For more information contact: Charlie Vander Aarde 651-297-8406
Now that it’s over, Minnesotans are visiting state parks and road crews are repairing and rebuilding. Thousands have returned to work and life is returning to normal.
Governor Mark Dayton agreed to end the shutdown and put our state back to work. Due to Republican demands that protected millionaires from paying their fair share, this budget battle did not result in tax fairness and getting the state on a stable and responsible long term budget track. This was a tough but necessary decision by our governor.
Over the course of the legislative session, the governor proposed seven budget compromises, all with a mix of cuts and revenue. Republicans acknowledged that revenue was needed, it was just a matter of who was going to pay it. They chose schoolchildren, homeowners, renters and families sending their kids to college rather than those making over a million dollars a year. DFLers, backed by the majority of Minnesotans, proposed responsible revenues from those who earn the most and who pay a lower tax rate than middle class Minnesotans.
Governor Dayton reluctantly agreed to a Republican budget that is paid for by borrowing from our children and stealing future revenue. This borrow and spend budget, consistent with Pawlenty administration policies, ultimately kicked the can down the road, creating an all but certain huge budget deficit in the next biennium.
The Republican budget borrows an additional $700 million from Minnesota school districts, including schools on the Iron Range, mortgaging our children’s future to balance the current deficit. Using public schools as a piggy bank forces them to pay interest on loans, taking funds away from classrooms. The state now owes schools over $3.5 billion, with no plan to pay it back.
Fortunately, Republicans were not successful confiscating our economic protection trust fund at the IRRRB. We fought against the $60 million raid and protected an additional $14 million in operating funds for IRRRB. Our fellow DFLers from across the state stood with us in opposition to the Republican raid on our trust fund and ultimately Governor Dayton refused to allow them to take Iron Range money to St. Paul.
Jobs were the talk of 2010 campaigns. Breaking promises, Republicans voted to cut 30,000 jobs rather than create jobs. Governor Dayton and the DFL fought for a jobs bill (bonding) that will make strong investments putting people back to work and preserving Minnesota’s infrastructure. The jobs bill will fund construction projects, employing 14,000 Minnesotans. Colleges and universities will renovate aging facilities and build new labs.
Locally, Hibbing Community College will receive approximately $700,000 for the science building renovation. Iron Range Engineering at Mesabi Range Technical College received $3 million for accreditation of their innovative partnership between business and education. We also secured funding for Minnesota Diversified Industries (MDI) in Hibbing and Grand Rapids which will receive $320,000 in funding. MDI gives disabled Minnesotans the opportunity to fully participate in the workforce. It is a medium-sized integrated manufacturer which employs disabled workers who would otherwise have difficulty holding a permanent job.
Unfortunately, cuts in the higher education bill will have the effect of funding MnSCU and the U of M below 1999 funding levels, the largest cut in recent history. Tuition is capped at a four percent increase at MnSCU campuses. This will lead to reduced admissions, larger class sizes, fewer academic services and longer graduation times. This reduction is the fourth straight year of cuts to MnSCU which now serves over 50,000 more students than in 1998.
The tax bill continues the state’s reliance on property taxes as a significant source of revenue. Non-partisan research indicates property taxes will increase by at least $376 million in the next year. Funding for direct and indirect property tax relief programs are slashed as are local government aid which funds police and fire. Nearly all 300,000 Minnesota renters will have their Renters’ Credit cut, including 82,000 senior and disabled renters. When Republicans say “No New Taxes!" they mean it for millionaires, not for the middle class.
State health care and human services were cut over $1 billion, impacting the elderly, children and child care, people with disabilities, medical schools, hospitals, counties and other health care providers. Unlike the Republican budget passed in May which eliminated healthcare coverage for over 140,000 Minnesotans this budget ensures health care coverage for those 140,000 Minnesotans. However, it also reduces payments and reimbursements to nursing homes and hospitals resulting in private sector job losses and causing nursing homes and hospitals to close, especially in greater Minnesota.
This budget is not a long term solution to Minnesota’s perpetual budget deficits. Progressive, permanent revenue would ensure everyone pays their fair share. We pledge to continue the fight for a fair and equitable tax structure that will produce good jobs, good schools and a strong Minnesota.
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