax on credit card companies that charge interest greater than 15%. Every penny would be dedicated to protect three key areas of state funding from potentially irreparable budget cuts:
• $586 million would go to schools
• $288 million would go to nursing homes
• $114 million would go to hospitals
“District #11 is already facing $15 million in budget cuts,” said Newton. “Adding another $28 million to that deficit would devastate our school district and severely erode the quality of education for our students. Our kids deserve the same opportunities my parents and grandparents fought to preserve - even in the face of this state’s most difficult economic challenges. More than ever we need to follow through on that commitment, and pass on an even better Minnesota for the next generation.”
The legislature’s plan also relies on $1.8 billion in federal recovery funds and $2 billion in budget cuts - a half-billion dollars more than proposed by Governor Pawlenty. Unlike the Governor, the legislature would also protect the Health Care Access Fund. Governor Pawlenty would use those dedicated funds to balance the budget, eliminating health care for 113,000 working Minnesotans including 20,000 kids. A half-million Minnesotans are already uninsured - 67% of whom are working people.
“The challenges facing Minnesota are many, and they are serious,” Newton said. “I didn’t run for office to make things worse. The people of Coon Rapids and Andover trust me to make the best decisions for our communities and our shared future. I believe in my heart that the decision we made today to protect our most vulnerable citizens from the worst kind of budget cuts was absolutely the right thing to do. Everyone needs to share in this solution - but we can’t ask our students, the sick, and the elderly to do all our heavy lifting for us. It’s time to step up and make responsible decisions, and bring this budget crisis to an end once and for all.”
The 2009 Legislative Session is scheduled to adjourn May 18, 2009.
News Items
- LOCAL LAWMAKERS HELP DELIVER NEEDED RELIEF TO FLOOD, TORNADO VICTIMS - (Posted: 2010-10-19 00:00:00)
- REP. NEWTON STANDS UP FOR SCHOOLS - (Posted: 2010-05-12 00:00:00)
- A SAFE PLACE FOR ALL KIDS TO PLAY - (Posted: 2010-04-21 00:00:00)
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